ONEX Corporation
5987・Standard Market・Metal Products
Metal Heat Treatment Processing Business
Core business accounting for approximately 89% of Group sales, providing contract heat treatment processing services
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (cumulative Q3 FY2026, ending June 2026) | ¥3,513 million | ¥3,314 million (cumulative same quarter of prior year) | ↑ |
| Segment profit (cumulative Q3 FY2026, ending June 2026) | ¥264 million | ¥38 million (cumulative same quarter of prior year) | ↑ |
| Segment sales (full year FY2025, ended June 2025) | ¥4,450 million | — | — |
| Segment profit/loss (full year FY2025, ended June 2025) | △¥102 million | — | — |
| Segment assets (end of FY2025, ended June 2025) | ¥8,097 million | — | — |
| Depreciation expense (cumulative Q3 FY2026, ending June 2026, company-wide) | ¥303 million | ¥314 million (cumulative same quarter of prior year) | ↓ |
Business Details
The mainstay business handled by ONEXS Corporation (the parent company) and its consolidated subsidiary ONEXS Tech Center Co., Ltd. (Kameyama City, Mie Prefecture). This is a contract processing business that applies heat treatment processing such as Carburizing Heat Treatment, Nitriding Heat Treatment, and Quenching, Tempering & Annealing to customers' metal parts. Major customers are manufacturers related to automobiles, construction machinery, and industrial machine tools. The business operates across multiple sites including Atsugi, Higashimatsuyama, Yamaguchi (No. 1 Plant), and Kameyama, capturing outsourcing demand for heat treatment from domestic manufacturing industries.
Recent Overview
Profit improved substantially due to increased orders related to industrial machine tools and lower raw material costs
In the cumulative nine months of FY2026 (ending June 2026) (July 2025 to March 2026), although orders related to automotive parts decreased, sales rose to ¥3,513 million (up 6.0% year on year) driven by increased orders related to industrial machine tools and other segments. On the profit side, a decrease in raw material costs contributed, and segment profit achieved a substantial increase to ¥264 million (up 596.3% year on year). The subsidiary ONEXS Tech Center also achieved higher sales and profit. There is no change to the full-year earnings forecast (announced August 13, 2025), with full-year sales forecast at ¥5,138 million and operating profit forecast at ¥107 million.
Key Products
Growth Drivers
- Increased orders related to industrial machine tools (materialized in the cumulative nine months of FY2026, ending June 2026)
- Expanding demand from manufacturers for outsourcing heat treatment processing (against the backdrop of structural changes in the automotive industry)
- Production consolidation and fixed cost reduction following completion of the sale of the Yamaguchi No. 2 Plant
- Improved productivity through integrated operation of the Atsugi and Higashimatsuyama plants
- Acquisition of new customers by ONEXS Tech Center Co., Ltd. through integrated sales and plant department efforts
- Reduced energy costs through introduction of self-consumption solar power generation systems (Yamaguchi Plant and Kameyama Plant)
- Strengthened profit management through deeper profitability analysis by processing type
Risks
- Risk of decreased orders from major customers in the automotive and construction machinery sectors (including reduced parts count due to EV shift)
- Profit pressure from continued rising labor costs (the main cause of the loss in FY2025, ended June 2025)
- Risk of soaring energy and raw material prices (including difficulty obtaining raw materials due to geopolitical risks such as closure of the Strait of Hormuz)
- Downside risk to manufacturing demand due to US tariff policy and geopolitical risks
- Labor shortages and recruitment difficulties due to declining working-age population
- Risk of impairment of fixed assets (an impairment loss of ¥456 million was recorded in FY2024, ended June 2024, two years prior)
Last updated: September 29, 2025