NIPPON GAS CO.,LTD.
8174・Prime Market・Retail Trade
LP Gas Business
Driving customer base expansion and platform development as the largest LP gas operator in the Kanto region
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (external customers) | ¥90,829 million | ¥89,173 million | ↑ |
| Segment profit (gross profit) | ¥50,168 million | ¥49,733 million | ↑ |
| LP Gas Business gross profit | ¥45,398 million | ¥45,549 million | ↓ |
| Gross profit from equipment, installation, platform, etc. | ¥4,769 million | ¥4,183 million | ↑ |
| Number of customers (period-end) | 1,051 thousand | 1,030 thousand | ↑ |
| LP gas sales volume - residential | 181 thousand tons | 179 thousand tons (178 thousand tons) | ↑ |
| LP gas sales volume - commercial | 106 thousand tons | 109 thousand tons | ↓ |
| Segment assets | ¥68,540 million | ¥68,501 million | — |
Business Details
Centered on the sale of residential and commercial LP gas, the segment also sells and installs gas equipment, housing equipment, hybrid water heaters and other energy solutions, and provides a platform (filling, delivery, safety, and systems) for other operators. With a customer base of approximately 1.05 million, the segment drives industry consolidation while diversifying revenue through the expansion of equipment sales and safety service contracts. Segment sales of ¥90,829 million account for approximately 43.6% of consolidated sales, making this the core segment.
Recent Overview
Segment profit rose slightly on continued net customer growth and strong equipment sales, while commercial LP gas margins narrowed
In FY2026 (ending March 2026), the number of customers expanded to 1,051 thousand, up 21 thousand from the end of the prior fiscal year. Residential LP gas profit increased due to higher sales volume, while commercial profit was affected by margin compression from raw material price fluctuations, resulting in a slight decrease of ¥150 million in gross profit for the LP Gas Business overall. Equipment, installation, and platform businesses performed well, with gross profit rising ¥585 million to ¥4,769 million, driven by a 36% year-on-year increase in hybrid water heater unit sales and expansion of safety service contracts. Through M&A, the company took over customers from the largest number of companies since data collection began. Goodwill balance increased to ¥1,525 million (from ¥1,146 million in the prior fiscal year).
Key Products
Growth Drivers
- Continued monthly net increase in customers through focus on detached houses and family-oriented multi-unit housing (1,051 thousand at the end of FY2026, ending March 2026)
- Expansion of equipment and energy solutions sales centered on hybrid water heaters (unit sales up 36% year on year)
- Expansion of safety service contract volume and operational efficiency improvements amid labor shortages
- Advancement of industry consolidation (the largest number of M&A deals since data collection began, including the new consolidation of Tokyo Energy Alliance and others)
- Increased revenue per customer through expansion of housing-related services such as high-pressure drain cleaning and air conditioner cleaning
- Expansion of the platform business, including the takeover of customers from exiting operators
Risks
- Risk of margin compression in commercial LP gas sales due to raw material price fluctuations (commercial sales volume down 2.1% and margin compression also occurred in FY2026, ending March 2026)
- Sluggish growth in residential and commercial gas sales volume due to high temperatures and progress in energy conservation
- Rising delivery and safety operation costs due to the declining birthrate, aging population, and labor shortages
- Structural long-term decline in LP gas demand amid progress in decarbonization
- M&A and integration costs and goodwill amortization burden associated with industry consolidation (goodwill balance of ¥1,525 million at the end of FY2026, ending March 2026)
- Rising raw material procurement costs due to geopolitical risks such as escalating tensions in the Middle East
Last updated: June 19, 2026