Strong order intake, but revenue recognition delayed by medium- to long-term projects
First written in FY2019-Q2. 6 of 16 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Nfk Holdings moved to the "Worse" side of this theme in 2024, 4 years after the typical company in this theme (2020).
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Industrial furnace combustion equipment-related business 784,722 △61.3 926,523 76.8」
In the industrial furnace business, orders received decreased substantially and revenue fell 9.3% year on year. Meanwhile, the order backlog increased, indicating continued fluctuations between order intake and revenue recognition. - FY2026-H1WorsenedAnnual report
「Revenue was ¥749 million, down 8.3% year on year, due in part to the company starting the period with an opening order backlog of ¥524 million at its principal subsidiary, 日本ファーネス株式会社, down ¥52 million year on year.」
Revenue decreased 8.3% year on year against the backdrop of a decline in the opening order backlog. - FY2025WorsenedAnnual report
「The company started the period under difficult conditions, with an opening order backlog of ¥576 million, down 47.1% year on year, due in part to the decline in new orders that had become pronounced since the previous fiscal year. Although it actively pursued new orders, including a ¥290 million large order from a major automotive company in June 2024, it was forced to operate under extremely difficult conditions, including the postponement of large projects expected to generate orders in the plant division.」
Although the company won large orders, the disclosure states that the opening order backlog had declined substantially and that large projects in the plant division had been postponed, indicating a worsening situation surrounding strong order intake and delayed revenue recognition. - FY2024WorsenedAnnual report
「During the consolidated fiscal year, orders received were ¥1,570,213 thousand, down 34.3% year on year, and the order backlog was ¥576,901 thousand, down 47.1% year on year.」
The explanation shifted from progress in orders and revenue driven by large projects to a situation in which both orders received and the order backlog had declined substantially. - FY2024-Q3WorsenedAnnual report
「Although the group had inquiries, including for overseas projects, business conditions remained extremely difficult, with the order backlog declining from ¥1.09 billion at the beginning of the period to ¥707 million at the end of the third quarter.」
Although there were inquiries, the order backlog had decreased by ¥383 million from the beginning of the period, shifting the emphasis from the previous explanation indicating strong order intake to an explanation of difficult conditions. - FY2024-Q1ReframedAnnual report
「Revenue was ¥512 million, up 8.4% year on year, due in part to the smooth progress of large industrial furnace-related projects ordered in the previous fiscal year and the company starting the period with an opening order backlog of ¥1,090 million, up ¥232 million year on year.」
The explanation shifted from delayed revenue recognition due to large medium- to long-term projects to revenue growth driven by the smooth progress of large projects ordered in the previous fiscal year and the increase in the order backlog. - FY2023AdvancedAnnual report
「Revenue was ¥2.157 billion, up 10.9% year on year, due in part to relatively large projects for overseas markets and the steady progress of large orders in Japan.」
The explanation shifted from delayed revenue recognition and lower revenue due to large medium- to long-term projects to revenue growth driven by the smooth progress of large projects. - FY2022WorsenedAnnual report
「The company started the period under somewhat difficult conditions, with an opening order backlog of ¥823 million, down ¥390 million year on year. Order-taking activities remained difficult due to the declaration of a state of emergency and the implementation of priority preventive measures, among other actions, in response to the spread of COVID-19.」
The decline in the order backlog and difficult order-taking conditions are cited as factors behind the annual revenue decline. - FY2021RestatedAnnual report
「In addition to an opening order backlog of approximately ¥1,214 million, relatively large projects for which inquiries had been received since the previous fiscal year proceeded to order intake. However, other orders, including maintenance services, remained in a difficult situation due to the spread of COVID-19, among other factors.」
Although orders for large projects supported revenue, other orders, including maintenance services, were described as being in a difficult situation. - FY2020RestatedAnnual report
「Relatively large projects from automotive-related companies that had continued from the previous fiscal year progressed smoothly, among other factors.」
The disclosure states that, in addition to the time required for large and medium- to long-term projects to progress from order intake to revenue recognition, automotive-related projects progressed smoothly during the fiscal year. - FY2020-Q3ReframedAnnual report
「As large projects and other projects progressed smoothly, revenue was ¥1,987 million, up 30.6% year on year.」
The previous explanation concerning delayed revenue recognition from medium- to long-term projects was no longer presented; instead, the explanation shifted to revenue growth driven by the smooth progress of large projects. - FY2020-Q2RestatedAnnual report
「Relatively low-margin large projects accounted for a substantial portion of revenue, among other factors.」
The fact that low-margin large projects accounted for a substantial portion of revenue continues to be cited as a loss factor. - FY2020-Q1Pressure on earnings from low-margin large projectsAnnual report
「Relatively low-margin large projects accounted for a substantial portion of revenue, among other factors.」
In addition to the previous explanation that revenue recognition was delayed by large projects, the company identified the fact that low-margin large projects accounted for a substantial portion of revenue as a loss factor this time. - FY2019RestatedAnnual report
「Although order intake from automotive-related companies remained solid, the large number of relatively large projects, including projects for which revenue was recognized in the following fiscal year or later, resulted in revenue of ¥603 million for the consolidated fiscal year, down 18.6% year on year.」
The pattern of solid order intake but revenue recognition being deferred to the following fiscal year or later due to relatively large medium- to long-term projects was also evident for the full fiscal year. - FY2019-Q3RestatedAnnual report
「Products for export-related companies continued to perform well, and order intake for other products also remained solid. However, because the company had a relatively large number of medium- to long-term projects, including some fairly large projects, revenue was ¥1,522 million, down 13.1% year on year.」
Although order intake was described as solid for products for export-related companies and other products, the company continued to explain that the large number of relatively large medium- to long-term projects delayed revenue recognition and reduced revenue. - FY2019-Q2First statedAnnual report
「Order intake remained solid, particularly for products for export-related companies, but because the company had a relatively large number of medium- to long-term projects, including some fairly large projects, revenue was ¥960 million, down 16.9% year on year.」
Although order intake was described as solid, the company attributed the decline in revenue to the large number of relatively large medium- to long-term projects.