NIPPON CHUZO K. K.
5609・Standard Market・Iron & Steel
Business
Nippon Casting Co., Ltd. is a specialized casting manufacturer founded in 1920, listed on the Standard Market of the Tokyo Stock Exchange. Its business consists of a single segment, the Casting-Related Business, which covers two areas: Basic Materials (Cast Steel & Cast Iron Products) and Engineering (Steel Structures, Landscape Products, Bridge Bearings, etc., such as bridge bearings, expansion joints, and building column bases). Its major customers span a wide range, including semiconductor manufacturing equipment makers, railway and road infrastructure operators, and logistics facility developers. JFE Steel holds 36.2% of voting rights as another affiliated company, and the two also have a relationship in the procurement of raw materials such as pig iron and steel scrap. In July 2025, the company absorbed and merged its consolidated subsidiary Dat Co., Ltd., and now discloses its results on a non-consolidated basis.
Business Model
Operating on a made-to-order production basis, the company manufactures and sells high value-added products in the Basic Materials (Cast Steel & Cast Iron Products) domain, including cast steel products for semiconductor manufacturing equipment and its proprietary low thermal expansion material LEX®. In the Engineering domain, it offers bridge expansion joints leveraging technology introduced from Germany's Maurer, as well as its own developed bearing reinforcement structures. Earnings improvement is pursued through both sales price revisions and rationalization measures, with capital investment aimed at shortening lead times and reducing costs to enhance profit margins.
Company Strengths
The company possesses its proprietary low thermal expansion material LEX®, achieving high technological differentiation in cast steel products for semiconductor manufacturing equipment. It plans a significant production increase in FY2026, supported by the substantial increase in orders received in the second half of FY2025, which underpins its technological capabilities. Furthermore, it established the "Semiconductor-oriented Development Project" in September 2025 and continues to develop new materials.
The company has independently developed a technology to improve seismic performance by attaching reinforcing structures to existing bridge bearings, for which it received the Tanaka Award from the Japan Society of Civil Engineers. Through a technology licensing agreement with Germany's Maurer SE (through 2044), it also maintains a product lineup of large-scale expansion joints. The order backlog in the Engineering segment reached ¥4,025 million (as of the end of FY2026, ending March 2026).
Since 2018, the company has continued research and development of metal 3D printers, and has patented a proprietary casting method that uses additively manufactured parts as cast-in inserts. It established the "3D Printer Utilization Promotion Team" in April 2025, and plans to introduce one of the largest metal 3D printers in Japan in April 2026. Research and development expenses amounted to ¥271 million (FY2026, ending March 2026).
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥15,992 million in FY2024 (ending March 2024) and has declined for two consecutive periods, reaching ¥12,290 million in FY2026 (ending March 2026), down 8.8% year on year. Operating profit improved to ¥416 million (up 26.4% year on year), but this was driven by rationalization and price revision effects, while the revenue scale has retreated to FY2022 (ending March 2022) levels. On the other hand, the order backlog has built up to ¥9,062 million, and a surge in orders for semiconductor manufacturing equipment—driven by the external factor of AI-related demand—is expected to support a revenue recovery in FY2027 (ending March 2027) (company forecast of ¥14,000 million, up 13.9% year on year). Due to the recording of extraordinary losses, net income for the period was limited to ¥154 million, but free cash flow was a solid inflow of ¥1,515 million, indicating a sound financial position.
Growth Strategy
Aiming for a return to revenue and profit growth through capturing AI/semiconductor demand and rationalization and price revisions
Responding to a sharp increase in orders for cast steel products for semiconductor manufacturing equipment driven by AI-related demand, the company is appropriately establishing an increased production framework. Orders have increased significantly since the second half of FY2026 (ending March 2026), and this is positioned as the primary driver of sales expansion in the Basic Materials (Cast Steel & Cast Iron Products) segment for FY2027 (ending March 2027).
Continuing to promote cost rationalization in logistics expenses, outsourcing expenses, material costs, etc., along with sales price revisions. Progress in FY2026 (ending March 2026) was in line with plan, securing gross profit of ¥1,852 million, roughly the same level as the previous fiscal year. In FY2027 (ending March 2027), the company plans to improve profit margins in conjunction with promoting business alliances.
In FY2026 (ending March 2026), the company implemented the installation of large-scale metal 3D printers and made systemization investments. The aim is to improve quality and reduce costs through the sophistication and efficiency improvement of production processes. Total capital expenditure, including aging equipment replacement investment, amounted to ¥509 million (acquisition of tangible fixed assets).
Effective July 1, 2025, the company completed an absorption-type merger of its consolidated subsidiary Dat Co., Ltd., transitioning to a non-consolidated, standalone management structure. In connection with the merger, the company acquired cash equivalents of ¥250 million. The aim is to improve management efficiency through reduced administrative costs and faster decision-making.
Last updated: July 19, 2026