NPR-RIKEN CORPORATION

Business Details

The core segment of the Group, formed through the business integration of Riken Corporation and Nippon Piston Ring Co., Ltd. This segment manufactures and sells Piston Rings, Camshafts, Sintered Parts, Resin & Material Parts, and other components for automobiles and industrial machinery. Domestically, Riken Corporation and Nippon Piston Ring Co., Ltd. serve as the core entities, while overseas the Group operates manufacturing and sales bases across Asia, North America, and Europe. In FY2026 (ending March 2026), segment sales were ¥123,209 million, accounting for approximately 75% of consolidated sales, making it the largest segment.

Recent Overview

Sales declined but profit margin improved significantly due to business integration synergies and price optimization

In FY2026 (ending March 2026), sales were ¥123,209 million (down 3.6% year-on-year), affected by a decline in domestic automobile production and the impact of subsidiary liquidation associated with the dissolution of a joint venture. On the other hand, the effects of business integration synergies and rationalization including production system optimization and price optimization emerged, resulting in a significant increase in segment profit to ¥10,405 million (up 15.0% year-on-year). Additionally, as a subsequent event, on April 13, 2026, Riken Corporation of America acquired 100% of the shares of Hastings Holding Corp. (a pure holding company with Piston Ring manufacturing subsidiaries in the U.S. and Czech Republic) for USD 83,500 thousand, aiming to strengthen its global position in the aftermarket Piston Ring market.

Key Products

Growth Drivers

• Continued realization of rationalization and cost reduction effects from business integration synergies (Riken Corporation x Nippon Piston Ring Co., Ltd.)
• Progress in passing on rising raw material and labor costs through price adjustments (price optimization)
• Increase in global automobile production, centered on the China and India markets
• Expansion of share in North/Central America and Europe aftermarket Piston Ring market and strengthened earnings capacity through the acquisition of Hastings Holding Corp.
• Maintaining and strengthening competitiveness of existing businesses through technology development of engine parts compatible with hydrogen and alternative fuels
• Expansion of global share in niche fields such as Sintered Parts, resin, and material parts
• Acceleration of synergy creation through business reorganization by business type following the transition to an operating holding company structure in April 2026

Risks

• Medium- to long-term risk of declining demand for internal combustion engine vehicles due to progress in BEV adoption
• Continued weak sales and declining share of Japanese automobiles in the Chinese market
• Impact on global economic slowdown and automobile production volumes due to changes in U.S. tariff policy
• Risk of reduced overseas sales and profits due to exchange rate fluctuations (yen appreciation)
• Risk of continued recognition of impairment losses due to declining profitability of automotive-related product manufacturing equipment (¥1,064 million in FY2026)
• Decline in domestic automobile production (continuing impact of certification fraud issues, etc.)
• Risk related to finalization of goodwill and acquisition-related costs and integration risk associated with the acquisition of Hastings Holding Corp.