H-ONE CO.,LTD.
5989・Prime Market・Metal Products
Business
H One Co., Ltd. is a manufacturer specializing in automobile parts, founded in 1939, with its core business being the manufacture and sale of Automobile Frame Parts (Press & Welding Processing) primarily for the Honda Motor group of companies. In addition to four domestic plants, the company operates globally, with North American bases in the US, Canada, and Mexico (5 consolidated subsidiaries), five bases in China (4 consolidated subsidiaries), and Asian bases in Thailand and Indonesia (4 consolidated subsidiaries). Its strengths lie in press and welding processing technology for ultra-high-tensile steel materials, as well as performance analysis and die technology for Automobile Frames, having established an integrated system from research through to mass production. Revenue for FY2026 (ending March 2026) was ¥209,659 million, with sales to the Honda group accounting for approximately 67% of total sales. The company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
A business model in which the company secures long-term orders for automobile frame parts from the Honda Motor group, its primary customer, and generates revenue through mass production and delivery at manufacturing bases in Japan, North America, China, and Asia. Equipment sales (sales of dedicated production equipment to customers) associated with the launch of new models are also a source of revenue. Under the medium-term management plan "Change 2027," the company is promoting fixed cost reductions through the consolidation of manufacturing bases and lines, as well as the optimization of selling prices, and is advancing a transformation toward a business structure that prioritizes improving profit margins over expanding sales scale.
Company Strengths
The company maintains a system that handles everything from performance analysis of automobile frames to die technology and press/welding processing of ultra-high-tensile steel, covering research through mass production in an integrated manner. It also continues to develop next-generation body components and forming/joining technologies for lightweight materials, investing ¥2,143 million in R&D expenses in FY2026 (ending March 2026).
The company has 5 consolidated subsidiaries in the US, Canada, and Mexico (of which KTH Texas, Inc. was established in August 2025), 4 in China, and 4 in Thailand and Indonesia, building a global supply system capable of supporting the local production of major customers. The North America segment forms the company's largest revenue base, with revenue of ¥115,339 million.
After recording an operating loss of ¥18,826 million in FY2024 (ended March 2024), the company promoted business structural reforms such as consolidation of manufacturing sites and lines and optimization of personnel. It achieved a rapid recovery to operating profit of ¥11,860 million in FY2025 (ended March 2025) and operating profit of ¥14,648 million in FY2026 (ending March 2026) (up 23.5% year on year), with the interest coverage ratio also improving to 16.9 times.
ENVALITH's Perspective
Performance Trend
Structural losses accumulated over FY2022 through FY2024 (ending March 2024), culminating in an operating loss of ¥18,826 million and a net loss of ¥21,656 million in FY2024 (ending March 2024). In FY2025 (ending March 2025), the effects of structural reforms and the absence of impairment losses drove a sharp turnaround to an operating profit of ¥11,860 million. In FY2026 (ending March 2026), revenue declined to ¥209,659 million (down approximately ¥18,500 million year on year), yet operating profit rose to ¥14,648 million and net income to ¥10,974 million, maintaining profit growth. As an external factor, yen depreciation boosted yen-denominated revenue in the North America segment, while ongoing manufacturing cost reductions and the establishment of appropriate sales pricing supported profit growth despite the revenue decline. Note that the Japan segment's operating profit for FY2025 (ending March 2025) was revised from ¥2,839 million to ¥4,780 million due to a correction, so caution is needed when referencing prior-period results.
Growth Strategy
Promoting portfolio transformation and profit structure reform under "Change 2027". Targeting operating income of ¥16,000 million and ROIC of 7% or higher in FY2027 (ending March 2027).
Promoting fixed cost reduction and manufacturing cost compression across all segments through site consolidation, divestiture of unprofitable businesses, and production line rationalization. Achieved a profit increase despite lower revenue in FY2026 (ending March 2026), confirming that these measures are taking hold.
Promoting the pass-through of increased raw material and energy costs to prices through negotiations with major customers. This is functioning as a factor in profitability improvement across all segments—Japan, North America, China, and Asia—with ongoing efforts continuing.
Promoting expansion of business scale through the consolidation of KTH Texas, Inc. as a subsidiary, along with cost reduction through rationalization of existing production lines and review of production patterns. The North America segment functions as the largest source of profit on a consolidated basis.
Based on the medium-term management plan "Change 2027", promoting portfolio transformation that includes expansion into new business areas, not limited to improving the profitability of existing businesses. ROIC of 7% or higher is set as the financial target to be achieved.
Last updated: July 19, 2026