Toyo Kanetsu K.K.

The company holds a proprietary product portfolio including Multi Shuttle, Table Sorting System, 3D Pallet Shuttle, and Modula, and has built up a delivery track record across diverse customer segments such as e-commerce, consumer co-operatives, and airport BHS. Sales to Amazon Japan G.K. reached ¥7,254 million (12.2% of net sales) in FY2026 (ending March 2026), demonstrating an ongoing business relationship with a major customer.

With over 70 years of experience since starting full-welded tank manufacturing in 1950, the company obtained Japan's first ISO9001 certification among domestic tank manufacturers in 1994. It has established manufacturing and construction bases in Indonesia (established 1974) and Malaysia (established 1992), building a system capable of handling both domestic and overseas repair and new construction projects. At the Next-Generation Energy Development Center, the company is advancing research into scaling up liquid hydrogen tanks as a NEDO-adopted project.

As of the end of FY2026 (ending March 2026), the company held an order backlog of ¥34,447 million in the Logistics Solutions Business and ¥11,634 million in the Plant Business, totaling ¥46,082 million (up 1.9% year on year), which underpins revenue for subsequent periods. Under a business structure based fundamentally on made-to-order production, the accumulation of order backlog functions to mitigate the risk of short-term downside in business performance.

FY2026 (ending March 2026) saw a decline in both revenue and operating profit due to the absence of large-scale projects, but with orders received of ¥35,860 million (up 4.4% year on year) and an order backlog of ¥34,447 million (up 2.7% year on year), the company expects a return to revenue and profit growth in FY2027 (ending March 2027). The company will continue to expand its product lineup, including the Multi Shuttle, and respond to diversifying customer needs.

While steadily capturing recurring demand for tank maintenance at domestic oil refineries, the company is improving profit margins through operational efficiency improvements such as welding automation. In FY2026 (ending March 2026), the operating margin improved to 7.8% (from 7.2% in the previous fiscal year). The company will also continue to expand repair projects overseas (Malaysia and Indonesia).

Revenue increased 17.1% due to the new consolidation of Sakata Denki and four other companies, but operating profit declined 46.6% due to M&A-related expenses, integration costs, and intensifying competition. In FY2027 (ending March 2027), the company aims to normalize earnings through the runoff of one-time costs and the realization of integration synergies, leveraging its diversified portfolio spanning industrial machinery, environment, and construction.

The Plant Business and Logistics Solutions Business will each be transferred to a wholly owned subsidiary (via company split), strengthening group management agility and governance. This is intended to enable swift decision-making tailored to the characteristics of each business and to enhance post-M&A integration and growth support. The transition is contingent on approval at the ordinary general meeting of shareholders on June 25, 2026.

Under the FY2025–FY2027 group medium-term management plan, the company targets revenue of ¥68,000 million, operating profit of ¥4,300 million, and ROE of 8%. The plan is built on three pillars: restructuring the business portfolio, improving productivity, and strengthening human capital. There remains a significant gap versus FY2026 (ending March 2026) results (revenue of ¥59,617 million, operating profit of ¥3,581 million), and achieving the targets will require a full-fledged recovery in the logistics business and improved profitability in the Mirai Sosei Business.