Nippon Air Conditioning Services Co., Ltd.

Business Details

The Group provides maintenance services for building equipment centered on air conditioning, including maintenance and upkeep management, equipment and environmental diagnosis/evaluation, and energy/cost-saving proposals, and integrally develops renewal construction work derived from on-site operations in line with the life cycle of building equipment. The Group has 12 consolidated subsidiaries across domestic locations and overseas locations (China, Singapore, Thailand, Vietnam, Myanmar, etc.). Its main customers are special environment facilities such as manufacturing plants, hospitals, and research facilities, and its strength lies in its advanced technical capabilities. The Group also operates a solar power generation and electricity sales business, though this is of limited materiality.

Recent Overview

In FY2026 (ending March 2026), net sales and all profit items reached record highs, with ROE improving to 13.1%

In FY2026 (ending March 2026, consolidated), net sales were ¥69,245 million (up 7.5% year on year), operating profit was ¥4,758 million (up 13.5%), ordinary profit was ¥5,108 million (up 16.8%), and profit attributable to owners of parent was ¥3,696 million (up 19.1%), achieving double-digit growth across all profit items. Investment securities increased by ¥3,872 million, expanding net assets to ¥30,940 million (up 18.4%). The Technology and Training Center began full-scale operation in April 2025. In April 2026, an average salary level increase of 5.2% was implemented for all full-time employees. A new four-year medium-term management plan for 2026 was formulated, setting targets of an 8% operating margin and 15% ROE. For FY2027 (ending March 2027), net sales are forecast at ¥74,000 million (up 6.9%) and operating profit at ¥5,300 million (up 11.4%).

Key Products

Growth Drivers

• Strong performance in the building equipment construction segment (FY2026 (ending March 2026) sales of ¥27,596 million, up 12.1% year on year), driving overall net sales
• Continued expansion of both actual and latent demand driven by growing needs for energy saving, cost reduction, and environmental conservation
• Increasing demand for advanced technical services (validation support, space decontamination, etc.) for special environment facilities such as hospitals, pharmaceutical plants, and regenerative medicine research institutes
• Enhancement of human capital value and reconstruction of comprehensive technical capabilities through the Technology and Training Center, completed in November 2024 and fully operational from April 2025
• Expansion and strengthening of overseas operations (Singapore, Thailand, Vietnam, Myanmar, etc.), with overseas sales of ¥4.5 billion set as a KPI
• Strengthening approaches to manufacturing plants and others through the solar power generation business, and new development in pharmaceutical and medical facilities through new space decontamination methods
• Realization of a positive cycle through progressive dividends (basic policy of a 50% payout ratio) and promotion of participation in the employee stock ownership plan

Risks

• Cost increase pressure from rising procurement prices for materials and equipment and increasing labor costs (an average 5.2% salary level increase was implemented in April 2026)
• Building equipment construction is dependent on customers' capital expenditure plans, and uncertainty in capital expenditure and supply chain disruptions could affect business activities
• Continuation of an uncertain management environment due to unstable international conditions, including trends in U.S. trade policy and the situation in the Middle East, as well as rising prices
• Human resource risk related to securing and developing skilled engineers (maintaining and improving technical capabilities is fundamental to competitive advantage; a net increase of +100 employees per year is set as a KPI)
• Foreign exchange fluctuation risk and country risk associated with overseas business expansion (an impairment loss was recorded at the Thailand site due to continued operating losses)
• Fair value fluctuation risk of investment securities (period-end balance of ¥9,967 million; the ratio to net assets is at a high level, and reduction is set as a KPI)