TRUSCO NAKAYAMA CORPORATION
9830・Prime Market・Wholesale Trade
Factory Route
Core segment accounting for 65.5% of sales composition, serving wholesale to manufacturing and construction-related industries
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (Q1 FY2026 (ending December 2026)) | ¥56,957 million | ¥53,281 million (Q1 FY2025 (ending December 2025)) | ↑ |
| Ordinary income (segment profit) (Q1 FY2026 (ending December 2026)) | ¥3,961 million | ¥3,921 million (Q1 FY2025 (ending December 2025)) | ↑ |
| Sales composition ratio (Q1 FY2026 (ending December 2026)) | 65.5% | 67.3% (Q1 FY2025 (ending December 2025)) | ↓ |
| YoY change in sales (same quarter) | +6.9% | — | ↑ |
| YoY change in ordinary income (same quarter) | +1.0% | — | ↑ |
Business Details
A segment engaged in wholesale of indirect materials such as tools, work supplies, and environmental safety products, targeting a wide range of manufacturing sites including manufacturing and construction/building sites. Its strength lies in a rapid delivery system through 28 logistics centers and 30 inventory-holding branches nationwide, and it operates in-factory procurement services for users through MRO Stocker installations as well as Direct-to-User Delivery Service. Main customer channels include machine tool dealers, construction-related businesses, and welding material dealers.
Recent Overview
Sales rose 6.9%, but profit margin only slightly increased, weighed down by rising costs
In Q1 FY2026 (ending December 2026), sales in the Factory Route segment were ¥56,957 million (up 6.9% year on year). This was mainly driven by increased sales of environmental safety products and work supplies related to production plant operations. Meanwhile, ordinary income was ¥3,961 million (up 1.0% year on year), with profit growth limited relative to the sales increase. In January, the company established the SMC Tono Supplier Park Branch, expanding the number of inventory-holding branches to 30. Increased freight costs, personnel expenses, and expenses associated with the operation of the new core system "Paradise 4" are pressuring profit margins.
Key Products
Growth Drivers
- Increasing demand related to the operation of production plants, mainly for environmental safety products, hand tools, and work supplies
- Continued capture of in-factory procurement demand through expansion of MRO Stocker installations
- Deepening proposals for logistics cost reduction and expanding transactions through strengthening of the Direct-to-User Delivery Service (Niawase + Yuchoku)
- Strengthening the rapid delivery system and expanding the number of inventory items through 28 logistics centers and 30 inventory-holding branches nationwide (including the newly established SMC Tono Supplier Park Branch)
- Addressing diverse procurement needs through nationwide expansion of Yукuru (product pickup service) to 56 locations
- Capturing demand for BCP-response products through expanded disaster recovery agreements with municipalities and major companies (39 municipalities)
Risks
- Risk of business fluctuations centered on the manufacturing and automotive industries (concerns over shortages of imported raw materials due to Middle East tensions and prolonged adverse effects)
- Risk of the need to review existing products and supply chains due to structural changes in manufacturing driven by the spread of electric vehicles, etc.
- Risk of declining market advantage due to competitors strengthening logistics service functions
- Risk of write-downs in the event of unexpected sales slumps given large inventory holdings (merchandise of ¥70,906 million)
- Upward pressure on SG&A expenses due to rising personnel costs (base salary revision and increased housing allowance implemented in July 2025) and increased depreciation and commission fees associated with the operation of the new core system "Paradise 4"
Last updated: March 18, 2026