ONEX Corporation
5987・Standard Market・Metal Products
Business
ONEXS Co., Ltd. is a specialized metal heat treatment processing group founded in 1951, comprising two segments: the Metal Heat Treatment Processing Business (approximately 88% of net sales), which provides heat treatment processing such as carburizing, nitriding, and quenching, and the Transportation Business, which handles freight transportation both within and outside the group. The company operates four plants located in Atsugi (Kanagawa Prefecture), Higashimatsuyama (Saitama Prefecture), Yamaguchi, and Kameyama (Mie Prefecture), with major customers being automotive-related, industrial machine tool-related, and construction machinery-related manufacturers. Its subsidiary ONEXS Tech Center Co., Ltd. (Kameyama City, Mie Prefecture) covers the Kinki and Tokai areas, while ONEXS Line Co., Ltd. handles the Transportation Business. The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company undertakes contracted heat treatment processing of metal parts for customer manufacturers, recognizing revenue by delivering processed products after carburizing, nitriding, quenching, and other processes. It is a capital equipment industry requiring upfront investment in equipment (heat treatment furnaces) and technical personnel, where the utilization rate determines profitability. The Transportation Business complements the group's overall supply chain by internalizing the transport of heat-treated products, and it also handles transportation for external customers. Fund procurement relies mainly on long-term borrowings from financial institutions.
Company Strengths
Specialized in metal heat treatment processing for over 70 years since its founding in 1951. Continuous R&D is conducted centered on the Technology Research Institute established in 1971, focusing on four themes: material strengthening, energy conservation, minimization of distortion, and high-precision quality. R&D expenses for FY2025 (ended June 2025) were ¥31 million. Multiple plants have obtained ISO9001 and ISO14001 certifications.
The equity ratio as of the end of FY2025 (ended June 2025) was 60.5% (59.4% at the end of the previous fiscal year). Net assets stood at ¥5,252 million against total assets of ¥8,676 million. Cash and deposits were abundant at ¥2,928 million, and operating cash flow secured ¥698 million. Total liabilities decreased by ¥185 million year-on-year to ¥3,424 million, and financial soundness has been maintained.
The subsidiary Ornex Line Co., Ltd. obtained a license for General Freight Transportation, internalizing the transport of heat-treated products. Sales in the Transportation Business for FY2025 (ended June 2025) were ¥602 million (up 12.3% year-on-year), with segment profit of ¥33 million (up 131.4% year-on-year), expanding its contribution to earnings. Internal transfer sales represent stable demand equivalent to approximately 44% of external sales.
ENVALITH's Perspective
Performance Trend
Revenue remained flat in the ¥5,000 million range, moving from ¥5,066 million in FY2021 to ¥5,053 million in FY2025, with the full-year forecast for FY2026 (ending March 2026) also stable at ¥5,138 million (up 1.7% year on year). On the profit side, however, operating losses or low profitability persisted in FY2021, FY2024, and FY2025, before a sharp recovery in the cumulative nine months through Q3 of FY2026 (ending June 2026), with operating profit of ¥308 million, ordinary profit of ¥317 million, and profit attributable to owners of parent of ¥319 million. The main drivers were a decrease in raw material costs (cost of sales down approximately ¥110 million year on year for the same nine-month period) and an increase in orders related to industrial machine tools. As an external factor, concerns over rising raw material prices due to the risk of a Strait of Hormuz closure remain a source of uncertainty for the second half. The equity ratio improved to 68.0%, and interest-bearing debt was also substantially reduced.
Growth Strategy
Strengthening the earnings structure through a three-pronged approach: production consolidation, capturing outsourcing demand, and leveraging subsidiaries
Promoting diversification of the demand mix by offsetting the decline in automotive parts-related demand with increased orders for industrial machine tools and other applications. In the cumulative nine months of FY2026 (ending March 2026), the increase in industrial machine tool-related demand became apparent, achieving a 4.8% year-on-year increase in net sales.
Subsidiary O-NEX Tech Center is developing new business partners through an integrated sales and plant operation approach. In the cumulative nine months of FY2026 (ending March 2026), it achieved increases in both revenue and profit, with segment profit in the Metal Heat Treatment Processing Business expanding sharply by 596.3% year on year to ¥264 million.
Reducing fixed costs through production consolidation following the completed sale of the Yamaguchi No. 2 Plant, and through integrated operation of the Atsugi and Higashimatsuyama plants. Also promoting energy cost reduction in parallel through the introduction of self-consumption solar power generation systems (at the Yamaguchi and Kameyama plants). Depreciation expense decreased from ¥314 million in the same period of the prior year to ¥303 million.
Continuing to conduct detailed, granular profitability analysis by processing type at each plant, promoting productivity improvement and profit management. In the cumulative nine months of FY2026 (ending March 2026), the gross profit margin improved significantly from 21.2% in the same period of the prior year to 27.5%.
Last updated: July 17, 2026