NFK HOLDINGS CO.,LTD.
6494・Standard Market・Machinery
Industrial Furnace Combustion Equipment
The core business of the NFK Group, responsible for the manufacture and sale of various combustion equipment and industrial furnaces.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales | ¥1,888 million | ¥2,082 million | ↓ |
| Segment operating profit | ¥37 million | ¥1 million | ↑ |
| Sales to major customer (Toyota Motor Corporation) | ¥305 million | ¥444 million | ↓ |
| Depreciation | ¥10 million | ¥10 million | — |
| Goodwill amortization | – | – | — |
Business Details
The flagship segment of the NFK Group, undertaken by Nippon Furnace Kogyo Kaisha, Ltd. The main business consists of the design, manufacture, and sale of industrial furnaces, burners, and combustion equipment, providing energy-saving and low-NOx combustion technologies to a wide range of industries including steel, chemicals, and ceramics. The segment also handles maintenance and inspection services for delivered equipment as well as the supply of replacement parts, offering integrated services from design and manufacturing through to installation and maintenance. Toyota Motor Corporation is a major customer.
Recent Overview
Although large-scale automotive-related projects continued, sales decreased 9.3% year on year, while operating profit improved substantially.
For FY2026 (ending March 2026), sales in the Industrial Furnace Combustion Equipment Business were ¥1,888 million (down 9.3% year on year). Factors contributing to increased sales included the continuation of large-scale projects from automotive-related companies, the recovery of the environmental systems/petrochemical-related and industrial machinery equipment-related businesses which had declined in the prior period, and an increase in overseas orders in the parts division. These were offset by sluggish orders for boiler equipment and weakness in the Heat Recovery Burner System business for the steel industry, resulting in a decrease in sales. Operating profit improved substantially to ¥37 million (versus less than ¥1 million in the prior period).
Key Products
Growth Drivers
- Continuation of large-scale projects from automotive-related companies (sales to Toyota Motor Corporation of ¥305 million)
- Recovery in demand for environmental systems/petrochemical-related and industrial machinery equipment-related businesses
- Increase in overseas orders in the parts division
- Strengthened profitability through thorough order and profitability management and cost reduction (operating profit improved substantially from less than ¥1 million in the prior period to ¥37 million)
- Provision of integrated services for a wide range of industries based on energy-saving and low-NOx combustion technologies
Risks
- Risk of declining sales: Sales in the current period decreased 9.3% year on year to ¥1,888 million, with risk that the slump in boiler equipment and heat recovery burner systems (for the steel industry) will continue
- Customer concentration risk: Sales to Toyota Motor Corporation accounted for ¥305 million (approximately 16% of segment sales), making results susceptible to trends in capital expenditure in the automotive industry
- Risk of postponement or cancellation of large-scale projects: High dependence on specific projects leads to significant fluctuations in performance if projects are postponed or cancelled
- Risk of persistently high raw material prices: Persistently high raw material prices and the continued weak yen could cause costs to exceed budget in the industrial furnace division and elsewhere
- Demand volatility risk in the environmental systems/petrochemical division: Structural instability whereby divisional sales fluctuate significantly depending on the presence or absence of large-scale overseas projects
Last updated: June 26, 2026