Nippon Light Metal Holdings Company, Ltd.
5703・Prime Market・Nonferrous Metals
Business
Nippon Light Metal Holdings is a pure holding company overseeing an integrated aluminum group comprising 77 subsidiaries and 19 affiliated companies. The group covers nearly the entire range of aluminum-related businesses, from Alumina, Chemical Products & Ingots to Sheet & Extruded Products, Foil & Powder Products, and processed products such as transportation equipment, construction, and automotive parts. Its major customers span a wide range of industries including automotive, electronics, semiconductors, food, construction, and transportation equipment, with production and sales bases deployed both domestically and overseas. Consolidated net sales for FY2026 (ending March 2026) reached ¥585,473 million.
Business Model
A fully integrated vertical value chain has been built, spanning alumina refining through secondary alloy, rolling, extrusion, foil, powder, and processed products. Value is accumulated at each stage through processing fee and selling price revisions. The four segments function in a mutually complementary manner, diversifying risk from demand fluctuations in specific markets. With R&D expenditure of ¥6,793 million, the structure is designed to enhance profitability through the development of high-value-added products and new applications.
Company Strengths
The company possesses diverse materials and processing technologies in-house—casting, extrusion, rolling, surface treatment, joining, cutting, etc.—and has built a system capable of providing integrated services from alloy development through design, construction, and maintenance. The Group Technical Center promotes technology integration through a matrix organization, and R&D expenses for FY2026 (ending March 2026) reached ¥6,793 million.
The company has a track record of mass-producing and selling multiple high-value-added products in the EV and electronic materials fields, including sheet materials for lithium-ion battery cases, electrode foil for automotive aluminum electrolytic capacitors (average selling prices rising due to expanding demand for higher-voltage products), Aluminum Hydroxide & Alumina for heat-dissipating flame-retardant fillers, and Electronic Material Aluminum Powder & Aluminum Nitride for heat dissipation applications.
The company operates production facilities for secondary alloy, foil, and powder products in the United States, Thailand, India, China, Mexico, and elsewhere. An Indian secondary alloy plant began operations in 2024 and has since transitioned to full-scale production. In the first half of 2025, the company took a capital stake in an Indian recycled aluminum business company, building a track record of establishing a global circular supply chain.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal periods, from ¥486,579 million in FY2022 (ended March 2022) to ¥585,473 million in FY2026 (ending March 2026). Operating profit fell sharply to ¥7,539 million in FY2023 (ended March 2023) before recovering and expanding for three consecutive fiscal periods, reaching ¥18,189 million in FY2024 (ended March 2024), ¥21,744 million in FY2025 (ended March 2025), and ¥25,626 million in FY2026 (ending March 2026). Factors behind the profit increase in FY2026 (ending March 2026) include a substantial improvement in the Processed Products & Related Businesses segment (+87.9%), strong performance in the Foil & Powder Products segment (+40.1%), and the growing effect of price revisions taking hold. As an external factor, rising aluminum ingot market prices pushed up costs, but this was increasingly passed through to selling prices. Operating cash flow improved significantly to ¥25,623 million from ¥12,059 million in the previous fiscal year, and the financial position also strengthened, with the equity ratio rising to 44.7% (from 42.8% in the previous fiscal year).
Growth Strategy
Under the 2035 Vision "Circulation × Co-creation," the 26th Medium-Term Management Plan (26 Chuki) targets ROIC of 8% or higher and ordinary income exceeding ¥30.0 billion
Formulated the 3-year 26 Chuki, with FY2026 (ending March 2026) as the first year. Advancing under two core policies: (1) "Creating New Value" (selection and concentration of business domains, utilization of external alliances and M&A), and (2) "Process Transformation" (promoting digitalization through AI and data utilization). Established the "Group Integrated Strategy Office" in April 2026 to oversee company-wide optimal management.
The Secondary Aluminum Alloy subsidiary in India, which began operations in 2024, will reach full-scale operation in FY2026 (ending March 2026), contributing to revenue growth. In the first half of 2025, decided on and executed a capital participation in a recycled aluminum business company in India. The US Secondary Aluminum Alloy business continues to see favorable sales conditions. Building an international supply framework for low-carbon materials through aluminum recycling.
Completed, as originally targeted by March 2026, the recurrence prevention measures for improper conduct related to quality formulated in 2023. Through the promotion of management reform and strengthening of internal control functions, built a transformation foundation for preventing recurrence of improper conduct and realizing the future vision.
The annual dividend for FY2026 (ending March 2026) is ¥80 (up from ¥70 in the previous fiscal year), with a dividend payout ratio of 31.6%. For FY2027 (ending March 2027), an annual dividend of ¥100 (interim ¥40, year-end ¥60) is planned, with a policy to raise the total return ratio to approximately 40%. Aiming to expand shareholder returns in conjunction with achieving the long-term vision of ROIC of 10% or higher.
Last updated: July 19, 2026