ENVALITH
日東精工株式会社 logo

NITTOSEIKO CO.,LTD.

5957・Prime Market・Metal Products

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日東精工株式会社 logo
NITTOSEIKO CO.,LTD.5957

Business

Nitto Seiko Co., Ltd. was founded in 1938 and is headquartered in Ayabe City, Kyoto Prefecture, listed on the Prime Market of the Tokyo Stock Exchange. The group consists of the company and 29 subsidiaries, operating four businesses: Precision Screws & Industrial Fasteners (Fastener Business), industrial machinery such as Automatic Screw Tightening Machines (Industrial Machinery Business), flow meters, analytical instruments, and ground survey equipment (Control Systems Business), and medical devices (Medical Business). Its major customers span a wide range of industries including automotive, electronics, data centers, shipbuilding, and medical, and it has a global business foundation with production and sales bases in Japan as well as Asia, North America, and Europe. Consolidated net sales for FY2025 reached a record high of ¥50,238 million.

Business Model

The Fastener Business, accounting for approximately 74% of net sales, is the core business, with its strength lying in an integrated production system covering the design, raw material procurement, processing, inspection, and packaging of Precision Screws. The Industrial Machinery Business is a segment specializing in FA equipment that externally sells the automation technology cultivated in fastener manufacturing, achieving a high operating margin of 12.1%. The Control Systems Business secures stable earnings through fluid measurement and environmental analysis equipment that applies precision processing technology. The company adopts a diversified business model in which each business shares technology and customer bases while addressing a wide range of industrial needs.

Company Strengths

Built an integrated production system spanning design through inspection and packaging. Rolls out proprietary high-value-added products such as AKROSE, a dissimilar metal joining technology for automotive batteries, JOISTUD, which supports lightweight and thin-plate applications, and Gizatight for lightweighting-related component changes. In FY2025 (ending March 2025), the Fastener Business achieved operating profit of ¥2,271 million, up 38.8% year on year.

Supplies products to multiple structurally growing markets, including automotive components for ADAS and EVs, precision screws and flow meters for data centers amid the spread of generative AI, and screening analysis devices driven by tightening PFAS regulations in Europe. The business structure captures demand while diversifying dependence on specific customers and industries.

Operates 29 subsidiaries across Asia (Thailand, Indonesia, Taiwan, China, India), North America, and Europe. In March 2025, made India's VULCAN FORGE PRIVATE LIMITED a subsidiary, marking a full-scale entry into the Indian market. Continues to pursue ongoing overseas expansion, including the 2023 establishment of a sales base for analytical instruments in Germany for the European market.

ENVALITH's Perspective

In 1Q of FY2026 (ending March 2026), net sales were ¥12,594 million (up 8.8% year-on-year) and operating profit was ¥987 million (up 82.5% year-on-year), achieving substantial profit growth. Against the full-year operating profit forecast of ¥3,800 million, the 1Q progress rate stood at 26.0%, indicating generally solid progress. While there is a rebound effect from M&A-related expenses recorded in the same period of the previous fiscal year, the profit contribution from the Indian subsidiary and reductions in selling, general and administrative expenses (from ¥2,246 million in the same period of the previous year to ¥2,090 million in the current period) demonstrate genuine underlying improvement.

The Control Systems Business posted net sales of ¥1,627 million (down 3.2% year-on-year) and operating profit of ¥109 million (down 25.5% year-on-year) in 1Q of FY2026 (ending March 2026), the only segment to see both revenue and profit decline. The Medical Business remains extremely small in scale with net sales of ¥24 million, continuing to post an operating loss of ¥30 million. If earnings improvement in these two segments is delayed, there is a risk it could offset the strong performance of the Fastener Business and Industrial Machinery Business. As an external factor, a decline in planned domestic automobile model changes is affecting demand in the Control Systems Business.

Against the full-year forecast of net sales of ¥52,000 million (up 3.5% year-on-year) and operating profit of ¥3,800 million (up 10.7% year-on-year), 1Q results showed both sales and profit exceeding the same period of the previous year, marking a good start. However, external risks remain, including uncertainty over the outlook for the situation in the Middle East and the impact of U.S. tariff policy, and the earnings forecast remains unrevised from the figures announced on February 10, 2026. To reach the final target of the medium-term plan of ¥6,000 million in operating profit for FY2028, a substantial buildup from the current profit level will be required, and it will be necessary to continuously monitor the pace of earnings improvement across each business.

Growth Strategy

Pursuing four growth strategies under "Mission G-final," targeting operating profit of ¥6,000 million in FY2028 (ending March 2028)

Promoting expanded sales of automotive screws/parts and data center-related screw tightening machines and flow meters. The two Indian subsidiaries acquired in March 2025 began contributing to results from 1Q FY2026, contributing to increased revenue and profit in the Fastener Business.

Demand for elemental analyzers and screening analysis devices continues against the backdrop of stricter European PFAS regulations. Promoting industry-academia joint research on organic solvent recycling devices and PFAS decomposition technology to expand the environmental solutions business.

Under the first-year theme of the new medium-term management plan "Mission G-final," "2026: Accelerating Earning Power with Innovation at the Core," human capital strengthening is positioned as one of the four pillars of the growth strategy. Details of specific initiatives are described in the supplementary explanatory materials.

The forecast annual dividend for FY2026 (ending December 2026) is ¥24 (a ¥1 increase from ¥23 in the previous fiscal year). An equal dividend of ¥12 at the end of the second quarter and ¥12 at fiscal year-end is planned. The policy is to strengthen shareholder returns while maintaining financial soundness (equity ratio of 64.6%).

Due to product portfolio realignment, 1Q FY2026 sales grew 120.8% year-on-year. Efforts to launch the "High-purity Bioresorbable Magnesium Material for Medical Use" are ongoing. Also promoting the acquisition of contract manufacturing projects.

Last updated: July 17, 2026