Titan Kogyo, Ltd.
4098・Standard Market・Chemicals
Business
Titanium Kogyo Kabushiki Kaisha was founded in 1936 as a specialty manufacturer of Titanium Dioxide and Iron Oxide, with production facilities based in Ube City, Yamaguchi Prefecture. Its core Titanium Dioxide Business (net sales of ¥4,981 million) supplies Ultrafine Titanium Dioxide primarily for cosmetics, toners, and electronic materials, while its Iron Oxide Business (net sales of ¥3,156 million) serves brake pads, cosmetics, and paint applications. Through its subsidiary TBM Co., Ltd., the company also operates a Lithium Titanate business (a joint venture with Toshiba). Major customers include Morishita Sangyo (19.8% of sales), Inabata & Co. (17.1%), Toshiba (16.4%), and Iwase Cosfa (10.7%), with a sales network built through domestic and overseas trading companies and manufacturers.
Business Model
A manufacturing and sales model in which Titanium Dioxide and Iron Oxide are integrated manufactured at the company's own plants and sold directly or indirectly to domestic and overseas trading companies and end manufacturers. The company offers differentiated products through six core technologies including particle shape control, particle size reduction, and surface treatment, and improves profit margins through a combination of price increases and cost reduction. Capital expenditure funds are covered by long-term borrowings from financial institutions, and operating cash flow (¥1,023 million in FY2026 (ending March 2026)) covers loan repayments and maintenance/renewal investments.
Company Strengths
The company possesses six technologies—particle shape control, fine particle formation, composite formation, surface treatment, dispersion, and impurity reduction—and develops a diverse range of high-value-added products, including Ultrafine Titanium Dioxide for cosmetics and inorganic composite oxides for sealing materials and heat shielding applications. It invests ¥239 million annually in research and development, with 21 employees, approximately 8% of the total workforce, engaged in R&D activities.
The company owns a dedicated factory for Ultrafine Titanium Dioxide for cosmetics use and has established a production system capable of handling small-lot, multi-product manufacturing. In FY2026 (ending March 2025), sales in the Titanium Dioxide Business increased 8.1% year on year to ¥4,981 million, with an increase in shipments of cosmetics-use products driving the recovery in performance.
The company has built long-term business relationships with specialized trading companies such as Morishita Sangyo, Inabata & Co., and Iwase Cosfa, as well as end manufacturers such as Toshiba. It maintains a stable customer base in which the top four customers account for approximately 64% of net sales, and has established a domestic and overseas sales network—primarily covering Japan, East Asia, North America, and Europe—through both direct sales and collaboration with trading companies.
ENVALITH's Perspective
Performance Trend
Revenue continued its declining trend from ¥8,149 million in FY2022 (ended March 2022) to ¥7,953 million in FY2024 (ended March 2024), but recovered to a five-year high of ¥8,139 million in FY2026 (ending March 2026), up 4.4% year on year. Operating profit posted a substantial loss of ¥726 million in FY2024 (ended March 2024), but rapidly recovered through price increases and cost reductions, rising from ¥165 million in FY2025 (ended March 2025) to ¥299 million in FY2026 (ending March 2026). The main driver was a significant improvement in operating profit for the Titanium Dioxide Business, from ¥1 million to ¥108 million. Profit attributable to owners of parent increased only modestly to ¥202 million (up 1.1% year on year), but considering the drop-off of the ¥280 million gain on sale of investment securities recorded in the previous fiscal year, underlying earnings power has actually improved. As external factors, risks remain that continued price inflation and uncertainty over U.S. trade policy could affect personal consumption and demand.
Growth Strategy
Under the 7th Medium-Term Management Plan, the company aims to achieve ROE of 8% and net sales of ¥15.0 billion through expanded sales of cosmetics-related products, price increases, and cost reductions.
Increasing shipments of Ultrafine Titanium Dioxide and Iron Oxide for cosmetics applications is being promoted as the top priority initiative. In FY2026 (ending March 2026), increased shipments to the cosmetics sector and price increases contributed to a sharp recovery in the Titanium Dioxide Business segment's operating profit to ¥108 million. Continued sales expansion is planned for FY2027 (ending March 2027).
In the Iron Oxide Business, new adoption of products for brake pad applications was secured, offsetting the decline in shipments for toner applications. In FY2026 (ending March 2026), the effects of this new adoption materialized, and the Iron Oxide Business achieved operating profit of ¥180 million (up 17.9% year on year). The strategy is to capture stable demand from automotive parts applications.
Sales price increases in response to rising raw material and fuel costs are being continuously implemented in both segments. At the same time, thorough manufacturing cost reductions are being pursued to solidify the improvement in the profit and loss structure from the significant deficit recorded in FY2024 (ended March 2024). The improvement in the operating profit margin to 3.7% in FY2026 (ending March 2026), up from 2.1% in the previous fiscal year, demonstrates these results.
As a pillar of the 7th Medium-Term Management Plan, the company pursues the realization of a sustainable society that prospers together with society. It promotes the enhancement of corporate value through addressing environmental and social issues. Specific numerical targets and details of initiatives are not disclosed in the earnings report.
Last updated: July 19, 2026