NICHIRIN CO.,LTD.
5184・Standard Market・Rubber Products
Business
Nichirin Co., Ltd. is a long-established rubber products manufacturer founded in 1914, with its core products including Automotive Air Conditioning Hoses, hydraulic brake hoses, and power steering hoses. The group, including 16 consolidated subsidiaries, has built a global production and sales system spanning five segments: Japan, North America, China, Asia, and Europe. Sales to the automotive industry account for more than 90% of total sales, and consolidated net sales for FY2025 (ending December 2025) were ¥73,668 million. The company is listed on the Standard Market of the Tokyo Stock Exchange. Its main customers are domestic and overseas automobile and motorcycle manufacturers, and it also provides technology licensing to South Korea's Hwaseung R&A.
Business Model
The company adopts a "just-in-time" fixed-schedule, fixed-quantity delivery method based on preliminary production plans provided by customer automakers, employing a build-to-order model to limit inventory risk. It conducts local manufacturing and local sales at bases in Japan, North America, China, Asia, and Europe, aiming to diversify foreign exchange risk and reduce local procurement costs. R&D expenses of ¥1,303 million (FY2025, ending December 2025) were invested to advance development of next-generation products such as hoses compatible with refrigerant conversion and components for EVs. Royalty income from technical assistance agreements also serves as a supplementary revenue source.
Company Strengths
Since its founding in 1914, the company has progressively expanded its automotive hose product lineup: hydraulic brake hoses (1937), car air conditioning hoses (1957), and power steering hoses (1965). It has obtained IATF16949 certification and maintains product competitiveness centered on polymer design technology. R&D expenses increased by ¥83 million year-on-year to ¥1,303 million in FY2025 (ending December 2025).
The company operates 16 consolidated subsidiaries across five segments: Japan, North America, China, Asia, and Europe. As of the end of FY2025 (ending December 2025), the equity ratio stood at 68.5%, and while interest-bearing debt was ¥2,132 million, cash and cash equivalents totaled ¥18,858 million, maintaining a substantially debt-free management structure. Operating cash flow was stably generated at ¥8,353 million.
The Asia segment maintained high profitability with net sales of ¥25,021 million and an operating margin of 14.0%, while the China segment achieved an operating margin of 15.2%. The Europe segment expanded significantly, with production volume up 122.4% year-on-year and net sales increasing 17.5% year-on-year to ¥8,035 million, and also began new deliveries of Hose Products for Motorcycles to BMW.
ENVALITH's Perspective
Performance Trend
Revenue increased for four consecutive periods, from ¥58,260 million in FY2021 to ¥73,668 million in FY2025. In Q1 FY2026, revenue reached ¥20,798 million (+13.6% year-on-year), accelerating further, and progress remains on track toward achieving the full-year forecast of ¥78,000 million (+5.9% year-on-year). Operating profit had declined for two consecutive periods after peaking at ¥9,620 million in FY2023 (falling to ¥9,060 million in FY2025), but improved to ¥2,834 million (+10.2% year-on-year) in Q1 FY2026. As an external factor, the disappearance of the prior-year foreign exchange loss significantly boosted ordinary profit (+39.7%). While the pass-through of raw material market conditions to selling prices, solid performance in Asia, and a sharp recovery in Europe are driving profit growth, rising tariff costs in North America and uncertainty over US-China relations remain downside risks.
Growth Strategy
Three-pillar strategy based on Medium-Term Plan 2030: deepening existing businesses, EV readiness, and expansion into non-automotive fields
NICHIRIN ATCO TEXAS, INC. was made a consolidated subsidiary at the end of June 2025, marking entry into the Hose and Piping Products for Trucks (NAT) business in North America. Revenue contribution was confirmed in the first quarter of FY2026 (ending March 2026), but operating profit remained at ¥118 million due to goodwill amortization and increased tariff costs. Realizing integration synergies and responding to tariffs are key to monetization.
Leveraging the four-site structure in India and Southeast Asia, the company is capturing demand from expanding automotive production in Asia. In the first quarter of FY2026 (ending March 2026), the segment achieved net sales of ¥7,021 million and an operating margin of 16.6%, functioning as the group's second-largest profit pillar. Market tailwinds such as the mandatory adoption of ABS in India are also expected to drive medium-term growth.
Leveraging the two-site structure in Spain and Bulgaria, the company is expanding sales to European manufacturers. Operating profit in the first quarter of FY2026 (ending March 2026) improved significantly to ¥112 million (versus ¥34 million in the same quarter of the previous year), with profit contribution beginning to take full shape. Expansion of the customer base is also progressing, including the start of new supply of Hose Products for Motorcycles to BMW.
The company continues negotiations to reflect rising raw material prices and wage increase costs in selling prices to customers. The effect became evident in the Japan segment in the first quarter of FY2026 (ending March 2026), with net sales of ¥9,282 million and operating profit of ¥1,261 million (versus ¥797 million in the same quarter of the previous year), achieving a significant increase in profit.
Based on Medium-Term Plan 2030, the company is advancing product development for EVs and expansion into non-automotive fields. The revision of EV strategy in the U.S. market (shifting to a flexible production system including HVs) is expected to support demand for existing products in the short term, but responding to the medium- to long-term transformation of the product portfolio remains a challenge.
Last updated: July 17, 2026