NASU DENKI-TEKKO CO.,LTD.

Business Details

This segment's main business activities are the manufacture and sale of Steel Towers & Steel Structures, Steel Pipe Poles & Overhead Line Materials, Information & Communications Materials, and other products, as well as Communication Tower Equipment Construction. Major customers are electric power companies and telecommunications companies. Business volume is secured through electric power companies' response to the revenue cap system and distribution equipment renewal, as well as orders for equipment and materials for telecommunications companies' 5G base stations, and this is the core segment accounting for approximately 82% of consolidated net sales. In FY2026 (ending March 2026), the segment achieved higher sales and profit through aggressive efforts in securing orders for large-scale trunk-line steel towers and 5G base station equipment and materials.

Recent Overview

Achieved higher sales and profit driven by orders for large-scale trunk-line steel towers and expanded orders for 5G base station equipment and materials.

In FY2026 (ending March 2026), the Electric Power & Telecommunications Infrastructure Business achieved net sales to external customers of ¥19,589 million (up 4.3% year on year) and segment profit of ¥3,069 million (up 6.7% year on year). In the electric power infrastructure business, although orders for small-scale steel towers declined, business volume was secured through orders for large-scale trunk-line steel towers. In the telecommunications infrastructure business, active efforts to secure orders for equipment and materials for telecommunications companies' 5G base stations contributed to higher sales. Segment assets declined slightly year on year, and capital expenditures also contracted significantly.

Key Products

Growth Drivers

• Expanding demand for equipment and materials driven by increased capital investment by telecommunications companies in 5G base stations
• Continued demand for distribution equipment renewal as electric power companies respond to the revenue cap system
• Expected medium- to long-term increase in electricity demand due to the rapid increase in data centers and new/expanded semiconductor plants
• Securing business volume through orders for large-scale trunk-line steel towers (offsetting the decline in small-scale steel towers)
• Demand for transmission infrastructure development accompanying the expansion of the renewable energy ratio toward achieving carbon neutrality
• Capturing demand for renewal of aging infrastructure, including communication tower life-extension work

Risks

• Risk of capital investment restraint due to electric power companies' pursuit of management efficiency
• Risk of continued declining trend in orders for small-scale steel towers
• Risk of rising raw material costs due to continued high steel prices
• Risk of revenue concentration on major customers (electric power companies)
• Risk of rising energy prices and costs due to geopolitical risks (situations in Ukraine and the Middle East)
• Uncertainty in the business environment due to US trade policy trends and financial market volatility