TOHO TITANIUM COMPANY, LIMITED
5727・Prime Market・Nonferrous Metals
Business
Toho Titanium is a titanium specialist manufacturer founded in 1953, listed on the Tokyo Stock Exchange Prime Market, with JX Advanced Metals (JX Metals) as its parent company. In its core Titanium Metal Business, the company manufactures Titanium Sponge, Titanium Ingot, High-Purity Titanium, and Processed Titanium Products, supplying them domestically and overseas for aircraft, semiconductor, and general industrial applications. Its second pillar, the Catalyst Business, manufactures and sells Catalysts for Propylene Polymerization, while the Chemicals Business handles electronic component materials such as Ultrafine Nickel Powder for multilayer ceramic capacitors (MLCC). The company maintains an international production framework, including its Saudi Arabian joint venture ATTM, and reported consolidated net sales of ¥88,974 million for FY2025 (ended March 2025).
Business Model
Centered on the Titanium Metal Business (approximately 73.7% of net sales), the company secures stable sales channels through long-term sales contracts with Titanium Metals Corporation (36.0% of net sales) and Nippon Steel (15.3%), among others. The Catalyst Business (12.0% of net sales) boasts a high operating margin of 22.2%, while the Chemicals Business (14.3% of net sales) is in an investment phase for a new Ultrafine Nickel Powder plant. The structure absorbs fluctuations in raw material and electricity costs through sales price corrections, while incorporating the benefits of yen depreciation into export earnings.
Company Strengths
In addition to the domestic Wakamatsu, Chigasaki, and Yawata plants, the Saudi Arabian joint venture ATTM has transitioned to full-scale production. Export sponge titanium for aircraft applications remained strong in FY2025 (ended March 2025) as well, and the Titanium Metal Business achieved net sales of ¥65,568 million (up 10.5% year on year) and operating income of ¥6,926 million (up 53.6% year on year).
Catalysts for Propylene Polymerization recorded net sales of ¥10,680 million (up 45.8% year on year) and operating income of ¥2,371 million (up 21.4% year on year) in FY2025 (ended March 2025). By capturing recovery in regions outside China and its surrounding countries, it functions as a high-margin business contributing to the stabilization of earnings across the group as a whole.
Since its founding in 1953, the company has accumulated proprietary technologies spanning titanium, catalysts, and electronic component materials. R&D expenses for FY2025 (ended March 2025) totaled ¥2,335 million, with a focus on developing new businesses such as porous titanium bodies (WEBTi®) for PEM water electrolysis devices. Total capital expenditure reached ¥12,388 million, laying the foundation for future growth.
ENVALITH's Perspective
Performance Trend
Net sales expanded sharply from ¥55,515 million in FY2022 (ended March 2022) to ¥80,351 million in FY2023 (ended March 2023), then moved to ¥78,404 million in FY2024 (ended March 2024) and ¥88,974 million in FY2025 (ended March 2025), before turning to a decline of ¥83,389 million in FY2026 (ended March 2026) (down 6.3% year on year). Operating profit peaked at ¥10,693 million in FY2023 (ended March 2023) before falling to ¥4,400 million in FY2026 (ended March 2026) (down 33.8% year on year). External factors compounded one another, including the prolonged inventory adjustment in Boeing's supply chain, overproduction of Titanium Sponge by Chinese manufacturers, and a temporary slowdown in catalyst demand due to the construction of new polyolefin production facilities. Meanwhile, although prices of imported raw materials and electricity have peaked out, they remain at elevated levels, limiting improvement on the cost side. Operating cash flow declined sharply to ¥11,051 million from ¥19,283 million in the previous year, and cash balances fell to ¥3,647 million due to aggressive capital expenditure (¥15,007 million).
Growth Strategy
Pursuing growth within the JX Metals Group through three pillars: expanding titanium supply capacity, bringing new plants into operation, and developing new business (WEBTi®)
Continuing construction of new plants at domestic facilities to expand supply capacity for High-Purity Titanium for aircraft and semiconductor applications. Construction in progress (construction account) expanded to ¥17,523 million in FY2026 (ending March 2026), reflecting ongoing advance investment in preparation for demand recovery following normalization of Boeing's inventory adjustments.
A new Ultrafine Nickel Powder plant compatible with small-size, high-capacity MLCCs is under construction within the Wakamatsu Plant. Following the Chemicals Business's return to profitability in FY2026 (ending March 2026) (operating profit of ¥155 million), preparations for expanded supply capacity are progressing in anticipation of a demand recovery phase. Capital expenditure (Chemicals Business) totaled ¥4,620 million.
Promoting early commercialization of WEBTi®, a porous titanium material for PEM-type water electrolysis equipment. Research and development and administrative expenses included in company-wide expenses (adjustments) amounted to ¥2,981 million in FY2026 (ending March 2026), reflecting continued investment in creating new businesses. Synergies from integration with the JX Metals Group are also expected.
The share exchange making the company a wholly owned subsidiary of JX Metals is scheduled to take effect on June 1, 2026. Integration with the JX Metals Group's resource and materials value chain is expected to generate synergies including stabilization of raw material procurement, enhanced cost competitiveness, and accelerated overseas expansion. Following delisting, the company will pursue its medium- to long-term strategy as a private, non-listed company.
Last updated: July 17, 2026