NOK’s sealing business drives profit growth in Q1 FY2026

Japanese industrial conglomerate NOK Corp. reported a 5.5% year-on-year increase in consolidated sales to Yen181.24 billion (€440 million) for the first quarter of fiscal year 2026, which began on 1 April. Operating income for the three months ending 30 June rose 9.3% to Yen7.65 billion, driven primarily by higher sales and favorable foreign-exchange gains. The group’s Sealing business unit was the standout performer, with sales climbing 7.8% to Yen98.5 billion and operating income surging 47.5% to Yen9.64 billion. Automotive sales saw a slight decline due to reduced production volumes at Japanese automakers, though sales to general industrial machinery customers grew, particularly in construction machinery sectors in Japan and China. NOK attributed the improved profitability to increased sales, progress in price revisions, and cost management despite higher fixed expenses, including personnel costs. The Electronic Components business reported an 11.2% year-on-year sales increase to Yen81.10 billion but widened its operating loss to Yen2.23 billion from Yen121 million in the prior-year quarter. Sales growth in this segment was supported by foreign-exchange effects and higher actual sales volumes in smartphones, automotive batteries, and hard disk drives. However, the segment’s losses deepened due to higher fixed costs and the appreciation of local currencies against the US dollar at Asian production bases. The ‘Other Business’ segment saw sales plummet 77.8% to Yen1.68 billion and operating income drop 61.0% to Yen226 million, a decline NOK attributed to a reorganisation of business segments in the first quarter. Prior-year figures were reclassified to align with the new segment structure.