NIKKO CO.,LTD.

Business Details

Develops manufacturing, sales, and maintenance services for asphalt plants, recycle plants, mixture silos, and electronic control equipment & plant management systems. Major customers are large road paving companies, with approximately 80% of customers being fixed/repeat clients. The domestic market is an oligopoly shared with one other company, with the Company holding approximately 80% share. Overseas, the Company has local subsidiaries in China (Nikko (Shanghai) Engineering Machinery Co., Ltd.) and Thailand (Nikko Asia (Thailand) Co., Ltd. and Nikko Global Manufacturing (Thailand) Co., Ltd.).

Recent Overview

Net sales declined slightly while profit improved; order backlog surged 91.2% year on year.

In FY2026 (ending March 2026), net sales were ¥19,327 million (down 0.8% year on year), a slight decline, but segment profit improved to ¥1,045 million (up 7.1% year on year). Although recognition timing for some projects was delayed in the first half, this was recovered in the second half. In addition to robust replacement demand supported by energy-saving support programs, demand for equipment contributing to reduced environmental impact and energy conservation also remained firm, resulting in a substantial increase in order backlog to ¥17,222 million, up 91.2% year on year. Overseas, while the economic slowdown and price competition in China continued, the Company maintained sales activities focused on profitability, and in Thailand and the ASEAN region focused on securing orders, inventory sales, and reviewing the production system.

Key Products

Growth Drivers

• Capturing robust replacement demand for asphalt plants manufactured in the 1980s by leveraging energy-saving support programs (strong order momentum, as shown by the 91.2% year-on-year increase in order backlog)
• Strengthening the stable earnings base through continuous expansion of maintenance services and transition to a preventive maintenance business model
• Creating new demand through development and market launch of GX-compliant products (medium-temperature mixture equipment, hydrogen burners, biomass fuel burners)
• Improving profitability of overseas business based in Thailand and China (sales activities focused on profitability, optimization of production systems)
• Improving profitability and reducing manufacturing costs through expanded sales of unit products such as the VP Series

Risks

• Market contraction risk from the long-term declining trend in domestic asphalt mixture production volume
• Risk of intensified price competition and plant impairment from the influx of low-priced Chinese products in Thailand and the ASEAN region
• Uncertainty in overseas demand and continued price competition due to China's economic slowdown and real estate downturn
• Market contraction risk if consolidation of asphalt plant facilities progresses due to restructuring in the road paving industry
• Risk of future entry into the Japanese market by Chinese, Korean, and other manufacturers as their technological capabilities improve
• Upward pressure on manufacturing costs from persistently high energy and materials prices and foreign exchange fluctuations

Business Details

Provides manufacturing, sales, and maintenance services for concrete plants, compact concrete plants, concrete pumps, electronic control equipment & plant management systems, and factory equipment for concrete product production. Major customers are ready-mixed concrete plants. The business is operated by the Company, Nikko Electronics Co., Ltd., Nikko Machinery Co., Ltd., and Nikko (Shanghai) Engineering Machinery Co., Ltd. Its strength lies in optimal plant maintenance operation and total management using in-house control panels, and it holds a roughly even static market share with two competitors in the domestic concrete plant market.

Recent Overview

Both net sales and profit increased, with order backlog rising strongly by 20.0% year on year

In FY2026 (ending March 2026), net sales in the Concrete Plant Business were ¥14,361 million (up 0.7% year on year), and segment operating profit was ¥2,003 million (up 16.2% year on year), achieving both higher sales and higher profit. Order backlog expanded substantially to ¥11,434 million, up 20.0% year on year, and further sales accumulation is expected going forward. In the ready-mixed concrete industry, as the trend of passing on rising raw material and energy costs to sales prices progresses, capital investment appetite remains strong, and robust demand continues.

Key Products

Growth Drivers

• Improved profitability and continued capital investment demand in the ready-mixed concrete industry as cost pass-through of rising raw material and energy costs to sales prices progresses
• Capturing demand for plant replacement and consolidation investment amid the decrease (consolidation) in the number of domestic concrete plant facilities
• Differentiation through total management services using in-house control panels and plant management systems, and stable earnings from the maintenance business
• Creation of new demand for remote areas and disaster recovery through the Mobile BP (Compact Concrete Plant)
• Addressing green demand through development of low-carbon products such as CO₂ absorption technology (participation in projects such as NEDO)

Risks

• Market contraction risk from the medium-term decline in the number of domestic ready-mixed concrete plants
• Risk of intensified price competition from the roughly even static market share held with two competitors
• Risk of rising manufacturing costs due to persistently high energy and materials prices
• Risk that macroeconomic deterioration stemming from U.S. tariff policy or geopolitical risk could dampen capital investment appetite in the ready-mixed concrete industry
• Risk of downward pressure on overseas earnings from continued economic slowdown and price competition in the China business

