Nippon Gear surged in morning trading as investors welcomed the upward revision to its April–September 2026 earnings forecast. The current share price rose to around ¥1,192, after reaching as high as ¥1,269.
Nippon Gear upwardly revised its standalone forecast for the April–September 2026 period, raising its ordinary profit forecast from the previous ¥930 million to ¥1.3 billion. The revision was attributed to strong sales of gear-system products for nuclear power plants in Japan and overseas, as well as strong sales of repair parts for overseas oil and gas plants.
The expected increase in profit is expected to be supported by profit secured from large-scale nuclear power plant projects and higher repair-parts sales, while revenue is expected to exceed the initial plan. However, uncertainty remains over project progress, the order environment and the timing of revenue recognition from the third quarter onward, so the full-year forecast was left unchanged.
Full-year ordinary profit is expected to reach a record high, based on the previous forecast of ¥2.56 billion, up 2.1% year on year. The market will continue to focus on progress in nuclear-related projects and trends in demand for repair parts.
Reporting assistance was provided by Stock Voice, a stock-market information program, and this is also believed to have influenced the dissemination of information to individual investors. Nippon Gear cited the upward revision to its initial forecast as the reason for the surge in its share price.