Niterra Co., Ltd.

Business Details

The Group's flagship segment, manufacturing and selling automotive components such as Spark Plugs and exhaust gas sensors. Revenue is composed of two pillars—products for new vehicle assembly and products for the replacement market—across global markets including the US, Europe, China, and Japan. Revenue accounts for approximately 80% of consolidated total revenue, making this the core business and the Group's primary source of profit. Replacement products have stable demand linked to the number of vehicles in operation.

Recent Overview

Revenue increased across all global regions, but operating margin declined due to decreasing internal combustion engine vehicles

In the Automotive-related segment for FY2026 (ending March 2026), revenue was ¥587,505 million (up 8.2% year on year) and operating profit was ¥135,302 million (up 0.8% year on year). Sales of new vehicle assembly products grew globally, including in the US, Europe, China, and Japan, while replacement products also performed steadily. On the other hand, production of internal combustion engine vehicles declined slightly year on year, with production of such vehicles particularly weak in China amid rising EV adoption. Against the backdrop of revenue growth, the increase in operating profit was limited, and the operating margin declined from 24.7% in the prior period to 23.0%. For the next fiscal year (FY2027, ending March 2027), the company forecasts revenue of ¥623,572 million (up 6.1%) and operating profit of ¥141,590 million (up 4.6%).

Key Products

Growth Drivers

• Continued steady demand for replacement products (aftermarket): stable demand linked to the number of vehicles in operation worldwide
• Growth in sales of new vehicle assembly products across all global regions (US, Europe, China, Japan)
• Improved sales mix driven by high growth in sensor products (up 9.2% year on year)
• Improved profitability through expanded sales of high value-added products
• Regional diversification effects from the global manufacturing and sales network

Risks

• Continued decline in production of internal combustion engine vehicles in the Chinese market amid accelerating EV adoption
• Continuation of the trend of slightly declining global production of internal combustion engine vehicles year on year
• Impact on production location adjustment costs and price pass-through from continued US tariff policy
• Cost increase pressure from sharp rises in prices of precious metals and other raw materials
• Foreign exchange risk (headwinds to revenue and profit in the event of yen appreciation)
• Risk of production adjustments and demand fluctuations by US and European automakers