Business Details

Manufactures and sells conveyance equipment such as belt conveyors, equipment conveyors, and can/bottle sorters, as well as oil-contaminated soil purification plants and plastic recycling plants. This business is mainly operated by the Company on a standalone basis, producing environmental and resource-recycling plants and various conveyor systems. In FY2026 (ending March 2026), net sales achieved substantial growth to ¥4,371 million (up 34.3% year on year), expanding its share of consolidated net sales to 8.9%. Solid orders have continued, supported by demand for reduced environmental impact, resource recycling, and labor-saving.

Recent Overview

Net sales grew substantially by 34.3% to ¥4,371 million in FY2026 (ending March 2026)

In FY2026 (ending March 2026), net sales grew substantially to ¥4,371 million (from ¥3,254 million in the prior period), up 34.3% year on year, and segment profit also increased 43.6% to ¥1,216 million (from ¥847 million in the prior period). Order backlog continued to accumulate, rising 2.1% year on year to ¥1,286 million, supported by ongoing solid demand for reduced environmental impact, resource recycling, and labor- and effort-saving. Continued demand in this field is also expected in the next fiscal year (FY2027, ending March 2027).

Key Products

Growth Drivers

• Increased orders driven by expanding social demand for reduced environmental impact, resource recycling, and labor- and effort-saving
• Robust capital investment demand for environment-related equipment against a backdrop of establishing a resource-recycling society and decarbonization
• Promotion of product development and market launch based on the Nikko Group's 2030 Vision policy of becoming the "top manufacturer of environmental products"
• Accumulation of future sales supported by an order backlog of ¥1,286 million (up 2.1% year on year)

Risks

• Performance is susceptible to trends in large-scale orders, with a decrease or delay in projects being a factor in sales volatility
• Segment assets are relatively small at ¥1,854 million, making continuous order acquisition essential for business expansion
• Risk of persistently high energy and materials prices and labor shortages pushing up manufacturing costs
• Risk of deteriorating capital investment sentiment domestically and overseas due to U.S. tariff policy or geopolitical risk

Business Details

The Crusher Business is a segment engaged in the manufacturing and sale of self-propelled crushers and jaw crushers, among other products. Nikko Co., Ltd. and Maekawa Kogyosho Co., Ltd. are the main constituent companies. The main market is replacement demand from aging domestic crushed stone plants, with the Mobile Plant Division working to expand business scale through inventory management, staff reinforcement, and sales promotion events. In FY2026 (ending March 2026), the segment achieved net sales growth of 8.5% year on year, and segment profit also improved significantly.

Recent Overview

Net sales and profit improved, but impairment loss recognition and shrinking order backlog remain challenges

In FY2026 (ending March 2026), the Crusher Business achieved higher sales and profit, with net sales of ¥2,448 million (up 8.5% year on year) and segment profit of ¥69 million (up 72.5% year on year). On the other hand, the segment recognized an impairment loss of ¥171 million during the period. Order backlog remained at a low level of ¥361 million (down 3.5% from the end of the prior fiscal year), and the Company has indicated a policy of pursuing profitability-focused order-taking activities and optimizing the production system through Group collaboration.

Key Products

Growth Drivers

• Increased replacement demand due to the aging of domestic crushed stone plants (expanding demand for self-propelled crushers)
• Strengthened inventory management, staff reinforcement, and active sales promotion events by the Mobile Plant Division
• Promotion of profitability-focused order-taking activities and optimization of the production system through Group collaboration

Risks

• Order backlog remains at a low level of ¥361 million, indicating a weak leading indicator for future sales
• Impairment loss of ¥171 million was recognized in the current period, raising concerns about the profitability of fixed assets
• Since core products are imported from Europe, price competitiveness may decline in the event of yen depreciation
• Risk of delayed orders due to prolonged negotiations
• Risk of rising manufacturing costs due to persistently high energy and materials prices

Business Details

Provides manufacturing contracting services such as can fabrication, welding, and assembly for industrial machinery, gas holders, and other products. The business is operated by a three-company structure consisting of Nikko Co., Ltd. itself, Ube Koki Co., Ltd. (which joined the Group in March 2022), and Matsuda Kiko Co., Ltd. (which joined the Group in July 2023). In FY2026 (ending March 2026), net sales declined significantly due to the fading of special factors from the prior period, namely the concentration of large-scale projects and the full-year contribution of Matsuda Kiko. Under the new Medium-Term Management Plan, the policy is to pursue profitability-focused order-taking activities and optimize the production system through Group collaboration.

