Capacity Utilization to Weaken for Nabtesco’s Component Solutions but Expect Recovery From 2025

As a global leader in motion control technology, Nabtesco boasts the leading global and/or domestic market share with its main products in each of its segments. Nabtesco’s precision reduction gears are supplied to the big four industrial robotics companies, as well as major Chinese robotics players like Estun. The wide-moat company has a 60% global share in the RV reduction gear market for medium- to large-size industrial robots and we expect the business to continue to be the main top-line growth driver. The company is well positioned for a secular growth of industrial robot demand, driven by skilled labor shortage and need to increase production efficiency through automation.