Nippon Sheet Glass (NSG) chief financial officer Hiroshi Aiura explained that tariffs on imports to the United States have a “limited” impact on the company because “the glass business is fundamentally a local production for local consumption business,” and NSG is taking steps to mitigate production impacts.
Aiura made those comments in NSG’s annual integrated report for its 2025 financial year (FY 2025/3). NSG operates Pilkington Glass.
One of those steps involves “address[ing] increased costs of imported raw materials by passing on the cost increases” for U.S. auto glass production facilities, Aiura says.
“Increased demand [in the U.S.] and the price advantage gained from tariffs on after[market] glass replacement business provides benefits, mitigating the overall impact [on the company],” he adds.
NSG has 24 automotive glass production facilities globally, according to its recent financial report. Image courtesy of NSG’s FY2025/3 Integrated Report.
NSG reports a “notably weak” operating profit in Europe, which affected its automotive and architectural glass sector’s financial results. The sectors’ profits were affected by a slowed European economy from the year prior, according to NSG president and CEO Munehiro Hosonuma.
“If we were to score our progress toward the financial targets for FY2025/3, it would be 25 out of 100 points,” says Hosonuma. “We deeply regret this disappointing start, which falls short of our stakeholders’ expectations. While we sincerely accept these results, it is also true that … progress in other regions and businesses has been proceeding smoothly as planned.”
Hosonuma says that NSG expects vehicle production volumes to improve gradually, increasing the need for original equipment manufacturer glass, but the company also plans to improve profits through “self-reliance efforts, specifically by optimizing our footprint, rather than relying solely on market recovery.” That includes consolidating production lines in Germany and Italy.
NSG provides both original equipment manufacturer (OEM) glass and aftermarket glass globally. The sector produced around $2.7 billion in revenue in FY2025/3, a 1% increase from the previous financial year’s revenue and about 51% of the company’s overall revenue.
NSG divides its automotive glass sector by three main geographical regions: the Americas, which generated 40% of the sector’s revenue, Europe, which generated 41%, and Asia, which generated 19%.
NSG divides its automotive glass sector into three geographical regions. Image courtesy of NSG’s FY2025/3 Integrated Report.
NSG’s auto glass production in North America “experienced some production issues” in FY2025/3, according to Aiura, and the group is “working to improve manufacturing processes” to stabilize the situation.
Increased Advanced Driver Assistance Systems (ADAS) market penetration and more electric vehicles (EVs) will create production challenges for NSG, the report says, but the added value per vehicle could help boost auto glass financial results going forward.
“In the aftermarket, the growing number of new, ADAS-equipped vehicles increases the demand for sophisticated ADAS-compatible windshields, which in turn poses challenges to us in terms of timely supply,” the report says. “It is becoming crucial not only to develop and manufacture these advanced products but also to ensure quality service through an ecosystem incorporating skilled fitters for repair and replacement.”
