NGK INSULATORS, LTD.
5333・Prime Market・Glass & Ceramics Products
Environment Business
Environment and industrial ceramics business centered on automotive exhaust gas purification components
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (to external customers, former segment classification) | ¥391,484 million | ¥390,371 million | ↑ |
| Operating profit (former segment classification) | ¥67,040 million | ¥68,254 million | ↓ |
| Operating profit margin (former segment classification) | 17.1% | 17.5% | ↓ |
| Sales (to external customers, new segment classification) | ¥399,469 million | ¥390,371 million | ↑ |
| Operating profit (new segment classification) | ¥68,617 million | ¥68,254 million | ↑ |
| Segment assets (new segment classification) | ¥539,162 million | ¥515,907 million | ↑ |
| Depreciation and amortization (new segment classification) | ¥39,813 million | ¥39,950 million | ↓ |
Business Details
Manufactures and sells automotive exhaust gas purification components (Honeycomb Ceramics, etc.), sensors, corrosion-resistant equipment for the chemical industry, liquid/gas membrane separation equipment, and heating equipment/refractories. Primary customers are domestic and overseas automakers, with manufacturing and sales bases spanning the US, Europe, and Asia. Sales account for approximately 60% of consolidated total, making this a core segment. From FY2027 (ending March 2027), the Low-Level Radioactive Waste Treatment Equipment business will be transferred to the Energy & Industry Business.
Recent Overview
Sales increased due to front-loaded demand and steady second-half performance in the automotive-related business, but higher development expenses limited growth in operating profit to a slight increase
In FY2026 (ending March 2026), Environment Business (former classification) sales were ¥391,484 million (up 0.3% year on year), and operating profit was ¥67,040 million (down 1.8% year on year). Sales increased due to front-loaded demand in the first half in anticipation of US tariff hikes, combined with continued steady demand in the second half, while increased R&D expenses in carbon-neutral areas such as DAC / Sub-nano Ceramic Membrane weighed on profit. For FY2027 (ending March 2027), sales are forecast at ¥400,000 million (up 2% year on year) and operating profit at ¥67,000 million (flat).
Key Products
Growth Drivers
- Capturing demand for automotive exhaust gas purification components through continued tightening of exhaust gas regulations in various countries
- Improved profitability by passing on higher US tariff rates and precious metal price increases to sales prices
- Market launch of the new gasoline sensor and expanded sales of GPF (Gasoline Particulate Filter)
- Strengthening the profit base through productivity improvements and optimization of the global production system
- Early commercialization of new carbon-neutral related products such as DAC / Sub-nano Ceramic Membrane
Risks
- Medium- to long-term decline in demand for internal combustion engine-related products due to the progress of electric vehicle (EV) adoption
- Negative impact on automobile sales and production due to US tariff measures
- Decline in shipments due to slowing automobile sales and weakening demand in China and Europe
- Profit pressure from increased R&D expenses in carbon-neutral areas such as DAC
- Rising raw material and fuel (energy) costs due to worsening conditions in the Middle East (a cost increase of ¥20,000 million is reflected in the FY2027 (ending March 2027) forecast)
- Geopolitical risks related to global production bases
Last updated: June 22, 2026