OSG Corporation
6136・Prime Market・Machinery
Japan
The core segment for domestic manufacturing and sales, underpinning the group's overall revenue base
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (external customers, cumulative half-year) | ¥27,662 million | ¥25,623 million | ↑ |
| Net sales (segment total, including internal transfers, cumulative half-year) | ¥41,637 million | ¥37,214 million | ↑ |
| Segment profit (operating income, cumulative half-year) | ¥6,382 million | ¥4,079 million | ↑ |
| Segment internal transfer sales (cumulative half-year) | ¥13,975 million | ¥11,590 million | ↑ |
Business Details
The Japan segment consists of OSG Corporation itself and its domestic consolidated subsidiaries. It manufactures and sells cutting tools such as Taps (Thread Cutting Tools), End Mills (Milling Cutters), and drills, along with Thread Rolling Tools, measuring instruments, and Coating Services. Its main customers are domestic manufacturers (automotive, aircraft, electronic components, and general machining), and its strengths lie in high-value-added A-brand products and catalog products for fine and precision machining. It also handles internal transfers to overseas segments and functions as the group's mother factory.
Recent Overview
Sales and profit both increased substantially, driven by A-brand and fine/precision machining products
In the second quarter (cumulative first half) of FY2026 (ending March 2026)... wait, note: fiscal year end month
Key Products
Growth Drivers
- Increased sales at home and abroad driven by the global rollout of new A-brand products
- Growing demand for catalog products for fine and precision machining
- A recovering trend in domestic manufacturing (spillover of export-related demand accompanying the recovery of U.S. manufacturing)
- Expansion of the Coating Services business (Job Coating)
- Labor-saving and efficiency improvements in the production system through the introduction of in-house manufactured machinery and equipment
- Increased internal transfers to overseas group companies (strengthening its function as a global supply base)
Risks
- Downward pressure on domestic manufacturing (export-related) from U.S. tariff policy
- Rising manufacturing costs (raw materials such as carbide) due to continued high inflation
- Demand fluctuations in the automotive-related industry (a key domestic customer sector)
- Impairment risk on fixed assets
- Increased costs to address labor shortages
- Impact of exchange rate fluctuations on internal transfer revenue to overseas destinations
Americas
A regional segment for the manufacture and sale of precision machine tools covering the United States, Canada, Mexico, and Brazil
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (external customers) | ¥19,860 million (H1 FY2026, ending March 2026) | ¥16,846 million (H1 FY2025, ending March 2025) | ↑ |
| Segment profit (operating income) | ¥3,469 million (H1 FY2026, ending March 2026) | ¥1,972 million (H1 FY2025, ending March 2025) | ↑ |
Business Details
Centered on OSG USA, INC. (United States), this segment comprises consolidated subsidiaries including Amamco Tool & Supply Co., Inc. (United States), OSG Canada Ltd. (Canada), OSG Royco, S.A. de C.V. (Mexico), and OSG Sulamericana de Ferramentas Ltda. (Brazil). It manufactures and sells cutting tools such as Taps (Thread Cutting Tools), End Mills (Milling Cutters), and drills, along with Thread Rolling Tools and measuring instruments. Its main customer base is in the aircraft, automotive, and computer/electronic products-related industries, and it is the regional segment responsible for expanding market share in North America.
Recent Overview
Both net sales and operating income increased substantially, driven by the recovery in U.S. manufacturing
In the first half of FY2026 (ending March 2026) (December 2025 to May 2026), net sales to external customers in the Americas segment were ¥19,860 million (up 17.9% year on year), and segment profit was ¥3,469 million (up 75.9% year on year). The main driver was the recovery in U.S. manufacturing, with both net sales and operating income substantially exceeding the prior-year period. The segment profit margin improved significantly, from 11.7% in the prior-year period to 17.5%.
Key Products
Growth Drivers
- Expanding demand for cutting tools against the backdrop of a recovery in U.S. manufacturing
- Continued strength in the aircraft-related industry and steady performance in the automotive-related industry
- Sustained demand for computer and electronic products against the backdrop of expanding AI-related demand
- Expanded sales of A-brand products and accelerated global expansion of thread rolling tools under the mid-term management plan "Beyond the Limit 2027"
- Generally steady economic performance in Brazil, South America
Risks
- Uncertainty going forward due to U.S. tariff policy and downward pressure on manufacturing in general
- Risk of a pause in the recovery of U.S. manufacturing (particularly in fields other than computers and electronic products)
- Risk of slowing growth in Brazil due to inflation and high interest rates
- Impact on performance from exchange rate fluctuations (U.S. dollar, Canadian dollar, Mexican peso, Brazilian real, etc.)
