NIPPON SHARYO,LTD.

Business Details

A business that manufactures and sells trains and railcars. It handles a wide range of vehicle types, including the N700S Shinkansen Trains and 315 series trains for JR Central, trains for the Tokyo Metropolitan Bureau of Transportation, and trains for Nagoya Railroad. The consolidated subsidiary Nissha Engineering Co., Ltd. handles parts manufacturing and service provision. The parent company, Central Japan Railway Company (JR Central), is the primary customer, and the segment supplies products to public and private railway operators both within and outside the group. Note that the U.S. subsidiary NIPPON SHARYO MANUFACTURING, LLC completed liquidation in March 2026 and was excluded from the scope of consolidation.

Recent Overview

Profit increased 67.8% year on year on higher sales to public and private railways and a sharp rise in orders received.

In FY2026 (ending March 2026), net sales in the Rolling Stock Business were ¥48,556 million (up 8.5% year on year), and segment profit improved substantially to ¥4,589 million (up 67.8% year on year). In addition to the N700S and 315 series for JR Central, sales of vehicles for public and private railways increased. Orders received expanded sharply to ¥88,383 million (up 77.4% year on year), and the order backlog reached ¥142,618 million (up 38.7% year on year). Note that the U.S. subsidiary NIPPON SHARYO MANUFACTURING, LLC completed liquidation in March 2026 and was excluded from the scope of consolidation.

Key Products

Growth Drivers

• Increased sales of vehicles for public and private railways (net sales in the current period rose 8.5% year on year to ¥48,556 million)
• Orders received expanded sharply by 77.4% year on year to ¥88,383 million, securing a high order backlog of ¥142,618 million
• Continued response to rolling stock replacement demand from railway operators (N700S and 315 series for JR Central, vehicles for the Tokyo Metropolitan Bureau of Transportation and Nagoya Railroad, etc.)
• The Rolling Stock Business's share of the order backlog rose to 71.5% (from 63.0% in the prior period), strengthening the medium- to long-term sales base
• Differentiation and technology development promotion through the next-generation brand N-QUALIS

Risks

• Since the business is primarily order-made production with large order units, changes in product mix significantly affect profit margins from year to year
• Risk that fluctuations in raw material prices will significantly affect operating results
• High dependence on sales to Central Japan Railway Company (JR Central) (sales to JR Central in the current period were ¥30,870 million), with performance affected by the parent company's capital expenditure trends
• Continued repayment burden on long-term borrowings (balance of ¥13,941 million, including the portion due within one year) associated with the transfer of factory assets to the parent company
• Geopolitical risks, such as the intensifying situation in the Middle East, could affect next-period performance, and a decline in profit is forecast for FY2027 (ending March 2027)