NEC Corporation Due Diligence

Run due diligence on NEC Corporation: check compliance and get alerts when suppliers change.

Japan · www.nec.com · 20 vendors

NEC Corporation is a Japanese multinational information technology and electronics company headquartered in Tokyo, Japan. It provides IT and network solutions, including cloud computing, artificial intelligence, IoT platforms, and telecommunications equipment and software to businesses, communication service providers, and government agencies. The company also focuses on social infrastructure, offering solutions for public safety, digital government, and biometric authentication.

Resilience scores

Technology vendors

Services catalogue

29 services in catalogue across 8 categories; runs on 20 sub-vendors.

Insights

Last updated 2026-07-13 · revision 14

20 direct vendors, 221 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

12 in-scope frameworks identified; showing 3.

GDPR (source) — Evidence found

Evidence: https://www.nec.com/en/global/privacy/index.html, https://www.nec.com/en/global/cookies/index.html, https://www.nec.com/en/global/solutions/biometrics/index.html

APPI — Evidence found

Evidence: https://www.nec.com/en/global/privacy/index.html, https://www.nec.com/en/global/about/index.html

Export Control Regulations — No public evidence

Evidence: https://www.nec.com/en/global/corporate/governance/index.html, https://www.nec.com/en/global/solutions/5g/index.html

Financials

Three-year financials

Financial Resilience Score: 8/10

NEC Corporation demonstrates strong financial resilience, driven by a significant profitability transformation over the past several years. Non-GAAP operating profit has grown from ¥150.9B (FY2021) to ¥311.3B (FY2025), with the non-GAAP operating margin nearly doubling from 5.0% to 9.1%. IFRS operating profit surged 36.4% in FY2025 to ¥256.5B and net profit reached ¥175.2B, while ROE improved to 9.1%. The balance sheet has strengthened materially, with owners' equity ratio rising from ~29% (FY2020) to 45.2% (FY2025) and a low D/E ratio of 0.34x. Cash generation is robust: operating cash flow of ¥344.4B and free cash flow of ¥213.2B in FY2025 support both increased capex (¥116.1B) and higher shareholder returns (dividend raised from ¥110 to ¥140 per share). NEC's mission-critical customer base (government, finance, telecom, defense) provides sticky revenue, and technology leadership in biometrics, submarine cables, and its ~43,000 patent portfolio underpin long-term competitiveness. However, resilience is tempered by weak top-line growth (10-year revenue CAGR of only ~2%), a declining international revenue ratio (27.0% in FY2023 down to 20.7% in FY2025), workforce contraction from 118,527 to 104,194 in two years due to divestitures/restructuring, and declining R&D spend (from ¥126.3B in FY2022 to ¥99.2B in FY2025). Concentration in Japan (~79% of revenue, ~72% of employees) exposes NEC to Japanese demographic and IT-spending cycles.

Key strengths: Non-GAAP operating margin doubled to record 9.1% in FY2025, Owners' equity ratio strengthened to 45.2% with low D/E of 0.34x, Strong free cash flow of ¥213.2B supporting capex and dividends, Mission-critical customer base in government, finance, telecom, defense, Technology leadership: #1 in biometric authentication, top share in submarine cables, ~43,000 patents, Net profit growth of 17.2% YoY to ¥175.2B; ROE up to 9.1%

Risk factors: Modest revenue growth (~2% 10-year CAGR); FY2025 revenue declined 1.5%, International revenue ratio declining from 27.0% (FY2023) to 20.7% (FY2025), Workforce contraction of ~14,000 in two years due to divestitures/restructuring, Declining R&D spend from ¥126.3B (FY2022) to ¥99.2B (FY2025), High concentration in Japan (~79% of revenue), Historical compliance incidents (bid-rigging cases 2016-2017), Geopolitical and cybersecurity risks flagged as high-impact by management, Quality/safety risk in defense and public-sector systems

Revenue by geography

Revenue by product/service

Workforce by country

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