ENVALITH
TONE株式会社 logo

TONE CO.,LTD.

5967・Standard Market・Metal Products

Official website
TONE株式会社 logo
TONE CO.,LTD.5967

Business

TONE Corporation (formerly Maeda Metal Industries) is a comprehensive tool manufacturer founded in 1938, operating under the corporate philosophy of being a "Bolting Solution Company." Its core businesses are the manufacture and sale of Work Tools (Hand Tools, sockets, etc.) and bolt fastening equipment (Shear Wrench, Nutrunner, torque wrenches, etc.). Domestically, the company has developed a nationwide sales network focused primarily on the construction and manufacturing industries. Overseas, it has local subsidiaries in Vietnam and the United States, with North America and East Asia as its main markets. The company is listed on the Standard Market of the Tokyo Stock Exchange. The company's group consists of the company and 3 subsidiaries.

Business Model

Domestically, sales are mainly conducted through distribution channels such as Trusco Nakayama (24.9% of net sales), Amazon Japan (13.2%), and Yamazen (11.6%). Overseas, the company leverages its local subsidiaries in Vietnam and the United States, deploying a direct sales model that secures large-scale projects for the North American construction market. Products are manufactured on a build-to-forecast basis, with production handled by the domestic plant (Kawachinagano Plant) and the Vietnam plant. R&D expenses were ¥63,214 thousand (FY2025, ending May 2025).

Company Strengths

The company offers a comprehensive lineup as a "total tool manufacturer supplying all bolt-fastening products," ranging from hand tools to power tools and Torque Control Equipment. In FY2025 (ending May 2025) as well, it continued to launch new products such as a telescoping spinner handle, a cordless power unit, and a multi-torque-shut cordless type, maintaining strong product competitiveness.

In the Overseas segment for FY2025 (ending May 2025), sales were ¥1,527 million against segment profit of ¥470 million, representing an extremely high operating margin of 30.7%. Backed by construction demand in North America, the company secured multiple large-scale orders for Shear Wrenches and Nutrunners, achieving a 3.9% year-on-year increase in profit.

At the end of FY2025 (ending May 2025), total net assets stood at ¥11,298 million (up ¥628 million from the previous fiscal year-end), while total liabilities stood at ¥3,233 million (down ¥970 million from the previous fiscal year-end). Progress in repaying long-term borrowings has improved the financial structure. The equity ratio remains at a high level of approximately 77.8%, indicating strong financial stability.

ENVALITH's Perspective

Net sales reached ¥7,860 million (up 3.5% year on year), operating profit ¥1,364 million (up 36.1%), and net income ¥1,090 million (up 38.5%), marking a clear reversal from the two consecutive years of declining profit through the previous fiscal year. Both a reduction in cost of sales (from ¥4,628 million in the previous period to ¥4,591 million in the current period) and a reduction in SG&A expenses (from ¥1,961 million to ¥1,905 million) were achieved simultaneously, and the operating margin improved substantially from 13.2% to 17.4%. External factors, such as increased corporate sales and profits driven by price inflation, also provided a tailwind.

Operating cash flow for FY2026 (fiscal year ending May 2026) increased substantially to ¥2,258 million from ¥629 million in the previous period, mainly due to a ¥1,125 million decrease in inventories (compared with an increase of ¥116 million in the previous period). Following the completion of this inventory reduction, operating cash flow may normalize, and confirmation of trends from the next period onward will be necessary to assess sustainable cash-generating capacity. It should also be noted, when evaluating the actual financial strength, that financing cash flow turned positive due to the new procurement of ¥2,500 million in long-term borrowings.

The company's forecast for FY2027 (fiscal year ending May 2027) is net sales of ¥8,600 million (up 9.4% year on year), operating profit of ¥1,500 million (up 10.0%), and net income of ¥1,100 million (up 0.9%). While double-digit growth is expected for both net sales and operating profit, the growth rate for net income is limited to 0.9%. Downside risks include heightened geopolitical risk and persistently high raw material and energy costs, and continued concerns remain regarding sluggish demand in the construction and bridge markets due to soaring material costs and labor shortages.

Growth Strategy

Growth strategy built on three pillars: launching new products in the bolt fastening field, developing new overseas markets, and establishing the brand

Strengthened the product development structure in the bolt fastening field, continuing to launch new products and set products that capture customer needs. In FY2026 (ending May 2026), sales of both Work Tools (Hand Tools) and equipment exceeded the same period of the previous year, reflecting the results of product development in business performance.

In addition to capturing demand for flagship products (Shear Wrench, Nutrunner) in North America, the company is promoting the development of new demand in Asia and the Americas. Overseas sales in FY2026 (ending May 2026) were ¥1,588 million (up 4.0% year on year), with segment profit of ¥631 million (up 34.3% year on year), demonstrating tangible results. Approaches to new country markets such as Europe, Central and South America, Southeast Asia, and India are also continuing.

The company aims to spread awareness of the "TONE brand" through continuous branding activities, representatively including advertising activities in the motorsports industry. With the goal of establishing a globally recognized brand for quality and trust, the company is promoting the expansion of products and services and the delivery of customer value through outstanding technical capabilities.

The company is promoting thorough cost reduction to absorb rising costs, together with stable operation of overseas sites and optimization of the group-wide manufacturing, logistics, and sales structure. In FY2026 (ending May 2026), the cost of sales ratio improved from 61.0% to 58.4%, showing the effects of these measures in the numbers.

Last updated: July 17, 2026