MORESCO Corporation
5018・Standard Market・Oil & Coal Products
Business
MORESCO Corporation is a chemical manufacturer that produces and sells Specialty Lubricants, synthetic lubricants, Materials, Hot Melt Adhesives, and Energy Device Materials. It was founded in 1958 as Matsumura Oil Research Institute and changed to its current name in 2009. The company operates across four regional segments—Japan, China, Southeast/South Asia, and North America—and comprises 15 consolidated subsidiaries and 1 equity-method affiliate. Its main customers are in the automotive, semiconductor, hygiene materials, and data center-related industries, and it has particular strength in high-value-added niche products such as hard disk surface lubricants and flame-retardant hydraulic fluids. Consolidated net sales for FY2026 (ending February 2026) were ¥34,871 million.
Business Model
Under the corporate philosophy of "R&D for the users," the company operates a vertically integrated model in which it develops, manufactures, and sells in-house products specialized in solving challenges in boundary areas (friction and wear). It employs 105 R&D staff (13.2% of total employees), with annual R&D expenses of ¥1,599 million. Centered on its head office and research center in Japan, the company dispatches engineers to China, Southeast Asia, and North America to build a global development framework. By enhancing the functionality and added value of its products, the company avoids price competition and secures stable earnings.
Company Strengths
A novel compound developed through proprietary molecular structure design and synthesis/purification know-how has been adopted by major disk manufacturers. In FY2025 (ending February 2025), sales of hard disk surface lubricants increased significantly, driving revenue growth in the Japan segment. Development of durable, heat-resistant lubricants for next-generation recording technologies such as MAMR and HAMR is also ongoing.
The company has manufacturing and sales bases in four regions—Japan, China, Southeast/South Asia, and North America. In FY2026 (ending February 2026), total overseas sales amounted to ¥12,623 million (approximately 36% of the total). The company continues to expand through a combination of M&A and organic growth, including the October 2023 business acquisition of CROSS TECHNOLOGIES N.A. INC. in North America and the establishment of a Mexican subsidiary in January 2025.
R&D expenses for the fiscal year under review totaled ¥1,599 million. The company is concurrently developing multiple next-generation businesses, including sealing materials for perovskite solar cells, drug discovery research on autophagy-activating agents, cosmetic applications of nanoemulsion technology, and the production of non-petroleum oils derived from biogas. In February 2024, a patent application was filed for a drug discovery compound.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal periods, from ¥27,300 million in FY2022 to ¥34,871 million in FY2026. Operating profit fell to ¥523 million in FY2023, then showed a clear recovery trend: ¥1,225 million in FY2024 → ¥1,391 million in FY2025 → ¥2,367 million in FY2026. In Q1 of FY2027 (ending February 2027), revenue was ¥9,306 million (up 9.3% year on year) and operating profit was ¥1,071 million (up 106.1% year on year), indicating accelerating profitability improvement. As an external factor, demand from customers securing inventory amid turmoil in the Middle East situation combined with price correction effects, leading to a significant improvement in gross profit margin (gross profit rose from ¥2,608 million in the same period of the previous year to ¥3,351 million). The full-year forecast remains unchanged at revenue of ¥37,000 million (up 6.1% year on year) and operating profit of ¥2,400 million (up 1.4% year on year).
Growth Strategy
Under the 10th Medium-Term Management Plan, the company is advancing three pillars: product sophistication, overseas expansion, and creation of next-generation businesses.
The company is promoting sales expansion of high-value-added products, including hard disk surface lubricants for data centers. In the first quarter of FY2027 (ending February 2027), an increase in sales was confirmed in the Japan segment, with demand continuing on the back of a market environment driven by expanding AI investment.
Through the absorption merger of CROSS TECHNOLOGIES N.A. INC. by MORESCO USA Inc. (completed January 1, 2026), the company aims to consolidate overlapping operations and reduce costs. However, as of the first quarter of FY2027 (ending February 2027), the North America segment fell into a loss of ¥15 million, and the full realization of integration benefits remains a future challenge.
The company is capturing growing demand for Specialty Lubricants against the backdrop of increasing automobile production volumes in Thailand, Indonesia, India, and other countries. Through the elimination of unprofitable products and an increase in the proportion of high-value-added products, segment profit for the first quarter of FY2027 (ending February 2027) improved significantly to ¥167 million (up 207.3% year on year).
The company implemented price corrections across all divisions in response to fluctuations in raw material prices, demonstrating its ability to pass on costs. In the first quarter of FY2027 (ending February 2027), price corrections were implemented across all divisions of the Japan segment, contributing to a significant improvement in gross profit (up ¥743 million year on year). This track record demonstrates the company's ability to secure earnings even amid turmoil in the Middle East situation.
Last updated: July 17, 2026