TSUBAKI NAKASHIMA CO., LTD.
6464・Prime Market・Machinery
Business
Tsubaki Nakashima Co., Ltd. was founded in 1934 and is headquartered in Nara, specializing in the manufacture of precision balls and precision rollers. Its Precision Components Business, which manufactures and sells over 20,000 types of precision balls including Precision Balls (Steel Balls), Ceramic Balls, and Carbide Balls, Glass Balls, Plastic Balls, accounts for 98.7% of revenue. Major customers include leading bearing manufacturers such as AB SKF (20.4% of revenue) and SCHAEFFLER (10.3%), and the company supplies parts to a wide range of industries including automobiles, machine tools, semiconductor manufacturing equipment, and wind power generation. It is a global enterprise with manufacturing and sales sites in 11 countries across Japan, the United States, Europe (Italy, Poland, Slovakia, etc.), and Asia (China, Thailand, India).
Business Model
Leveraging inventory of over 20,000 types of precision balls, the company competes on its ability to fulfill short-lead-time orders, generating revenue through continuous supply of components to major bearing manufacturers. Manufacturing is based on a make-to-stock system, pursuing economies of scale through a global manufacturing network. Ceramic Balls are positioned as a strategic product for EVs, semiconductor manufacturing equipment, and wind power generation, with efforts to enhance their value-added. Of revenue of ¥69,837 million, 98.7% is attributable to the Precision Components Business.
Company Strengths
The company manufactures and sells a wide range of over 20,000 types of precision balls, including Precision Balls (Steel Balls), Ceramic Balls, Carbide Balls, Glass Balls, and Plastic Balls, with a strength in short lead-time delivery leveraging abundant inventory. Its product diversity, capable of serving a wide range of industries such as automotive, machine tools, medical, and optical communications, contributes to a stable customer base.
Since its founding in 1934, the company has accumulated over 90 years of expertise and experience in the field of precision processing. It operates manufacturing and sales sites in 11 countries across Japan, the United States, Europe, and Asia, maintaining a global footprint capable of responding to customers' shifts in overseas production. Capital expenditure in FY2025 (ending December 2025) amounted to ¥1,882 million, with continued investment in equipment renewal and bottleneck processes.
In FY2025 (ending December 2025), free cash flow (operating cash flow plus investing cash flow) was ¥11,642 million, an improvement of ¥10,569 million from the previous period. This was driven by a decrease in inventories (¥12,685 million) and proceeds from business divestiture (¥2,048 million), with cash and cash equivalents increasing to ¥34,633 million. The interest coverage ratio also improved from 3.3 times in the previous period to 6.6 times.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has been on a declining trend since peaking at ¥79,036 million in FY2022 (ended December 2022), falling to ¥69,837 million in FY2025 (ended December 2025). In Q1 FY2026 (ending December 2026), revenue declined further to ¥17,784 million (down 2.7% year on year), continuing the downward trend. On the profitability side, after recording a large-scale loss in FY2025 (ended December 2025)—an operating loss of ¥22,336 million and a net loss of ¥27,214 million—Q1 FY2026 (ending December 2026) turned profitable, with operating profit of ¥1,127 million and quarterly profit attributable to owners of the parent of ¥308 million, primarily driven by a gain on sale of fixed assets of ¥1,041 million. EBITDA also improved to ¥2,004 million (up 62.1% year on year). However, external factors are intertwined, including the downturn in the European automotive industry, rising energy costs due to the situation in the Middle East, and the effects of yen depreciation, so continued monitoring is needed to confirm whether the recovery in core-business profitability is genuine. The full-year forecast (revenue of ¥70,000 million, operating profit of ¥2,500 million) remains unchanged from the figures announced on February 13, 2026.
Growth Strategy
Under the medium-term management plan (FY2025–FY2029), the company aims to achieve revenue of ¥87,000 million and operating profit of ¥10,000 million in FY2029 (ending December 2029) through cost reform and concentrated investment in growth markets.
The company aims to reduce fixed costs and improve capital efficiency through optimization of global manufacturing sites, exemplified by the partial sale of TN GEORGIA fixed assets (implemented in February 2026). In Q1 FY2026 (ending December 2026), the company recorded a gain on sale of fixed assets of ¥1,041 million, and secured positive investing cash flow of ¥781 million.
To address the prolonged downturn in the European automotive industry, the company is promoting structural reform of its European business's earnings structure and a shift in its customer and product mix. In Q1 FY2026 (ending December 2026), the impact of the European downturn continued to act as a factor reducing revenue, and the effects of the reform are expected to take time to materialize.
The company aims to reduce its dependence on the automotive industry and diversify its revenue sources through the launch of new products in the ceramics business and entry into growth markets such as EVs, semiconductor manufacturing equipment, and wind power generation. This is positioned as a core initiative of the medium-term management plan (2025–2029), but quantitative progress disclosure remains limited at this stage.
The company is promoting procurement and production cost reduction measures based on the medium-term management plan. In Q1 FY2026 (ending December 2026), inventory decreased by ¥1,195 million compared to the end of the previous fiscal year, confirming improvement in inventory management. Amid continued pressure from rising labor costs, fuel prices, and other expenses, the continuation of cost reduction measures is essential.
Last updated: July 17, 2026