Sumitomo Electric Industries, Ltd.
5802・Prime Market・Nonferrous Metals
Environment & Energy Business
Achieved the largest revenue and profit growth among all segments, driven by power infrastructure and decarbonization-related products
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (full year) | ¥1,178,780 million | ¥1,081,344 million | ↑ |
| Operating profit (full year) | ¥90,615 million | ¥78,718 million | ↑ |
| Operating margin (full year) | 7.7% | 7.3% | ↑ |
| Year-on-year revenue increase | Increase of ¥97,436 million (up 9.0% year on year) | — | ↑ |
| Year-on-year operating profit increase | Increase of ¥11,897 million | — | ↑ |
| Next fiscal year revenue forecast (full year) | ¥1,060,000 million | ¥1,178,780 million | ↓ |
Business Details
A segment engaged broadly in energy infrastructure, including Power Cables & Transmission/Distribution Wires, power distribution equipment, winding wire, Power Receiving/Transforming Equipment & Control Systems, and electrical construction. Its main customers are domestic and overseas electric power companies and industrial clients, and it provides solutions in collaboration with group companies such as Nissin Electric Co., Ltd. Demand for power cables and power receiving/transforming equipment has remained solid against a backdrop of decarbonization and expanding renewable energy adoption. Note that Sumitomo Densetsu Co., Ltd. was excluded from consolidation during the current fiscal year.
Recent Overview
Power cables, power receiving/transforming equipment, and rectangular winding wire drove revenue and profit growth; Sumitomo Densetsu excluded from consolidation
In FY2026 (ending March 2026), revenue increased to ¥1,178,780 million (up ¥97,436 million, or 9.0%, year on year) and operating profit increased to ¥90,615 million (up ¥11,897 million year on year), driven by increases in power cables, rectangular winding wire for EV motors, power receiving/transforming equipment at Nissin Electric Co., Ltd., and electrical construction at Sumitomo Densetsu Co., Ltd. On the other hand, since Sumitomo Densetsu Co., Ltd. was excluded from consolidation during the current fiscal year, the revenue forecast for the next fiscal year is expected to be ¥1,060,000 million, a level below the current fiscal year's actual results.
Key Products
Growth Drivers
- Expanding demand for power cables (domestic equipment renewal, renewable energy interconnection lines, expansion into new European base)
- Increasing demand for rectangular winding wire for EV motors (spread of electric vehicles, development of next-generation products supporting higher voltage)
- Reliable capture of domestic equipment renewal demand for power receiving/transforming equipment at Nissin Electric Co., Ltd. and expansion of production capacity
- Effect of rising copper prices boosting revenue
- Improved profit margin through productivity improvement and cost reduction
- Strengthening synergy creation with Nissin Electric Co., Ltd.
Risks
- Revenue and profit decline from the next fiscal year onward due to exclusion of Sumitomo Densetsu Co., Ltd. from consolidation (next fiscal year revenue forecast is down ¥118,780 million from the current fiscal year)
- Risk from fluctuations in copper prices (impact on raw material costs)
- Project risk and cost increases associated with launching a new base in Europe
- Risk from fluctuations in the pace of electric vehicle market penetration (impact on demand for rectangular winding wire)
- Deterioration of the business environment due to geopolitical risks including additional U.S. tariffs
- Logistics and supply chain disruption and rising raw material and energy prices due to escalating tensions in the Middle East
Last updated: June 26, 2026