Naikai Zosen Corporation
7018・Standard Market・Transportation Equipment
Shipbuilding Business
Core segment of Naikai Zosen, integrating New Shipbuilding and Ship Repair operations, accounting for approximately 99% of sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Sales | ¥46,497 million | ¥44,109 million | ↑ |
| Segment Profit | ¥4,262 million | ¥2,479 million | ↑ |
| Segment Assets | ¥30,539 million | ¥31,747 million | ↓ |
| Orders Received | ¥80,345 million | ¥47,985 million | ↑ |
| Order Backlog | ¥134,345 million | ¥100,497 million | ↑ |
| Export Sales | ¥19,644 million (export ratio 41.8%) | ¥15,692 million (export ratio 35.1%) | ↑ |
Business Details
A reporting segment that aggregates the New Shipbuilding Business and Ship Repair Business operated by the Company (Naikai Zosen Corporation). Under a two-plant system consisting of the Setoda Plant and the Innoshima Plant, the Company builds and repairs a wide variety of vessels including RORO ships, transport vessels, LNG-fueled ferries, and cargo ships. Major customers include the Acquisition, Technology & Logistics Agency (ATLA), CENTENNIAL SHIPPING S.A., SPRUCE NAVIGATION S.A., and Fuji Trans Corporation. The subsidiary Naikai Engineering Co., Ltd. supplements this segment through the Land-based and Service Business.
Recent Overview
Revenue increased due to delivery of 17 new vessels and completion of conversion work; order backlog expanded to ¥134,345 million, up 33.7% year on year.
In FY2026 (ending March 2026), the number of new vessels recognized as sales increased by 4 vessels, from 13 to 17, with 9 vessels delivered including LNG-fueled ferries and transport vessels. Sales from ship conversion work also increased significantly due to the completion of conversion projects. The yen's depreciation trend, productivity improvements, and cost reductions contributed to a substantial improvement in segment profit, which reached ¥4,262 million (up 71.9% year on year). Orders received totaled ¥80,345 million (up 67.4% year on year), driven by 9 new vessels (RORO ships and transport vessels) and others, and the order backlog expanded to ¥134,345 million (up 33.7% year on year), including 25 new vessels and others.
Key Products
Growth Drivers
- Securing a medium-term revenue base through an order backlog of ¥134,345 million (up 33.7% year on year)
- Improved profitability driven by the continued yen depreciation trend
- Strengthened cost competitiveness through ongoing efforts to improve productivity and reduce various expenses
- Expansion of construction capacity through capital investment utilizing government subsidies
- Expanded order opportunities by promoting the construction of high-value-added vessels such as LNG-fueled vessels and GHG-emission-reducing vessels
- Efficient production through continuous construction of sister ships leveraging the two-plant system (Setoda and Innoshima)
Risks
- Risk of rising manufacturing costs and deteriorating profitability due to continued increases in materials and equipment prices (including petroleum-related products such as paint and thinner) and labor costs
- Risk of continued wait-and-see order behavior among small and medium-sized shipowners due to undetermined procurement policies for new fuels (such as LNG)
- Risk of continued cautious ordering behavior as many forward orders have delivery dates three or more years out due to tight near-term berth availability across shipbuilders
- Risk of abrupt fluctuations in U.S. trade policy and foreign exchange rates (particularly affecting export-related operations)
- Risk of supply restrictions and price increases for crude oil and petroleum-related products due to prolonged tensions in the Middle East
- Risk of a downturn in the global economy due to geopolitical risks such as those related to Ukraine
Last updated: June 25, 2026