Recent Overview

Net sales fell sharply to ¥3,339 million, down 30.5% year on year, due to the fading of large-scale projects from the prior period

In FY2026 (ending March 2026), net sales in the Manufacturing Contracting Business were ¥3,339 million, down 30.5% year on year. This was mainly due to the reversal of special factors present in the prior period (FY2025, ended March 2025), namely the full-year contribution of Matsuda Kiko and the concentration of large-scale projects. Order backlog also declined to ¥1,824 million (down 7.0% year on year), and a cautious outlook is warranted going forward. Segment profit was ¥543 million (down 15.8% year on year). Under the new Medium-Term Management Plan, the Company has set forth a policy of promoting profitability-focused order-taking activities and optimizing the production system through Group collaboration.

Key Products

Growth Drivers

• Improved order-taking capacity and optimization of the production system through strengthened three-company collaboration with Ube Koki Co., Ltd. and Matsuda Kiko Co., Ltd.
• Accumulated customer trust and acquisition of large-scale projects based on more than 20 years of manufacturing contracting track record at Nikko itself
• Profitability-focused order-taking policy and improved Group production efficiency through collaboration under the new Medium-Term Management Plan (FY2025–FY2027)

Risks

• Risk that the reversal effect from the fading of special factors in the prior period (FY2025, ended March 2025)—concentration of large-scale projects and full-year contribution of Matsuda Kiko—will continue (a 30.5% year-on-year decline was recorded in FY2026, ending March 2026)
• Uncertain outlook due to a 7.0% year-on-year decline in order backlog
• Risk of rising outsourcing and manufacturing expenses specific to the manufacturing contracting business (persistently high energy and materials prices)
• Risk of increased manufacturing costs due to labor shortages and rising wages
• Risk of order fluctuations due to dependence on specific large customers

Business Details

Encompasses a diverse range of businesses, including the temporary equipment business (pipe scaffolding, steel road plates, pipe supports, etc.), the earthwork & agricultural tools business (shovels, spades, etc., led mainly by Tombow Kogyo Co., Ltd.), floodgates & waterproof panels, real estate leasing/sales (Nishinihon Real Estate Co., Ltd.), home renovation, construction machinery leasing, solar LED, and power panels & distribution panels (Nikko Fujiwara Denki Co., Ltd.). Major affiliated companies include Nikko Machinery Co., Ltd., Tombow Kogyo Co., Ltd., Nikko Sec Co., Ltd., Nikko Kosan Co., Ltd., Nishinihon Real Estate Co., Ltd., Nikko Baumaschinen GmbH, and Nikko Fujiwara Denki Co., Ltd. Although a non-core group of businesses not included in the reportable segments, it constitutes a stable revenue source, accounting for approximately 11% of consolidated net sales.

Recent Overview

Net sales rose 8.3% year on year to ¥5,522 million, but segment profit declined to ¥637 million

In FY2026 (ending March 2026), net sales in the Other business segment achieved growth, reaching ¥5,522 million (up 8.3% year on year). Order backlog also accumulated substantially, up 86.8% year on year to ¥1,297 million, and sales contribution is expected in the next fiscal year. On the other hand, segment profit declined to ¥637 million from ¥716 million in the prior period, reflecting continued deterioration in profitability. Segment assets increased to ¥11,815 million (from ¥11,047 million in the prior period). The increase in tangible and intangible fixed assets was ¥337 million (compared to ¥834 million in the prior period), indicating a reduction in investment.

Key Products

Growth Drivers

• Order backlog surged 86.8% year on year to ¥1,297 million, expected to contribute to sales accumulation in the next fiscal year
• Support for floodgate and temporary equipment demand from the government's Five-Year Acceleration Plan for disaster prevention and national resilience
• Continued sales contribution from the real estate business following the Group participation of Nishinihon Real Estate Co., Ltd.
• Continued stable demand in the earthwork & agricultural tools business
• Capturing demand both within and outside the Group through power panels & distribution panels (Nikko Fujiwara Denki Co., Ltd.)

Risks

• Segment profit declined to ¥637 million in FY2026 (ending March 2026) from ¥716 million in the prior period, indicating a continuing downward trend in profitability
• Sales of temporary equipment are susceptible to trends in construction investment, creating a risk of demand contraction during periods of restrained public investment
• As the segment encompasses a diverse range of businesses, profitability management for each business is complex, making it susceptible to the impact of unprofitable operations
• Risk of persistently high energy and materials prices and labor shortages pushing up manufacturing and service costs
• Risk of declining price competitiveness for European-made products imported and sold through Nikko Baumaschinen GmbH in the event of yen depreciation