NIPPON GEAR CO.,LTD.
6356・Standard Market・Machinery
Gear and Gear Equipment Business
Nippon Gear's core segment. Manufactures and sells products for gear equipment and industrial machinery.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales Revenue (Full Year) | ¥7,513 million | ¥7,208 million | ↑ |
| Segment Profit (Full Year) | ¥1,686 million | ¥1,292 million | ↑ |
| Segment Assets (Fiscal Year-End) | ¥3,250 million | ¥3,449 million | ↓ |
| Depreciation and Amortization (Full Year) | ¥222 million | ¥218 million | ↑ |
| Orders Received (Full Year) | ¥8,296 million | ¥7,188 million | ↑ |
| Increase in Tangible and Intangible Fixed Assets (Full Year) | ¥450 million | ¥547 million | ↓ |
Business Details
The company's core segment, engaged in the manufacture and sale of Valve Actuator, Jack, Other Speed Increasers/Reducers, and Gears (Various Types). Products are supplied to a wide range of industries including thermal and nuclear power plants, oil and gas, railways and shipping, paper and pulp, chemicals, and industrial machinery. In FY2026 (ending March 2026), sales revenue was ¥7,513 million, accounting for approximately 76% of total company sales revenue of ¥9,884 million, making it the mainstay business. In terms of revenue disaggregation, all sales are recognized as goods (product sales) transferred at a point in time.
Recent Overview
Orders received expanded significantly by 15.4% year on year to ¥8,296 million, and segment profit surged 30.5% year on year.
In the Gear and Gear Equipment Business for FY2026 (ending March 2026), Valve Actuator (orders +14.5%, sales +11.3%), Jack (orders +10.1%, sales +3.7%), and Gears (orders +19.9%, sales +11.3%) all performed well. Other Speed Increasers/Reducers saw orders increase significantly by +21.9%, but sales diverged with a decline of -20.7%. The buildup in order backlog is expected to contribute to sales in subsequent periods. Segment profit increased substantially to ¥1,686 million from ¥1,292 million in the prior period. Sales to the major customer Seiwa Co., Ltd. were disclosed at ¥732 million (Gear and Gear Equipment).
Key Products
Growth Drivers
- Increase in orders for Valve Actuator for thermal power plants and oil and gas (up 14.5% year on year)
- Significant expansion of orders for Other Speed Increasers/Reducers for oil and gas and railways and shipping (up 21.9% year on year)
- Recovery in orders for Gear products for railways and shipping and industrial machinery (up 19.9% year on year)
- Medium- to long-term expansion in demand for power plants against the backdrop of expectations for nuclear power plant restarts
- Strengthening sales of electronic actuators and promoting overseas customer development
- Development of new customers for large, high-precision gears utilizing large-scale gear processing machines
- Buildup of order backlog through orders received of ¥8,296 million (exceeding sales revenue of ¥7,513 million), contributing to sales in the next period
Risks
- Price pressure from intensifying competition with domestic and overseas companies
- Increased costs due to rising prices of raw materials such as steel and non-ferrous metals
- Widening divergence between orders and sales for Other Speed Increasers/Reducers, with sales revenue down 20.7% year on year, and timing shifts in sales recognition due to construction delays and other factors
- Dependency risk on major customer Seiwa Co., Ltd. and associated sales volatility risk
- Growing uncertainty in the global economy due to geopolitical risks and reviews of U.S. tariff measures, and volatility in capital expenditure demand
- Demand volatility due to prolonged periodic inspection work at thermal and nuclear power plants
- Response to changes in asset efficiency as segment assets declined from ¥3,449 million in the prior period to ¥3,250 million
Last updated: June 29, 2026