RYOBI LIMITED

Business Details

A business that manufactures and sells die-cast products and Aluminum Castings used as components for automobiles and other applications. The company operates production sites in Japan, the United States, Mexico, the United Kingdom, China, and Thailand, with major automotive manufacturers such as Ford Motor and General Motors as key customers. In FY2025 (ending December 2025), net sales to external customers were ¥274,310 million, accounting for 88.7% of consolidated net sales, forming the core revenue base of the group. The segment mainly operates on a continuous build-to-order production system, producing and shipping based on customers' informal forecasts.

Recent Overview

Q1 FY2026 net sales increased on the back of aluminum price pass-through and the yen depreciation effect, with earnings increasing further due to progress in price pass-through

In Q1 FY2026 (ending December 2026), the Die Casting segment recorded net sales of ¥69,328 million (up 2.1% year on year), segment operating income of ¥2,911 million (up 29.6% year on year), and an operating margin of 4.2% (up 0.9 points year on year). Production volume (by weight) was roughly flat, but pass-through of higher aluminum prices to selling prices and an increase in the yen-converted value of overseas subsidiaries' sales due to yen depreciation contributed to the increase in sales. Domestic sales increased, while overseas sales decreased due to a decline in the Americas. On the profit side, in addition to cost reductions and productivity improvements, progress in passing through higher labor costs and energy prices to prices resulted in a substantial increase in earnings.

Key Products

Growth Drivers

• Improved earnings from progress in passing through higher aluminum prices to selling prices
• Increase in the yen-converted value of overseas subsidiaries' sales due to yen depreciation
• Continued pursuit of cost reduction and productivity improvement measures
• Progress in passing through higher labor costs and energy prices to selling prices
• Addressing demand for giga-casting and ultra-large parts through the introduction of a 6,500-ton clamping force die-casting machine
• Expansion of orders through a global production network spanning Japan, the United States, Mexico, the United Kingdom, China, and Thailand
• Growing needs for automotive weight reduction and the environmental advantages of aluminum die-casting

Risks

• Risk of changes in demand for core product lines due to progress of CASE trends (electrification, automation, etc.) in the automotive industry
• Risk of fluctuations in automobile production due to the impact of trade policies in various countries and concerns over a global economic slowdown
• Risk of earnings volatility due to unstable exchange rates (US dollar, British pound, Chinese yuan, Thai baht) (assumed rates from Q2 onward: US dollar ¥150, British pound ¥200, Chinese yuan ¥21.0, Thai baht ¥4.7)
• Risk of cost increases due to prolonged high raw material (aluminum) prices
• Customer concentration risk related to Ford Motor (12.5% of net sales) and General Motors (11.0% of net sales)
• Risk of demand fluctuations at overseas sites, including declining sales in the Americas business
• Risk of decreased domestic demand due to the medium- to long-term outlook for a shrinking domestic automobile market