NIPPON THOMPSON CO., LTD.
6480・Prime Market・Machinery
Business
Nippon Thompson Co., Ltd. (IKO brand) is a specialized manufacturer of precision mechanical components, with needle roller bearings and linear motion guide equipment as its core products. The group, consisting of the Company and 14 consolidated subsidiaries, operates as a single business engaged in the manufacture and sale of Bearings and Mechanical Components. Major customers include manufacturers of electronics-related equipment such as semiconductor manufacturing equipment and mounting machines, machine tool manufacturers, and general industrial machinery manufacturers such as robotics and medical equipment makers. The Company maintains a global structure with sales and manufacturing bases in North America, Europe, China, and other Asian regions in addition to Japan. The overseas sales ratio reached 54.7% in FY2026 (ending March 2026), reflecting a structure that captures global demand.
Business Model
The company operates a vertically integrated model in which products are manufactured at domestic plants (Gifu Works, etc.) and at overseas production subsidiaries in Vietnam and China, then sold globally through sales subsidiary networks in the US, Europe, China, and Asia. Backed by the IKO brand's high technological capability and quality, the company supplies high-value-added products for high-precision applications such as semiconductor manufacturing equipment, machine tools, and robots, with a structure in which operating leverage during periods of increased sales and production expands profits. R&D expenses of ¥1,822 million were invested in FY2026 (ending March 2026), continuing new product development, materials research, and manufacturing technology research.
Company Strengths
Under the IKO brand—which stands for "Innovation, Know-how, Originality"—the Product Development Center, Technology Center, and Production Engineering Department collaborate to advance R&D. In FY2026 (ending March 2026), the company launched 11 new product items and brought high-value-added products to market, including the Lightweight Cross Roller Bearing LCRB, which achieves over 60% weight reduction. R&D expenses amounted to ¥1,822 million.
The company operates manufacturing and sales subsidiaries in the United States, Europe, China, Thailand, Vietnam, and other regions, with overseas sales reaching ¥34,504 million (54.7% overseas sales ratio) in FY2026 (ending March 2026). Its overseas manufacturing subsidiaries in Vietnam and China are utilized as strategic platforms, forming an optimal production system that includes local production for local consumption. In August 2025, the company opened an R&D center in China to strengthen its local responsiveness.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 66.2% and total net assets reached ¥83,184 million, reflecting a solid financial foundation. The company secured cash and cash equivalents of ¥22,968 million and reduced long-term borrowings by ¥4,647 million, advancing the reduction of interest-bearing debt. It maintains a stable funding structure combining internal funds, borrowings, and corporate bonds.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥68,260 million in FY2023 (ended March 2023) and declined for two consecutive years through FY2024 and FY2025, but FY2026 (ending March 2026) marked a clear turnaround with revenue of ¥63,031 million. Operating profit surged from ¥1,592 million in FY2025 to ¥4,102 million, and the operating margin recovered to approximately 6.5%. Supportive external factors included rising demand for semiconductor manufacturing equipment and mounting machines (domestic and China), as well as expanding demand from North American medical device and robotics applications. That said, the gap versus the FY2023 peak level (operating profit of ¥9,459 million) remains substantial, and the pace of future recovery will depend on European market conditions and foreign exchange trends. Separately, a correction to the accounting treatment of treasury stock disposal resulted in retained earnings being restated to ¥47,945 million (post-correction), but this had no impact on net income of ¥4,069 million for the period.
Growth Strategy
Under IKO's Medium-Term Management Plan 2026, the company is pursuing recovery in profitability through concentration on 'areas of strength' and reconstruction of its global operating framework
Concentrating management resources on high-value-added fields such as semiconductor manufacturing equipment, medical devices, and robotics, aiming to improve profitability by leveraging the competitive advantage of the IKO brand. The earnings recovery in FY2026 (ending March 2026) is consistent with this direction.
Strengthening sales and production systems in growth regions such as North America and Asia, and deepening a localized (produce-where-consumed) supply framework. The response to expanding demand for medical device and robotics applications in North America is believed to have contributed to results in FY2026 (ending March 2026).
Given a business structure with a high fixed-cost ratio, the company aims for substantial improvement in operating margin through expansion of sales scale. In FY2026 (ending March 2026), operating profit rose to approximately 2.6 times the previous fiscal year alongside a recovery in net sales, making the leverage effect evident.
Last updated: July 19, 2026