NIKKO CO.,LTD.
6306・Prime Market・Machinery
Business
Nikko Co., Ltd., founded in 1919 and headquartered in Akashi City, Hyogo Prefecture, is an industrial machinery manufacturer whose corporate group comprises the company and 14 subsidiaries. In its core Asphalt Plant Business, the company commands approximately 80% domestic market share, and it has also established itself as a top manufacturer in the Concrete Plant Business. The company operates diversified segments including environmental and conveyance machinery, crushers, manufacturing contracting, and temporary equipment/real estate, with major customers including road paving companies, ready-mixed concrete producers, quarrying operators, and construction companies. In addition to its domestic operations, the company has overseas bases in Thailand, China, and Germany, conducting business globally. Consolidated net sales for FY2026 (ending March 2026) were ¥49,371 million.
Business Model
The core business model is a two-layer structure that generates initial revenue from plant equipment manufacturing and sales, while accumulating stable, recurring revenue from over 12,000 maintenance and upkeep service jobs annually. Through in-house development of Electronic Control Equipment & Plant Management System, the company provides total solutions and builds relationships as a management partner across the customer's entire equipment lifecycle. Complementary segments such as Manufacturing Contracting Business and real estate support the group's overall revenue.
Company Strengths
Sales in the Asphalt Plant Business totaled ¥19,327 million, holding a domestic market share of approximately 80%. The order backlog for FY2026 (ending March 2026) expanded significantly, up 91.2% year on year to ¥17,222 million, with strong order momentum underpinning the company's market dominance. Its long track record and nationwide sales and service network serve as barriers to entry for competitors.
The Maintenance Service, which handles over 12,000 plant construction projects annually, supports stable earnings. In the Concrete Plant Business, maintenance sales grew 8.2% year on year, while in the Asphalt Plant Business they continued to expand, up 3.0% year on year. By combining this with its proprietary Electronic Control Equipment & Plant Management System, the company centralizes customers' facility management, building long-term customer relationships.
Centered on core technologies of "heating, kneading, conveyance, and control," the company operates diversified segments including asphalt, concrete, environment & conveyance, crushers, manufacturing contracting, and temporary equipment. Through M&A, it acquired Ube Koki in 2022, Matsuda Kiko in 2023, and Nikko Fujiwara Denki in 2025, continuously expanding group manufacturing capacity and revenue sources. A sound financial base with an equity ratio of 58.0% supports its M&A strategy.
ENVALITH's Perspective
Performance Trend
Revenue expanded 27.1% over five periods, from ¥38,846 million in FY2022 (ended March 2022) to ¥49,371 million in FY2026 (ending March 2026). Operating profit bottomed out at ¥1,028 million in FY2023 (ended March 2023) and has increased for three consecutive periods, reaching ¥3,099 million in FY2026 (ending March 2026), up 12.0% year on year, with the operating margin improving to 6.3% (from 5.6% in the previous period). This was mainly driven by an improvement in the gross profit margin resulting from a decrease in cost of sales (from ¥35,169 million to ¥34,173 million). Profit attributable to owners of parent rose sharply to ¥2,536 million, up 26.3% year on year. As external factors, robust domestic plant replacement demand utilizing energy-saving support programs and increasing capital investment appetite in the ready-mixed concrete industry underpinned performance. Meanwhile, although the timing of revenue recognition for some projects was delayed in the first half, this was recovered in the second half. Cash and cash equivalents decreased from ¥13,977 million to ¥11,394 million, mainly due to repayment of short-term borrowings and increased dividend payments.
Growth Strategy
Advancing three pillars—profitability improvement, business portfolio strengthening, and capital efficiency enhancement—toward realizing the 2030 Vision
In both the Asphalt Plant Business and Concrete Plant Business, the company is promoting the capture of replacement demand by leveraging energy-saving support schemes, and expanding IoT-enabled predictive maintenance services. In FY2026 (ending March 2026), order backlog achieved substantial growth, up 91.2% year-on-year for Asphalt Plant and up 20.0% year-on-year for Concrete Plant.
The company is promoting the development and market launch of GX-compliant products (medium-temperature mixing equipment, hydrogen burners, biomass fuel burners, CO₂ capture/absorption technology, etc.). Net sales of the Environment & Conveyance Business increased 34.3% year-on-year to ¥4,371 million, with segment profit reaching ¥1,216 million (versus ¥847 million in the previous fiscal year), reflecting progress toward high growth and higher profitability.
In China, the company continues sales activities with an emphasis on profitability. In Thailand and the ASEAN region, it is promoting optimization of production and sales structures. In FY2026 (ending March 2026), the company recorded a loss on reorganization of affiliated companies of ¥402 million and an impairment loss of ¥171 million, reflecting a stage of ongoing structural reform. Sales in China increased from ¥2,806 million in the previous fiscal year to ¥3,190 million, although the impact of price competition continues.
The medium-term management plan positions the improvement of capital efficiency as a key priority. ROE for FY2026 (ending March 2026) improved to 7.1% (from 5.9% in the previous fiscal year), with an equity ratio of 58.0%. The annual dividend was increased to ¥40 per share (dividend payout ratio of 60.7%), and a dividend of ¥42 per share (forecast payout ratio of 61.1%) is planned for FY2027 (ending March 2027). The company continues its policy of increasing dividends in line with business performance while placing emphasis on dividend stability and continuity.
Last updated: July 19, 2026