Global industrial gases major Nippon Sanso Holdings (NSHD) plans to ramp up capital spending in its current financial year, with two major acquisitions in Australia and Spain being earmarked to support future growth.
Speaking during the company’s fourth quarter earnings call, executives confirmed that capital spending rose to around 11.2% of sales in FYE2025 and is set to climb further.
“Our capital spend as a percent of sales continues to improve and to get larger as a percentage,” said NSHD CFO Alan Draper. “Next year… we’ll continue to increase that.”
The group reported a capital spending backlog of around ¥140bn ($947m), slightly down from previous quarters, but management said completed projects would begin contributing to profitability this year. While new orders had softened slightly in Q4, NSHD is still seeing solid demand. “We have good opportunities in front of us,” Draper said.
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