TSUBAKIMOTO CHAIN CO.
6371・Prime Market・Machinery
Business
Tsubakimoto Chain Co. is a machinery components and systems manufacturer founded in 1917, built on four core businesses: industrial chains (Chain), automotive engine timing chain systems (Mobility), reducers and linear actuators (Motion Control), and conveying, sorting and storage systems (Material Handling). The company is a global group consisting of the parent company, 96 subsidiaries, and 14 affiliated companies, with manufacturing and sales bases in Japan, the Americas, Europe, the Indian Ocean Rim region, and China. Its major customers span a wide range including automakers, manufacturing industries in general, and the logistics and construction machinery sectors. In January 2026, the company made Daido Kogyo Co., Ltd. a consolidated subsidiary through a share exchange, further expanding its business scale.
Business Model
In the Chain, Mobility, and Motion Control parts businesses, the company ensures stable sales by continuously supplying industrial machinery and automobile manufacturers, among others, through its global manufacturing sites and sales network. In the Material Handling business, in addition to build-to-order system sales, the company aims to accumulate stock-type revenue through after-sales service (Maintenance Service). The company will continue to invest ¥8,089 million in research and development and ¥18,085 million in capital expenditure (FY2026 (ending March 2026)) to maintain product competitiveness.
Company Strengths
The Chain segment achieved net sales of ¥99,830 million and an operating margin of 15.4%, driving profitability across the group. Sales increased in all major regions—Japan, the Americas, Europe, and the Indian Ocean Rim—with the globally optimized production and sales system serving as a source of competitive advantage. Following the consolidation of Daido Kogyo Co., Ltd. as a subsidiary in January 2026, orders received expanded to ¥101,598 million (up 9.5% year on year).
The Mobility segment recorded net sales of ¥97,359 million (up 6.8% year on year) and operating income of ¥10,036 million (up 21.1% year on year), marking a high rate of profit growth. Centered on Engine Timing Chain Systems for automobiles, mass production launches for new projects are progressing in Japan, the Americas, Europe, and the Indian Ocean Rim, and the company has also begun expanding sales of products for EV/HV applications.
Since its founding in 1917, the company has accumulated technology in mechanical component fields such as roller chains, timing chains, and reducers. The group's R&D staff numbers approximately 600 (about 5% of total employees), with R&D expenses of ¥8,089 million in FY2026 (ending March 2026). The company also promotes industry-academia collaboration with institutions such as Tokyo City University and the Nara Institute of Science and Technology.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal years, from ¥215,879 million in FY2022 (ended March 2022) to ¥295,878 million in FY2026 (ending March 2026), a CAGR of approximately 8.2%. However, operating profit in FY2026 (ending March 2026) declined for the first time, falling to ¥21,578 million (down 5.6% year on year), with the operating profit margin dropping to 7.3% (from 8.2% in the previous fiscal year). The main causes were one-time expenses such as costs related to exhibiting at the Osaka-Kansai Expo and subsidiary acquisition-related expenses, along with an increase in company-wide costs. As an external factor, the sluggish economic environment in China and Germany squeezed profit in the Chain segment, while expanding demand for hybrid vehicles as a market condition drove a 21.1% increase in operating profit in the Mobility segment. Net income rose sharply to ¥29,708 million (up 34.3% year on year) due to the recognition of a ¥11,643 million gain from negative goodwill arising from the consolidation of Daido Kogyo. However, on an underlying basis excluding this one-time factor, the outlook points to a decline in profit, with FY2027 (ending March 2027) net income forecast at ¥22,000 million (down 25.9% year on year).
Growth Strategy
In the next Medium-Term Management Plan, the company will promote a shift toward a profitability-focused business structure and the strengthening of its global management foundation
In January 2026, Daido Kogyo Co., Ltd. was made a consolidated subsidiary (16 new companies added to the scope of consolidation). Negative goodwill gain of ¥11,643 million was recorded, aiming to expand the Chain business's sales scale, product lineup, and production capacity. Realizing integration synergies is a key challenge for the next Medium-Term Management Plan period.
Following the final year of the "Medium-Term Management Plan 2025," the next Medium-Term Management Plan will pursue, as its basic policy, both the resolution of social issues and the creation of economic value, promoting a shift toward a profitability-focused business structure and strengthening the management foundation across the global group as a whole. The target for FY2027 (ending March 2027) is net sales of ¥350,000 million and operating profit of ¥25,500 million.
In conjunction with the organizational reform effective April 1, 2026, from the following consolidated fiscal year the reportable segments will be realigned from "Chain / Motion Control" into "Power Transmission," "Mobility," and "Material Handling" (3 categories). This aims to optimize the allocation of management resources and accelerate decision-making through selection and concentration of businesses.
The annual dividend for FY2026 (ending March 2026) is ¥80 per share (dividend payout ratio of 27.0%; effectively 35.0% excluding negative goodwill gain and other items). An annual dividend of ¥80 is also planned for FY2027 (ending March 2027). In May 2026, the company resolved to acquire treasury shares up to a maximum of 5,000,000 shares and ¥10.0 billion, aiming to improve capital efficiency and enhance shareholder returns.
Last updated: July 19, 2026