Kyosan Electric Manufacturing Co.,Ltd.

Business Details

Engaged in the production and sale of Railway Signaling Systems (ATC ground equipment, electronic interlocking devices, platform screen doors, etc.) and Road Traffic Control Systems (traffic signal controllers, traffic signal lights, etc.). Main customers are domestic railway operators and local governments, with expansion into overseas markets including India and Europe. In FY2026 (ending March 2026), the segment's share of consolidated net sales was approximately 85.7%, further strengthening its position as the Group's core segment.

Recent Overview

Growth in orders, sales, and profit together drove record-high sales for the second consecutive period

In FY2026 (ending March 2026), all key indicators exceeded the prior period: orders received of ¥82,559 million (up ¥16,163 million year on year), net sales of ¥79,781 million (up ¥8,653 million), and segment profit of ¥11,950 million (up ¥2,229 million). Contributing factors included orders for ATC and interlocking devices for Osaka Metro and interlocking devices for Nagoya Municipal Subway, as well as sales of signaling equipment for the Eastern Dedicated Freight Corridor in India and domestic platform screen doors. Road Traffic Control Systems also saw favorable orders and sales in major metropolitan areas. For FY2027 (ending March 2027), the segment plans net sales of ¥75,100 million, and will transfer the power supply unit business for railway signaling systems from the Power Electronics Business division to improve production efficiency.

Key Products

Growth Drivers

• Continued capture of demand for renewal of signaling equipment and ATC systems for domestic railway operators
• Increased orders driven by expanding adoption of platform screen doors (platform doors)
• Demand for LED conversion of traffic signal lights (replacement demand following the end of incandescent bulb production in March 2028)
• Expansion of orders in overseas markets, mainly India and Europe
• Expansion of customer value through introduction of new products such as GOA2.5 automated train operation and radio-based train control systems
• Sales expansion of maintenance-work-reducing products leveraging CBM (condition-based maintenance) for railway signaling equipment
• Improved production efficiency through integrated management from order receipt to delivery following the transfer of power supply units for Railway Signaling Systems

Risks

• Pressure on consolidated operating profit from expansion of company-wide costs due to increases in personnel expenses and SG&A expenses (company-wide cost allocation of ¥5,108 million in FY2026, ending March 2026)
• The FY2027 (ending March 2027) net sales plan of ¥75,100 million is below the FY2026 (ending March 2026) actual of ¥79,781 million, posing a short-term sales decline risk
• Risk of construction delays and cost overruns in overseas projects (such as in India)
• Uncertainty in the business environment due to geopolitical risks and overseas policy trends
• Risk that deepening of production management enhancement and lead time reduction measures may not proceed as planned