NASU DENKI-TEKKO CO.,LTD.
5922・Standard Market・Metal Products
Business
Nasu Denki-Tekko, founded in 1929, is a specialized manufacturer of social infrastructure equipment operating two segments: the Electric Power & Telecommunications Infrastructure Business (manufacturing and sale of transmission steel towers, distribution equipment materials, communication towers, etc., and Communication Tower Equipment Construction) and the Transportation & Other Infrastructure Business (Transportation System Materials, Road Equipment Construction & Underground Line Equipment Construction, Hot-Dip Galvanizing Processing, etc.). Its major customers are power companies such as TEPCO Power Grid (31.1% of net sales) and Tohoku Electric Power (9.4% of net sales), as well as telecommunications carriers. The group consists of the Company, 7 consolidated subsidiaries, and 1 non-consolidated subsidiary. The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
In the Electric Power & Telecommunications Infrastructure Business (82.5% of net sales), the company manufactures and sells steel towers and steel pipe poles, and undertakes Communication Tower Equipment Construction. In the Transportation & Other Infrastructure Business (17.5% of net sales), it handles the manufacture and sale of Transportation System Materials, road equipment construction, and surface treatment. The business is fundamentally built-to-order, structured to continuously secure orders from major customers such as electric power companies, telecom carriers, and road administrators. The operating margin for FY2026 (ending March 2026) is 13.3%.
Company Strengths
Sales to Tokyo Electric Power Grid amounted to ¥7,385,108 thousand (31.1% of net sales), and sales to Tohoku Electric Power amounted to ¥2,229,184 thousand (9.4% of net sales), reflecting an established, continuous business relationship with major electric power companies. Since its founding in 1929, the company has consistently supplied products for electric power, telecommunications, railway, and road infrastructure, and this track record underpins the depth of its customer base.
In addition to manufacturing sites such as the Yachiyo Plant (steel towers) and the Osaka Plant (steel towers and overhead line fittings), the company maintains a nationwide sales network including the Kansai Sales Department, Chubu Branch, Tohoku Sales Office, Hokkaido Sales Office, and Kyushu/Okinawa Branch. Seven consolidated subsidiaries (Nasu Denzai Sangyo, Nasu Electric Trading, Tohoku Nasu Electric, Hokkaido Nasu Electric, Nasu Kasei, Nasu Engineering, and N-Tech) handle manufacturing, sales, design, and surface treatment functions respectively, forming a group-wide, integrated service structure.
As of the end of FY2026 (ending March 2026), net assets stood at ¥33,537 million, and interest-bearing debt was limited to ¥4,129 million, resulting in a net cash position with cash and cash equivalents of ¥8,218 million exceeding interest-bearing debt. Against total assets of ¥47,563 million, the equity ratio remains at a high level, giving the company the financial flexibility to respond to capital expenditure needs and business expansion.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), net sales came to ¥23,747 million (up 3.5% year on year), operating income was ¥3,147 million (up 13.0%), ordinary income was ¥3,397 million (up 15.6%), and profit attributable to owners of parent was ¥2,483 million (up 31.7%), with all items renewing record highs over the past five fiscal years. In the Electric Power & Telecommunications Infrastructure Business, orders for large-scale trunk-line steel towers and materials/equipment for 5G base stations contributed to results (segment sales up 4.3%). A reduction in selling, general and administrative expenses (down ¥51 million year on year) and a significant decrease in extraordinary losses (from ¥316 million in the previous period to ¥59 million in the current period) supported the substantial increase in net income. Comprehensive income expanded sharply to ¥4,930 million (up 126.1% year on year), primarily driven by an increase in valuation difference on available-for-sale securities (up ¥2,383 million) resulting from a rise in the market value of held shares. The company's forecast for FY2027 (ending March 2027) calls for a sharp slowdown, with net sales of ¥19,656 million (down 17.2%) and operating income of ¥2,401 million (down 23.7%), as the falloff of large-scale projects is expected to weigh on performance.
Growth Strategy
Toward its 100th anniversary in 2029, the company is advancing the third phase of its "Mid-Term Management Plan 2027."
The company continues its strategy of offsetting the decline in orders for small-scale steel towers by securing orders for large-scale trunk-line steel towers. It aims to secure stable business volume by capturing capital expenditure demand arising from electric utilities' response to the revenue cap system, expansion of renewable energy, and restart of nuclear power plants. In FY2026 (ending March 2026), sales in the Electric Power & Telecommunications Infrastructure Business reached ¥19,589 million, up 4.3% year on year.
The company is actively pursuing orders for equipment and materials for telecom companies' 5G base stations, while also capturing demand for life-extension work on existing communication towers. This strategy links the external environment of increasing capital investment in base station facilities driven by 5G rollout to the expansion of the company's own orders. In FY2026 (ending March 2026), the Telecommunications Infrastructure Business functioned as a complement to the Electric Power Business.
To offset the decline in large-scale projects related to expressways, the company is actively pursuing orders for renewal of aging road-related facilities and promoting proposals for undergrounding of utility poles that contribute to strengthening urban resilience. National projects such as the Gaikan Expressway and the Chuo Shinkansen maglev line continue to face an uncertain outlook due to construction suspensions and schedule delays, but the company aims to maintain business volume through demand for renewal of existing infrastructure.
In response to the risk of rising steel and fuel costs amid heightened tensions in the Middle East, the company continues to optimize its order mix and reduce selling, general and administrative expenses. In FY2026 (ending March 2026), SG&A expenses were reduced by ¥51 million year on year to ¥2,040 million, achieving an operating margin of 13.3% (versus 12.1% in the prior period). In FY2027 (ending March 2027), cost management amid a phase of declining revenue will be key to maintaining the profit margin.
Last updated: July 19, 2026