ENVALITH
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NPC Incorporated

6255・Growth Market・Machinery

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株式会社エヌ・ピー・シー logo
NPC Incorporated6255

Business

NPC Incorporated is an equipment manufacturer listed on the TSE Growth Market, founded in 1992. Its core business consists of various FA Equipment (electrode formation equipment, welding equipment, vacuum laminators, inspection equipment, etc.) supplied to a U.S. thin-film solar cell manufacturer (FIRST SOLAR, INC.), which accounted for 77.8% of net sales of ¥9,272 million in FY2025 (ended August 2025). In addition, the company develops Solar Panel Recycling Equipment incorporating its patented "Hot Knife Separation Method" and "Brush Scraping Method" technologies, FA Equipment for the automotive and electronic components industries, inspection services for solar power plants, panel reuse and recycling, and a plant factory business. The company operates globally through its domestic Matsuyama Plant and its U.S. subsidiary, NPC America Automation Inc.

Business Model

The core of earnings is build-to-order production of Solar Cell Manufacturing Equipment for major US customers, with new factory construction, equipment relocation, and refurbishment projects arising continuously. As the number of installed units increases, sales of consumables and spare parts (¥971 million in FY2025 (ending August 2025)) accumulate structurally. In addition, sales of standard Solar Panel Recycling Equipment products, along with Environment-Related Services such as power plant inspection services and panel reuse/recycling, supplement earnings. Fund procurement is based primarily on internal funds, and the company has entered into overdraft agreements totaling ¥1,000 million with two banks.

Company Strengths

Equipment suppliers involved in each manufacturing process for the key customer, FIRST SOLAR, INC., are limited, and there is effectively no competition. Sales to this customer in FY2025 (ended August 2025) reached ¥7,216 million (77.8% of net sales), maintaining a high level following the previous fiscal year (¥7,849 million, 72.7%).

The patented "hot knife separation method" and "brush scraping method" enable highly precise separation of glass and metal from solar panels, minimizing residual resin. Domestic flat glass manufacturers have announced they will purchase separated glass for value, which enhances the incentive for entrants to introduce the equipment and strengthens competitive advantage.

As of the end of FY2025 (August 2025), total net assets stood at ¥10,835 million against total assets of ¥12,911 million, resulting in an equity ratio of approximately 83.9%. The company has no interest-bearing debt and holds ¥6,421 million in cash and deposits. Operating cash flow was secured at ¥1,477 million, indicating extremely high financial stability.

ENVALITH's Perspective

The order backlog at the end of the third quarter of FY2026 (ending August 2026) stood at ¥9,212 million (89.5% year-on-year), maintaining a high level. Against the full-year sales forecast of ¥8,014 million, the structure requires that large-scale project sales be recognized in the fourth quarter. While production output increased significantly, up 214.6% year-on-year, confirming manufacturing capacity headroom, there is also a track record in the third quarter of this fiscal year of sales from some existing customer projects being pushed back, meaning the risk of concentration in the fourth quarter remains. The full-year earnings forecast (sales of ¥8,014 million, operating profit of ¥760 million) has not been revised, but achieving it presupposes substantial sales recognition in the fourth quarter.

For the cumulative third quarter of FY2026 (ending August 2026), sales were ¥1,859 million (down 53.9% year-on-year), operating profit was ¥39 million (down 94.1% year-on-year), and there was a quarterly net loss of ¥5 million. This result stems from the combination of a rebound decline following a large-scale new factory construction project in the previous fiscal year and the postponement of projects. On the other hand, the gross profit margin improved significantly to 48.8% (versus 37.7% in the same period of the previous year), confirming a shift toward a higher-margin project mix including renovation projects, relocation work, and Components sales. Selling, general and administrative expenses were ¥868 million, roughly flat compared to the same period of the previous year (¥852 million), representing a heavy fixed cost burden, meaning that recovery in sales scale holds the key to profit levels.

Sales of Solar Panel Recycling Equipment grew significantly, up 135.3% year-on-year, the only category to achieve substantial growth, confirming progress in portfolio diversification in numerical terms. External tailwinds are strengthening, including domestic legislation (the Act on the Promotion of Recycling, etc. of Solar Cell Waste) and expanding demand in Europe and Australia. On the other hand, in the US market, solar panel installation volume decreased year-on-year due to policy effects, and the risk that major customers' capital expenditure plans are swayed by policy changes continues. The fact that sales of Solar Cell Manufacturing Equipment remained at just 36.7% of the same period of the previous year indicates a contraction in the core business and warrants close attention.

Growth Strategy

Continued deepening of relationships with major U.S. customers, together with portfolio diversification through perovskite solar cells, recycling equipment, and FA Equipment

Equipment relocation and refurbishment projects from a Southeast Asian plant to the new South Carolina plant were recognized as revenue in the cumulative nine months of the third quarter. Components sales also remained strong, running slightly above expectations, capturing ongoing demand associated with the customer's expanding equipment utilization. This is expected to account for the majority of the order backlog of ¥9,212 million.

In the cumulative nine months of the third quarter, 5 units of frame/J-Box separation equipment (3 domestic, 2 overseas) and 3 units of glass separation equipment (2 domestic, 1 overseas) were recognized as revenue, with sales results up 135.3% year on year, the sole segment showing substantial growth. Against a backdrop of domestic legalization (enactment of the Act on the Promotion of Recycling of Solar Cell Waste, etc.) and expanding demand in Europe and Australia, an increasing number of companies considering market entry is creating demand for the equipment.

Development equipment for perovskite solar cells for a domestic company was recognized as revenue in the cumulative nine months of the third quarter. Following Prime Minister Takaichi's policy speech and other statements indicating that the government will prioritize this area from an energy security standpoint, social implementation is progressing, centered on government and municipal facilities. While sales results for Solar Cell Manufacturing Equipment remained at 36.7% of the level of the same period last year, demand for perovskite-related equipment is in a nurturing stage as new demand.

Although modest in scale, FA Equipment (¥41 million in the cumulative nine months of the third quarter, 5.8% year on year) and Environment-Related Services (¥109 million, 92.0% year on year) are functioning as stable revenue sources that complement the Solar Cell Manufacturing Equipment business's reliance on large-scale projects. As the number of equipment units in operation increases, accumulation of Environment-Related Services revenue is expected.

Last updated: July 17, 2026