Nippon Sanso reports modest reductions in Q1, attributed to lower sales volumes
In the first quarter of its 2026 fiscal year, Nippon Sanso Holdings (NSHD) reported a consolidated revenue of ¥314.8bn, marking a 4.4% decrease year-on-year. This decline is equivalent to approximately $2.11bn, using the end-July exchange rate of ¥1 = $0.0067.
The operating income for NSHD decreased 5.1% to ¥45.5bn, which is around $305m. Similarly, the core operating income fell 5.7% to ¥45.6bn, also equivalent to approximately $305m.
The decline in revenue can be attributed to a decrease in sales of gas-related equipment. However, electronics-related equipment sales increased due to medium and large projects.
Despite the weaker demand, continued price discipline and productivity measures helped mitigate some of the impact, according to the company. In Japan, gas shipments including air separation gases were lower for NSHD.
Price management and reduced electricity costs supported segment income in Japan for NSHD. These measures helped offset some of the revenue loss from the decline in gas-related equipment sales.
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In conclusion, while NSHD reported a decrease in consolidated revenue for Q1 2026, the company's continued focus on price discipline and productivity measures, as well as its success in electronics-related equipment sales, indicate a resilience in the face of weaker demand.
