Yushiro Inc.
5013・Standard Market・Oil & Coal Products
Business
Yushiro Chemical Industry Co., Ltd. was founded in 1944 as a specialized manufacturer of Metalworking Fluids, supplying cutting fluids, forming fluids, cleaning agents, and other products to automobile manufacturers and parts manufacturers as its main customers, both domestically and internationally. In Japan, the company handles Cleanliness Business (formerly Building Maintenance Business) products in addition to Metalworking Fluids. Overseas, the company operates across four regional segments: North and South America (the United States, Brazil, Mexico), China (an equity-method affiliate), and Southeast Asia / India (Malaysia, Thailand, India, Indonesia), with consolidated net sales of ¥51,165 million for FY2026 (ending March 2026). The company has established independent local subsidiaries in each region, building a global framework in which production, sales, and R&D functions are completed locally.
Business Model
Local subsidiaries in each region hold both production and product development functions, practicing a "customer intimacy strategy" (a strategy of providing products matched to individual customer needs) in coordination with the Technical Center in Japan. Based on long-term business relationships with automakers and parts manufacturers, the company secures stable revenue through continuous product supply and the provision of technical services. R&D expenses of ¥2,153 million (FY2026, ending March 2026) are invested annually, advancing both the enhancement of added value in existing products and the development of new business areas in parallel.
Company Strengths
The company's securities report explicitly states it is the "domestic top share company in Metalworking Fluids," having built trading relationships with automakers and parts manufacturers over more than 80 years since its founding in 1944. It has followed major customers' overseas expansion through group companies, and these customer relationships form the source of its competitive advantage.
The company has established independent local subsidiaries in North and South America (the US, Brazil, Mexico) and Southeast Asia / India (Malaysia, Thailand, India, Indonesia), among other regions, building a local production and local sales structure. In FY2026 (ending March 2026), overseas sales reached ¥31,521 million (61.6% of the composition ratio), with North and South America alone accounting for 68.5% of operating profit, growing into a core profit pillar.
The company has commercialized self-healing polymers (Wizard Gel, Wizard Elastomer, Wizard Monomer) utilizing intramolecular host-guest groups, with evaluation and practical application studies underway at universities, public institutions, and corporate research institutions. The vitamin B2 photocatalyst "Gentamine" (Hikari Action) is also being marketed for sterilization, deodorization, and water purification applications, demonstrating a track record of cultivating revenue sources distinct from the existing Metalworking Fluids Business.
ENVALITH's Perspective
Performance Trend
Revenue achieved four consecutive periods of growth, rising from ¥37,686 million in FY2022 (ended March 2022) to ¥55,512 million in FY2025 (ended March 2025), but FY2026 (ending March 2026) saw the first decline, at ¥51,165 million (down 7.8% year on year). The main cause was the deconsolidation of the China joint venture (revenue impact of -¥4,734 million); excluding China, revenue rose 0.8% year on year. Operating profit was ¥4,489 million (down 11.4% year on year), with the operating profit margin declining slightly to 8.8% (from 9.1% in the previous period). Meanwhile, the recording of a gain on sale of investment securities of ¥1,362 million pushed pre-tax profit up to ¥6,888 million (from ¥6,186 million in the previous period), and profit attributable to owners of parent increased 11.0% year on year to ¥4,789 million. As an external factor, the declining trend in raw material prices compressed cost of sales to ¥34,053 million (from ¥38,115 million in the previous period), but selling, general and administrative expenses continued to rise, reaching ¥12,622 million (from ¥12,328 million in the previous period), and cost-increase pressures are restraining profit margins.
Growth Strategy
Under EXPLORER PLUS, the company is expanding its business domain along three axes: EVs, non-automotive fields, and new materials.
The company is promoting the development and expanded sales of new products in anticipation of the shift toward EV products and ESG orientation among its major automotive and parts manufacturer customers. In parallel, it has implemented sales price revisions to secure profitability, achieving a 1.1% year-on-year increase in net sales in the Japan segment.
The company is strengthening its expansion into the aircraft sector, where demand is expected to grow going forward. In the North and South America segment, demand for non-automotive applications has trended relatively firmly, with progress being made in efforts to reduce dependence on the automotive sector.
The company is promoting the commercialization of solution products utilizing vitamin B2 photocatalyst (Hikari Action) technology, as well as establishing mass production systems for various products utilizing self-healing materials and functional additives. The company states that steady progress is being made in achieving concrete results.
The company continues strategic investments from a medium- to long-term perspective, including strengthening IT infrastructure, promoting DX, and developing human resources and organizational structures. Capital expenditures on tangible fixed assets in FY2026 (ending March 2026) increased significantly to ¥2,195 million (versus ¥766 million in the previous fiscal year), and construction in progress also surged to ¥1,695 million (versus ¥87 million in the previous fiscal year).
The annual dividend for FY2026 (ending March 2026) was increased to ¥112 (from ¥98 in the previous fiscal year), maintaining a payout ratio of 30.9%. As a subsequent event, at the Board of Directors meeting on May 15, 2026, the company resolved to conduct a share buyback of up to ¥700 million and 265 thousand shares. The company continues to implement ongoing shareholder returns leveraging its robust financial foundation.
Last updated: July 19, 2026