- Impairment risk related to goodwill balances (overseas consolidated subsidiaries are amortized on a straight-line basis over 10 years)
Europe & Africa
A regional segment that manufactures and sells precision machine tools across the Europe & Africa region
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (external customers) | ¥22,185 million (H1 FY2026, ending March 2026) | ¥17,673 million (H1 FY2025, ending March 2025) | ↑ |
| Segment profit (operating income) | ¥2,289 million (H1 FY2026, ending March 2026) | ¥1,083 million (H1 FY2025, ending March 2025) | ↑ |
Business Details
This regional segment covers the United Kingdom, Belgium, Germany, France, the Netherlands, Spain, Italy, Switzerland, Turkey, Romania, Poland, South Africa, and other countries. It is headed by the holding company OSG Europe S.A. (Belgium), and comprises consolidated subsidiaries including OSG GmbH (Germany), BASS GmbH (Germany), OSG UK Limited (United Kingdom), Contour Fine Tooling B.V. (Netherlands), and Somta Tools (Pty) Ltd (South Africa). It supplies cutting tools such as Taps (Thread Cutting Tools), End Mills (Milling Cutters), and drills mainly to the aircraft, defense, energy, medical, and automotive industries.
Recent Overview
Net sales and operating income increased substantially due to the recovery in key countries such as Germany and the effect of currency translation
In the first half of FY2026 (ending March 2026) (December 2025 to May 2026), net sales to external customers in the Europe & Africa segment were ¥22,185 million (up 25.5% year on year), and segment profit was ¥2,289 million (up 111.4% year on year), a substantial improvement. In addition to the recovery in manufacturing in key countries such as Germany, the effect of currency translation (yen depreciation) contributed to boosting net sales and operating income. In addition, Alexandre & Maia, Lda. was newly consolidated as of this interim period.
Key Products
Growth Drivers
- Recovery in manufacturing in major European countries such as Germany
- Boost to net sales and operating income from currency translation effects (yen depreciation)
- Strong demand in the aircraft, defense, energy, and medical industries
- Expansion of the scope of consolidation through the new consolidation of Alexandre & Maia, Lda.
- Improving demand in general machining industries
Risks
- Risk of a renewed downturn in European manufacturing, particularly centered on Germany
- Rising costs and reduced competitiveness due to persistently high energy prices
- Impact on energy prices and supply chains from tensions in the Middle East
- Foreign exchange risk (headwind to net sales and profit if the yen appreciates)
- Stagnation in the automotive-related industry (particularly in Germany)
- Impairment risk related to goodwill balances
Asia
A segment for the manufacture and sale of precision machine tools covering China, Southeast Asia, India, and other regions
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (external customers, cumulative half-year) | ¥22,385 million | ¥17,235 million | ↑ |
| Net sales (segment total, including internal transfers, cumulative half-year) | ¥25,161 million | ¥19,186 million | ↑ |
| Segment profit (cumulative half-year) | ¥4,341 million | ¥2,246 million | ↑ |
Business Details
The Asia segment covers China, Singapore, Thailand, Taiwan, South Korea, India, Indonesia, Vietnam, the Philippines, Malaysia, and other countries, and is handled by consolidated subsidiaries including OSG Precision Tools (Shanghai) Co., Ltd., OSG Korea Corporation, and OSG Asia Pte Ltd. It manufactures and sells cutting tools (Taps (Thread Cutting Tools), End Mills (Milling Cutters), drills, etc.), Thread Rolling Tools, and measuring instruments as its main products, and is managed as a single aggregated business unit due to geographic proximity and similarities in markets, customers, and sales methods.
Recent Overview
Sales and profit increased substantially due to the recovery in China and Thailand and continued strength in India
In the second quarter (cumulative first half) of FY2026 (ending March 2026), net sales to external customers in the Asia segment were ¥22,385 million (compared with ¥17,235 million in the prior-year period), and segment profit was ¥4,341 million (compared with ¥2,246 million in the prior-year period), both substantially increasing year on year. The main factors cited were the recovery in demand in China and Thailand, along with continued strong performance in India.
Key Products
Growth Drivers
- Recovery in manufacturing demand in China (steady trends in export-related and infrastructure-related demand)
- An overall lift for Asia from India's continued high growth
- Expansion of Southeast Asian demand driven by the recovery trend in Thailand
- Continued strength in the energy-related industry across Asia
- A tailwind from currency translation (increase in yen-denominated overseas sales due to yen depreciation)
- Expanded sales of A-brand products and catalog products for fine and precision machining
Risks
- Risk of diminishing effects of Chinese government economic stimulus measures and slowing growth in the Chinese economy
- Deterioration of the export environment for manufacturing in China and Asia due to the impact of U.S. tariff policy
- Uncertainty in the business environment due to geopolitical tensions (such as U.S.-China friction)
- Foreign exchange risk (reduction in yen-converted overseas sales if the yen appreciates)
- Uneven demand due to mixed economic conditions across Asian countries
- Impact on energy prices and supply chains from tensions in the Middle East
Last updated: July 17, 2026