KYOTO TOOL CO.,LTD.
5966・Standard Market・Metal Products
Business
Kyoto Tool Co., Ltd. (KTC), founded in 1950, is a specialized tools manufacturer operating a Tools Business that manufactures and sells automotive maintenance tools, medical tools, electrical construction-related tools, and precision castings, as well as a Facility Management Business covering Real Estate Leasing and Solar Power Generation (Electricity Sales). Its major customers are primarily automotive-related dealers and maintenance shops, including TRUSCO NAKAYAMA (18.3% of sales), Yamato Automotive (14.0%), and Toyota Motor (11.7%). Through its IoT tool TRASAS Series and RFID-equipped nepros ID Series, the company is also pursuing global expansion into the aerospace and MRO markets. It is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
In the core Tools Business, the company handles everything from in-house manufacturing to sales through wholesale and direct-sales channels, recording sales of ¥8,079 million (FY2026 (ending March 2026)). It aims to improve profitability through high-value-added IoT tool and solution projects. The Facility Management Business secures stable earnings (sales of ¥255 million, profit margin exceeding 68%) through Real Estate Leasing of owned properties and Solar Power Generation (Electricity Sales), forming a structure that complements the volatility risk of the Tools Business.
Company Strengths
The RFID-equipped nepros ID Series tool won the "MRO Technology Achievement of the Year" award at MRO Asia-Pacific 2025 in September 2025, becoming the first Japanese company to receive this honor. The company's technological superiority in the aerospace and MRO markets has gained international recognition, and it continues to expand awareness through initiatives such as launching a dedicated website and exhibiting at SINGAPORE AIRSHOW 2026.
As of the end of FY2026 (ending March 2026), the company held a total of 283 domestic and international industrial property rights (excluding 35 pending applications), with 23 dedicated R&D personnel and R&D expenses of ¥205 million. Development sales in the current period reached 41 product types across 235 items, and this intellectual property foundation and development structure, which support continuous product innovation, underpin differentiation from competitors.
The Facility Management Business recorded net sales of ¥255 million and segment profit of ¥175 million (profit margin of approximately 68%) in FY2026 (ending March 2026). High occupancy rates were maintained across all properties, and the new Kumiyama-cho property acquired in February 2025 contributed to earnings immediately. Together with solar power generation revenue, this business functions as a stable source of income that mitigates fluctuations in the performance of the Tools Business.
ENVALITH's Perspective
Performance Trend
Revenue decreased 7.9% from ¥9,046 million in FY2025 (ended March 2025) to ¥8,334 million in FY2026 (ending March 2026), reversing a four-year streak of revenue growth. Operating profit fell to ¥753 million (down 11.1% from ¥847 million in the prior period), ordinary profit fell to ¥817 million (down 13.4% from ¥944 million), and profit attributable to owners of parent fell to ¥501 million (down 7.9% from ¥544 million), with declines across all profit stages. Total extraordinary losses of ¥677 million (including ¥561 million in costs related to the investigation into improper accounting and ¥89 million in provisions related to product recall losses) significantly weighed on earnings. Amid an external environment where uncertainty over U.S. trade policy and supply chain disruptions posed downside risks to the economy, sluggish sales in both the retail and direct sales divisions compounded the impact of the voluntary recall of digital torque wrenches. For FY2027 (ending March 2027), the company forecasts revenue of ¥8,500 million and operating profit of ¥630 million, with a recovery in profit not expected until two fiscal years ahead or later.
Growth Strategy
Prioritizing the rebuilding of management foundations while pursuing medium-term growth through nepros ID's MRO market development and North American expansion
In response to the inappropriate accounting matter and the voluntary product recall, the company has designated the strengthening of corporate governance, the establishment of internal controls, and the review of the quality system as urgent priorities. As of May 15, 2026, the company revised its long-term vision plan and formulated and announced a new five-year plan that prioritizes the rebuilding of a robust management foundation above all else.
Centered on the nepros ID Series equipped with RFID, the company is developing the aerospace and MRO markets, which have high demand for safety management. Recognition has expanded following the award of the top prize at MRO Asia-Pacific 2025 in September 2025. In February 2026, the company exhibited at SINGAPORE AIRSHOW 2026 and launched a dedicated website to strengthen information dissemination.
The company is accelerating the global expansion of its flagship brand for professional mechanics, "nepros." It is promoting sales through the tool truck channel in the North American market, and exhibited at SEMA Show 2025 held in Las Vegas in November 2025. The company aims to establish a global brand by meeting the demands of local professional mechanics.
Positioning its own factories as core hubs for product development, the company is building an environment where humans and robots collaborate. Robots handle simple, repetitive tasks such as attachment and detachment, allowing employees to shift to higher-value-added work, forming a unique labor-saving production line. Full-scale operation of new equipment is expected to enhance production capacity for nepros and nepros ID products.
In February 2025, the company acquired a new income-generating property in Kumiyama-cho and began rental operations. High occupancy rates have been maintained across all properties, and for FY2026 (ending March 2026), segment sales were ¥255 million (up 9.9% year on year) and segment profit was ¥175 million (up 10.6% year on year), reflecting stable growth. The solar power generation panels installed on the head office site began operation in October 2025, achieving both electricity sales revenue and a reduction in environmental impact.
Last updated: July 19, 2026