NITTO KOGYO CORPORATION

Business Details

Operated by the Company itself along with Shin-Aichi Electric Manufacturing Co., Ltd., Tempearl Industrial Co., Ltd., Nankai Densetsu Co., Ltd., Taiyo Electric Manufacturing Co., Ltd., EM Solutions Co., Ltd., ECAD Solutions Co., Ltd., Nitto Kogyo (China) Co., Ltd., Gathergates Group Pte Ltd, and others. In addition to manufacturing and selling distribution boards, cabinets, breakers, switches, parts, etc., the segment provides construction and services for information and communication networks and electrical facilities. With corporate capital expenditure demand as its main customer base, it is the largest segment, accounting for approximately 61% of the Group's total net sales. Net sales for FY2026 (ending March 2026) full year were ¥119,877 million.

Recent Overview

Capturing capital expenditure demand and pre-standard-change rush demand, both net sales and operating profit increased.

In FY2026 (ending March 2026), sales of high-voltage receiving equipment increased due to solid corporate capital expenditure demand and pre-standard-change rush demand, resulting in segment net sales of ¥119,877 million (up 4.9% year on year) and segment operating profit of ¥11,306 million (up 10.3% year on year). The Seto Plant, a smart factory leveraging DX, became fully operational, and the Company developed OCP ORV3 compliant system racks for next-generation AI infrastructure. Meanwhile, the Construction & Services division saw a slight decline in sales due to the absence of large-scale projects. For FY2027 (ending March 2027), segment net sales are planned at ¥131,000 million (up 9.3% year on year).

Key Products

Growth Drivers

• Increase in sales of high-voltage receiving equipment due to solid corporate capital expenditure demand and pre-standard-change rush demand
• Improved profitability due to price revision effects and improved project pricing
• Strengthened development and production structure for next-generation AI infrastructure system racks (OCP ORV3 compliant) to respond to robust data center demand (construction of the second plant at the Tochigi Nogi Plant)
• Expansion of cabinet orders and improved production efficiency utilizing the Smart Order System through the smart factory conversion of the Seto Plant
• Strengthened design, development, and production collaboration among group companies including Tempearl Industrial Co., Ltd., expanding and strengthening the business structure
• Increase in renewable energy installation construction projects and building the foundation of the environment-related products business including EV/PHEV Charging Equipment (Pit-QC Series)
• Expansion of overseas business through promotion of globalization (joint seminars and spec-in activities with alliance partners)

Risks

• Constraints on order intake and construction capacity in the Construction & Services division due to persistent labor shortages at construction sites
• Risk of a decline as a rebound from pre-standard-change rush demand (demand for high-voltage receiving equipment having run its course)
• Risk of weakening in the number of private non-residential buildings and slowdown in capital expenditure demand
• Risk of rising procurement costs for resin materials, etc., and supply chain disruption due to escalating tensions in the Middle East
• Risk of economic downward pressure due to the impact of US trade policy (tariffs, etc.)
• Profit margin pressure due to increases in raw material, logistics, and labor costs
• Geopolitical risk and foreign exchange fluctuation risk at overseas subsidiaries (China, Southeast Asia)