ENVALITH
日本インシュレーション株式会社 logo

JAPAN INSULATION CO., LTD.

5368・Standard Market・Glass & Ceramics Products

Official website
日本インシュレーション株式会社 logo
JAPAN INSULATION CO., LTD.5368

Business

Nippon Insulation Co., Ltd. is a long-established materials and construction company founded in 1914. In 1966, it developed the world's first manufacturing technology for xonotlite-type calcium silicate material with heat resistance of 1,000°C, entering the fireproofing and insulation field. The company currently operates two segments: Construction-related (steel-frame fireproof covering materials, noncombustible interior building materials, fireproof covering construction) and Plant-related (insulation materials and insulation construction for petroleum, chemical, and steel plants). In addition to its two domestic plants (Gifu and Hokusei), its Vietnamese subsidiary JIC Vietnam manufactures calcium silicate insulation materials using rice husk biomass and supplies them to Southeast Asia and East Asia. Its main customers are construction companies and plant owners (electric power, petroleum, chemical, and steel companies), and it handles everything from product sales to construction contracting on an integrated basis.

Business Model

A vertically integrated model combining product sales with completed construction work (contracted construction) forms the core of earnings. Of the ¥14,394 million in net sales for FY2026 (ending March 2026), Plant-related sales totaled ¥9,279 million and Construction-related sales totaled ¥5,115 million. The construction segment applies revenue recognition based on progress (input method), and the order backlog enhances revenue visibility. By constructing with its own products, the company maintains centralized quality control and a structure that allows customer improvement requests to be quickly reflected in product design.

Company Strengths

In 1966, the company developed the world's first manufacturing technology for 1000°C heat-resistant xonotlite-type calcium silicate material. Since then, it has continuously obtained fireproof certification licenses based on the Building Standards Act, accumulating technology and certifications that are difficult for competitors to replicate in a short period. In FY2026 (ending March 2026), the company continues to obtain new fireproof licenses and develop new fireproof boards, maintaining technical barriers to entry.

The company has built an integrated system in which it manufactures calcium silicate materials in-house and handles design, construction, and quality control consistently. Construction management is the responsibility of the company's own employees, and any defects within the contractual non-conformity liability period are repaired entirely at the company's own expense. This system allows customer improvement requests to be smoothly reflected in product design, achieving both quality and customer trust.

JIC Vietnam, established in 2014 and operational since 2016, manufactures "Daiparite-E," a biomass-based calcium silicate insulation material using rice husks as fuel and raw material, and supplies it to Southeast Asia and East Asia. With a raw material and fuel structure different from that of domestic plants, it functions as a unique production base that simultaneously addresses environmental considerations and captures overseas demand.

ENVALITH's Perspective

For FY2026 (ending March 2026), revenue was ¥14,394 million (+17.8% YoY), operating profit was ¥1,612 million (+56.9% YoY), and net income attributable to owners of the parent was ¥1,178 million (+51.7% YoY), with all indicators showing substantial increases. Operating profit, which had fallen to its lowest level in the past five fiscal years in the prior period (FY2025, ended March 2025), recovered sharply due to increased construction orders in both the Construction-related and Plant-related segments and expansion of gross profit. The operating profit margin improved from 8.4% to 11.2%, and ROE rose from 5.7% to 8.3%.

The company's full-year forecast for FY2027 (ending March 2027) anticipates a sharp deterioration, with revenue of ¥13,050 million (-9.3% YoY), operating profit of ¥1,125 million (-30.2% YoY), and net income of ¥734 million (-37.7% YoY). The main factors cited are turmoil in U.S. trade policy, rising energy prices due to worsening conditions in the Middle East, and an increase in customers postponing or canceling investment plans, reflecting high uncertainty in the external environment. The cumulative forecast for the first half (H1) (revenue of ¥5,811 million, operating profit of ¥281 million) shows a substantial decline compared to the same period of the previous year, indicating a structure highly dependent on recovery in the second half.

Revenue of ¥14,394 million in FY2026 (ending March 2026) exceeded the peak-year level (¥14,119 million in FY2022, ended March 2022), and ROE of 8.3% achieved the 8% target. However, the FY2027 (ending March 2027) forecast again falls significantly short of the target, making it unclear whether the final-year targets of the medium-term plan will be reached. Factors continuing to pressure profitability include rising personnel costs (continued base pay increases), soaring material prices, and increased selling, general and administrative expenses associated with the introduction of test equipment for the Environmental Equipment business. The provision for asbestos health damage compensation (fixed liabilities of ¥115 million) also remains outstanding.

Growth Strategy

Expanding existing businesses along three axes—environment, disaster prevention, and overseas—while building a third business pillar (environmental improvement)

In addition to the core Fireproof Covering Materials, the company is promoting expanded sales of peripheral products such as interior finishing materials and molding materials for carbon fiber reinforced plastics. In the construction division, demand is being developed through construction methods tailored to customer needs and expanded certifications. In FY2026 (ending March 2026), an increase in large-scale project orders resulted in net sales of ¥5,115 million and segment profit of ¥1,098 million.

The company aims to capture, over the medium to long term, expanding demand for Plant Insulation Materials and Insulation & Refrigeration Construction driven by customers' carbon neutrality initiatives (SAF, ammonia fuel, chemical recycling, etc.). In the short term, the policy is to secure profitability by winning orders that fill demand shortfalls, developing peripheral areas, and implementing price pass-through. In FY2026 (ending March 2026), performance was solid, with net sales of ¥9,279 million and segment profit of ¥1,668 million.

The company is advancing R&D aimed at building a "third business pillar that contributes to environmental improvement," following construction-related and plant-related businesses. In FY2026 (ending March 2026), SG&A expenses increased due to the introduction of testing equipment for the environmental business, placing the company in an investment phase. The specific timing and scale of commercialization have not been disclosed at this time.

The company is concurrently promoting improved labor productivity through DX, enhancement of human capital through work-style reforms, improved equipment productivity through relocation and renewal of aging facilities, stable expansion of overseas business via JIC Vietnam, and improvement of internal control standards. Continued base salary increases are planned, and rising personnel costs are expected to remain a factor pressuring profitability for the time being.

Last updated: July 19, 2026