NPC Incorporated

Business Details

The company's only reportable segment. It mainly provides Solar Cell Manufacturing Equipment to thin-film solar cell manufacturers in the United States (with FIRST SOLAR, INC. as its major customer), while also developing Solar Panel Recycling Equipment, FA Equipment, Components sales, and Environment-Related Services (power plant inspection, panel reuse/recycling, plant factories). Effective September 1, 2024, the Environment-Related Business was integrated into this segment, transitioning to a single-segment structure. The company positions the growth of domestic and overseas solar cell markets and waste panel recycling markets as its primary business opportunities.

Recent Overview

Net sales decreased 53.9% year-on-year to ¥1,859 million, and operating income decreased 94.1% to ¥39 million, marking a significant decline in both revenue and profit

Net sales for the cumulative nine months of FY2026 (ending August 2026), September 2025 through May 2026, were ¥1,859 million (a decrease of ¥2,171 million year-on-year). This was affected by the delayed recognition of sales for some projects with existing customers, but slightly exceeded the initial plan due to increased volume of equipment relocation projects for the major U.S. customer and component sales exceeding expectations. On the profit side, the company secured operating income of ¥39 million due to high profit margins on relocation work and components and cost reductions, but this represented a substantial decline of ¥626 million year-on-year. The quarterly net loss was ¥5 million. The full-year earnings forecast remains unchanged (net sales of ¥8,014 million, operating income of ¥760 million), with sales of large-scale domestic projects and others planned for recognition in Q4. The order backlog remains at a high level of ¥9,212 million, and recognizing sales in the second half will be key to achieving the full-year targets.

Key Products

Growth Drivers

• Continued occurrence of new plant construction, equipment relocation, and modification projects for the major U.S. customer (FIRST SOLAR, INC.)
• Expanding demand for development equipment toward the domestic commercialization of perovskite solar cells (supported by the Japanese government's energy security policy)
• Expanding demand for recycling equipment domestically and overseas due to the increase in discarded solar panels (domestic legislation, European subsidies, rising awareness in Australia)
• Stable accumulation of component and consumables sales as the number of installed equipment units increases (component sales to the major U.S. customer performing well, exceeding expectations)
• Expected recognition of sales from the end of Q4 onward due to the order backlog of ¥9,212 million at the end of Q3 of FY2026 (ending August 2026)
• Production results increased significantly by 214.6% year-on-year, indicating high capacity for future sales recognition

Risks

• Customer concentration risk with the majority of net sales dependent on a single company, FIRST SOLAR, INC.
• Impact of fluctuations in U.S. trade policy (tariffs) on the major customer's capital expenditure plans
• Solar Cell Manufacturing Equipment has a long lead time from order receipt to sales recognition, so sales within the period are significantly affected by project progress (some projects experienced delayed sales recognition)
• Foreign exchange fluctuation risk (majority of sales denominated in U.S. dollars; the company recorded a foreign exchange loss of ¥8 million during the period)
• Risk of delayed commercialization of perovskite solar cells and entry by competitors
• Orders received decreased to 69.6% year-on-year, requiring attention to medium-term order pipeline trends
• Continuing uncertainty due to Middle East conditions and financial and capital market fluctuations