METALART CORPORATION
5644・Standard Market・Iron & Steel
Business
MetalArt Corporation, founded in 1943, is a manufacturer specializing in precision die-forged products, with its head office and main plant located in Kusatsu City, Shiga Prefecture. Centered on Automotive Parts (Precision Die-Forged Products) (83% of net sales), the company manufactures and sells Construction Machinery Parts (Precision Die-Forged Products), Agricultural Machinery Parts (Precision Die-Forged Products), and Other Parts (Precision Die-Forged Products). Its major customers are Daihatsu Motor Co., Ltd. (32.2% of net sales) and Toyota Motor Corporation (13.5%), reflecting a high degree of dependence on the Toyota Group. The company maintains an integrated production system covering forging through machining and heat treatment, and also conducts overseas operations through its Indonesian subsidiary, PT. METALART ASTRA INDONESIA. In April 2025, it absorbed and merged with group company MetalForge, advancing the integration of its business structure.
Business Model
A build-to-order model in which precision die-forged products ordered by customers are manufactured and delivered through an integrated process of forging, machining, and heat treatment. Net sales were ¥45,289 million (FY2026, ending March 2026), with an operating margin of 8.6% secured through cost reduction activities and the pass-through of higher resource prices and labor costs. Capital expenditures of ¥3,481 million were made, continuing investment to maintain and expand production capacity and to promote labor-saving measures.
Company Strengths
The company has built an in-house integrated production system covering forging, machining, and heat treatment, enabling it to supply finished parts. This system also serves as a foundation for expansion into new fields such as parts for HEVs/BEVs and industrial robot components, functioning as a manufacturing capability that competitors cannot easily replicate in the short term.
Sales to Daihatsu Motor Co., Ltd. totaled ¥14,576 million (32.2% of net sales), while sales to Toyota Motor Corporation totaled ¥6,111 million (13.5% of net sales), with the two Toyota Group companies together accounting for approximately 46% of net sales. The stable order base built on years of transaction history serves as a support in times of demand fluctuation.
The company obtained "DX Certification" from the Ministry of Economy, Trade and Industry in May 2024 (renewal review completed in May 2026). It has accumulated concrete achievements in production technology innovation, including the introduction of AI-based automated inspection, the construction of labor-saving lines using robots and AGVs, and a new inspection plant that began operations in FY2025, which have contributed to improving the competitiveness of its manufacturing operations.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥44,238 million in FY2023, declined slightly to ¥43,954 million in FY2025, then recovered to ¥45,289 million (up 3.0% year on year) in FY2026 (ending March 2026). Operating profit bottomed at ¥2,921 million in FY2024, then improved for two consecutive periods to ¥2,995 million in FY2025 and ¥3,905 million in FY2026, reaching its highest level in the past five periods. The main drivers of the profit improvement were thorough cost reduction and progress in passing energy and labor cost increases through to prices. Externally, resilient domestic automotive demand and the bottoming-out of construction and agricultural machinery demand provided tailwinds. On the other hand, for FY2027 (ending March 2027), against a backdrop of the termination of parts production due to the shift to electrification and uncertainty over U.S. trade policy, operating profit is forecast to decline sharply to ¥2,410 million (down 38.3% year on year), and a reversal of the trend is expected.
Growth Strategy
Business restructuring in a private environment through full subsidiarization by Gerbera Holdings
On May 14, 2026, the company resolved to support and recommend tendering in response to the tender offer. Through full subsidiarization by the tender offeror, the company intends to pursue medium- to long-term business structural transformation in an environment free from the costs of maintaining a listing and short-term earnings pressure. The company plans to pay no dividend for FY2027 (ending March 2027), allocating cash instead to business restructuring.
The Group continues thorough cost reduction activities and efforts to pass through rising energy and labor costs to prices. In FY2026 (ending March 2026), the operating margin reached 8.6% (up from 6.8% in the previous fiscal year), reflecting the effects of these measures. In FY2027 (ending March 2027), maintaining profitability amid declining sales is expected to be a challenge.
The consolidated subsidiary Metal Forge Co., Ltd. was excluded from the scope of consolidation (through an absorption-type merger), establishing an integrated Group business operation structure. This aims to strengthen agile responsiveness through the integration of manufacturing and sales functions and to achieve fixed cost reductions.
In anticipation of the discontinuation of production of certain parts due to the electrification shift, the company is promoting expansion of sales to new customers and new parts. In FY2026 (ending March 2026), the Other Parts segment achieved high growth, reaching ¥1,494 million, up 27.9% year on year. However, for Automotive Parts (Precision Die-Forged Products) as a whole, the impact of electrification is expected to become more pronounced from FY2027 (ending March 2027) onward.
Last updated: July 19, 2026