NAGOYA ELECTRIC WORKS CO.,LTD.
6797・Standard Market・Electric Appliances
Business
Nagoya Electric Works, since developing Japan's first remotely operated electronic information board in 1966, has been a social infrastructure specialist consistently engaged in the "collection, processing, and provision of information" related to road traffic, including LED Information (Road/River, etc.) Systems, Tunnel Disaster Prevention Systems, Weather & Disaster Prevention Monitoring Systems, and Variable Regulatory Sign Systems. Its main customers are road administrators such as the Ministry of Land, Infrastructure, Transport and Tourism, the various expressway companies (East Nippon, Central Nippon, and West Nippon), and local governments, with demand from public-sector clients accounting for the majority of sales. Its consolidated subsidiary, Infomex Matsumoto Co., Ltd., handles GPS Solar-Powered Traffic Signals / LED Signage and other products, allowing the group to broadly cover the road traffic safety field. For FY2026 (ending March 2026), net sales were ¥17,307 million and the order backlog stood at ¥16,704 million.
Business Model
The company wins orders through bidding and negotiated contracts from the Ministry of Land, Infrastructure, Transport and Tourism, expressway companies, local governments, and others, providing an integrated, made-to-order business model that spans manufacturing at its own plants (Miwa Plant and Shippo Plant) through on-site installation and maintenance management. Revenue is recognized on a percentage-of-completion basis, with the order backlog underpinning revenue in subsequent periods. The company continues to invest ¥817 million in R&D and ¥345 million in capital expenditure, securing earnings both by winning new orders through proposals for new systems and by capturing demand for maintenance and renewal of existing infrastructure.
Company Strengths
Since delivering Japan's first remotely operated electric information board to the Ministry of Construction in 1966, the company has deepened its technology in fields such as LED road information display boards, tunnel disaster prevention, and weather monitoring. It has obtained ISO9001, ISO14001, ISO45001, and ISO27001 certifications, establishing management systems for quality, environment, safety, and information security. The company has built up a track record and relationships of trust with government customers that competitors find difficult to replicate in a short period.
As of the end of FY2026 (ending March 2026), the order backlog stood at ¥16,704 million (up 0.3% year on year), while orders received were ¥17,356 million (up 6.9% year on year), showing an increasing trend. With the order backlog accumulated to a level roughly comparable to net sales, the structure allows for a high degree of visibility into revenue for the following period, underpinning stability for investors.
As of the end of FY2026 (ending March 2026), total net assets were ¥23,990 million and total liabilities were ¥5,246 million, resulting in an equity ratio of approximately 82%. Short-term and long-term interest-bearing debt is effectively zero, and the company maintains a policy of funding working capital, capital expenditure, and M&A entirely through internal funds. Cash and deposits stood at a healthy ¥7,539 million, indicating extremely low financial risk.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥17,380 million in FY2022 and has since hovered around the ¥17,000 million level, with FY2026 (ending March 2026) revenue at ¥17,307 million (up 0.3% year on year), maintaining a flat trend. Operating profit, on the other hand, plunged 36.4% from ¥2,752 million in FY2025 (ending March 2025) to ¥1,749 million in FY2026 (ending March 2026). The main causes were an increase in cost estimates due to construction period extensions and a rise in material costs due to inflation, with cost of sales increasing from ¥11,354 million in the previous period to ¥12,316 million. Amid continued high levels of material and labor costs as an external factor, the company forecasts a further decline in profit for FY2027 (ending March 2027), with revenue of ¥16,000 million and operating profit of ¥660 million. Operating cash flow improved significantly to ¥3,872 million (versus ¥433 million in the previous period), but this was due to progress in the collection of trade receivables (an increase of ¥2,507 million), and should be evaluated separately from any recovery in profit levels.
Growth Strategy
Transforming from a signage manufacturer into a comprehensive road traffic safety equipment company, creating value in new mobility and disaster prevention fields
From FY2026 (ending March 2026), the segment name was changed from "Information Equipment Business" to "Social Infrastructure Business" to clarify business strategy. The company declared its transformation from an information board manufacturer into a comprehensive equipment company protecting road traffic safety, and is promoting expansion into disaster prevention/mitigation solutions and new mobility fields such as autonomous driving.
The company continued its new system proposal activities, achieving orders received of ¥17,356 million in FY2026 (ending March 2026), up 6.9% year on year. It continues to secure new projects while leveraging its existing customer base of expressway companies and government agencies. However, as projects grow larger and construction periods lengthen, the volume of projects carried over to the following period is expected to increase, meaning it will take time for these to convert into sales.
Based on a resolution of the Board of Directors in May 2025, the company introduced an employee stock delivery trust plan for employees of the company and its consolidated subsidiary Infomex Matsumoto, effective from FY2026 (ending March 2026). The plan aims to foster a sense of belonging and participation in management among employees and raise awareness of business performance and share price, thereby enhancing corporate value over the medium to long term. As of the fiscal year-end, the trust account held 421,100 shares.
Marking the 80th anniversary of the company's founding, the company is promoting new product challenges built on the experience and technology it has cultivated over many years in the road traffic safety field. However, increased costs for new products aimed at future investment have been explicitly identified as a factor pressuring profit in FY2027 (ending March 2027), indicating the company is in an investment phase. A commemorative dividend (¥5) for the 80th anniversary is also planned for FY2027 (ending March 2027).
Last updated: July 19, 2026