NIKKISO CO., LTD.

Business Details

The Industrial Segment consists of the Industrial Business (Liquefied Gas / Industrial Gas Related Equipment & Devices, Industrial Pumps & Systems, Precision Equipment) and the Aerospace Business (CFRP Molded Products for Commercial Aircraft). Its core products include cryogenic pumps and heat exchangers for LNG liquefaction and receiving terminals in North America, Europe, and Asia, as well as thrust reverser components (such as cascades) for commercial aircraft. As the core segment accounting for approximately 66% of consolidated revenue, segment profit in Q1 FY2026 (ending March 2026) improved substantially, up 82.3% year on year, driven by LNG-related orders exceeding expectations and increased production capture in the aerospace business.

Recent Overview

LNG orders exceeded expectations and aerospace turned profitable, driving Industrial Segment profit up 82.3% year on year

In Q1 FY2026 (ending March 2026), Industrial Segment revenue reached ¥36,552 million (up 23.8% year on year) and segment profit reached ¥3,109 million (up 82.3% year on year), a substantial profit increase. In the Industrial Business, LNG-related orders received reached ¥41,967 million (up 51.9% year on year), exceeding expectations, driven by steady execution of already-booked orders by the CE&IG Group and the effect of yen depreciation. The Aerospace Business turned around from a loss in the prior-year period to a profit of ¥452 million, driven by increased shipments amid an industry-wide production increase. Industrial Pumps & Systems also performed steadily, achieving higher revenue and profit.

Key Products

Growth Drivers

• Expanding capital investment demand in the LNG sector: continued active order intake for liquefaction and receiving terminal projects in North America, Europe, and Asia (orders received in Q1 FY2026 (ending March 2026) up 51.9% year on year)
• Profitability recovery in Industrial Pumps & Systems resulting from business structure reform effects
• Industry-wide production increase trend in the Aerospace Business (achieved a turnaround to profit in Q1 FY2026, ending March 2026) and increased shipments of the mainstay cascade products
• Expansion into new areas such as space industry-related LNG business (CE&IG Group)
• Continued technology and product development for the low-carbon/decarbonization market and continued establishment of an integrated business operation structure between the CE&IG Group and Japan
• Boosting effect on overseas revenue from yen depreciation

Risks

• Supply chain uncertainty due to U.S. tariff increases and U.S.-China tensions
• Risk of slowing growth as next-generation energy (hydrogen, ammonia, etc.) investment demand shifts toward LNG
• Impact on energy and petroleum product prices and supply chains from escalating tensions in the Middle East
• Uncertainty on the supply side in the Aerospace Business due to component supply delays and labor shortages
• Continued adjustment of capital investment in the electronic components market and intensifying competition in the Chinese market in the Precision Equipment field
• Pressure on Industrial Business profitability from increased fixed costs associated with establishing the CE&IG Group structure
• Costs of rebuilding the quality assurance system and reliability risk associated with the issue of unperformed pressure resistance inspections for some pump products