ENVALITH
株式会社南陽 logo

NANYO CORPORATION

7417Standard MarketWholesale Trade

株式会社南陽 logo
NANYO CORPORATION7417

Construction Machinery Business

Core earnings segment of the Nanyo Group, centered on construction machinery sales and rental

PeriodCurrentPreviousChange
Sales (External Customers)¥14,390 million¥13,673 million
Segment Profit¥2,118 million¥1,894 million
Segment Assets¥15,566 million¥14,901 million
Depreciation¥1,944 million¥1,861 million
Increase in Property, Plant and Equipment and Intangible Assets¥2,311 million¥2,051 million

Business Details

A segment engaged in the sale and rental of general civil engineering machinery, industrial vehicles, and related equipment. In the sales division, the company is strengthening the expansion of high-margin products related to infrastructure repair and enhancing proposal-based sales tailored to customer needs. In the rental division, focus is on capturing private-sector construction demand, which remains strong in some regions. As the flagship segment accounting for approximately 39% of the Group's external customer sales, it achieved increased revenue and profit in FY2026 (ending March 2026).

Recent Overview

Increased revenue and profit despite headwinds in public and private construction demand, led by the rental division

In FY2026 (ending March 2026), the segment continued to face a challenging environment, including sluggish purchasing sentiment due to persistently high product prices, a decline in demand for public and private construction, and a shortage of construction machinery operators. On the other hand, efforts to strengthen sales of high-margin products related to infrastructure repair and to capture rental demand for private construction, which remained strong in some regions, proved successful, resulting in sales of ¥14,390 million (up 5.2% year on year) and segment profit of ¥2,118 million (up 11.8% year on year), achieving increased revenue and profit.

Key Products

product
Construction Machinery Sales

Strengthening the expansion of high-margin products related to infrastructure repair and enhancing the lineup of price-competitive products, while promoting proposal-based sales tailored to customer needs. The company continues to pursue new market development even as sluggish purchasing sentiment persists due to persistently high product prices.

service
Construction Machinery Rental

Focus on capturing private-sector construction demand, which remains strong in some regions. Going forward, the company plans to promote efficiency through the reorganization of sales areas and to build a system for providing high-quality services.

product
Used Industrial Vehicle Trading

A trading business for used vehicles, including the recognition of disposal gains associated with the renewal of rental machinery. Inter-segment transactions are also conducted based on prevailing market prices.

Growth Drivers

  • Strengthening sales of high-margin products such as infrastructure repair-related products
  • Capturing rental demand for private construction in some regions
  • Expanding sales of new products related to social infrastructure repair and developing new markets
  • Building an efficient and high-quality service provision system through reorganization of the rental division's sales areas
  • Expected recovery in public construction demand due to public investment aimed at national resilience enhancement, etc.

Risks

  • Continued sluggish purchasing sentiment among customers due to persistently high product prices
  • Suppressed demand due to shortage of construction machinery operators
  • Decline in public and private construction demand
  • Deteriorating economic conditions due to US tariff policy and heightened geopolitical risk
  • Increased operating costs due to renewal of aging equipment, etc.

Last updated: June 19, 2026