NADEX CO., LTD.

Business Details

Handled by Na-Dex Co., Ltd. (the Company) and its domestic consolidated subsidiaries. The segment operates four businesses: the Process Solutions Business, centered on resistance welding control equipment; the Factory Automation Business, which sells robots and FA systems through agency distribution; the System Integration Business, which provides custom-built production systems; and the Control Components Business, which sells electronic and electrical control components through agency distribution. Main customers are domestic automotive-related companies.

Recent Overview

Revenue declined due to lower sales of automotive production equipment, but profit increased owing to the disappearance of the prior period's provision for loss on order received, among other factors

In the Japan segment for FY2026 (ending March 2026), revenue declined significantly to ¥27,080 million (down 9.6% year on year) due to lower sales of production equipment for automotive-related companies. On the other hand, operating profit increased to ¥821 million (up 24.0% year on year), owing to a substantial reduction in the provision for loss on order received that had been recorded in the prior period. As a subsequent event, in May 2026 the Company made Robofull Co., Ltd. (acquisition cost of ¥445 million), a startup in the logistics and FA fields, a wholly owned subsidiary, initiating expansion into a new growth area.

Key Products

Growth Drivers

• Phased expansion of manufacturer functions and leveraging of the group's overall capabilities based on the medium-term management plan (final year FY2027 (ending April 2027))
• Strengthening total solution proposal capabilities to address customer issues such as labor shortages, rising labor costs, and environmental response
• New expansion into the logistics field and strengthening of the overall competitiveness of the Factory Automation Business through the acquisition of Robofull Co., Ltd. as a subsidiary
• Continued steady capital expenditure and R&D investment by automotive-related companies to address environmental and social issues
• Improved profitability through the reduction of the provision for loss on order received (¥95 million recorded in the prior period → ¥14 million in the current period)

Risks

• Risk of capital expenditure restraint due to sluggish domestic sales volumes at major automotive-related customers and a slowdown in electric vehicle (EV) demand
• Risk of continued decline in sales of production equipment for automotive-related companies (a 9.6% decrease in revenue was recorded in the current period)
• Risk of changes to capital expenditure plans by automotive-related companies due to the impact of US trade policy (tariffs)
• Pressure to increase selling, general and administrative expenses due to rising labor costs and manufacturing expenses
• Risk of re-recording a provision for loss on order received (¥94 million was recorded in the prior period)
• Risk of impairment of goodwill and intangible assets related to M&A targets such as Robofull Co., Ltd.
• Operational risk related to internal control systems, such as delays in financial closing processes at consolidated subsidiaries