JTEKT Corporation
6473・Prime Market・Machinery
Business
JTEKT was formed in 2006 through the merger of Koyo Seiko, founded in 1921, and Toyoda Machine Works, established in 1941, making it a comprehensive parts and equipment manufacturer. The company comprises three segments: Automotive (approximately 71% of revenue), which includes Electric Power Steering (EPS), Steer-by-Wire systems, and drivetrain components; Industrial Machinery & Bearings (approximately 18%), which includes Roller Bearings and Ball Bearings; and Machine Tools (approximately 11%), which includes Grinding Machines and Machining Center / Cutting Machine products. It is a global group with 111 consolidated subsidiaries and 14 affiliated companies, with the Toyota Motor Group as its primary customer (sales of ¥408,556 million in FY2026 (ending March 2026), 21.2% of total). Consolidated revenue for FY2026 (ending March 2026) was ¥1,924,950 million.
Business Model
In the Automotive segment, the company adopts a build-to-order, long-term supply model based on customer production plans, mass-producing and supplying high-value-added components such as Electric Power Steering (EPS). The Industrial Machinery & Bearings segment secures stable demand through a two-pronged approach covering both OEM and aftermarket sales. The Machine Tools segment operates on a build-to-order basis and is transitioning toward providing turnkey solutions combining Control Equipment (IoE-related products) and Digital Services (Maintenance & Automation). The company invests ¥56,471 million in R&D expenses (FY2026 (ending March 2026)), positioning technological superiority as a source of earnings.
Company Strengths
The linkless Steer-by-Wire system "Syncusteer™" has been adopted in the LEXUS RZ, LEXUS's first dedicated BEV model, achieving mass production. The cooperative steering technology "Pairdriver®" was also adopted for the first time in the new RAV4. These are proprietary technologies that competitors cannot easily replicate in a short period, and they underpin the company's competitive advantage as a proven addition to its next-generation mobility product lineup.
In FY2026 (ending March 2026), sales to Toyota Motor Corporation reached ¥408,556 million (21.2% of total sales), expanding from ¥382,124 million (20.3%) in the previous fiscal year. This long-standing business relationship, which traces its origins to the company's separation and independence from Toyota Motor Industry in 1941, has formed a customer base that is difficult for competitors to replace in a short period.
Of total revenue of ¥1,924,950 million, Automotive accounted for ¥1,367,005 million, Industrial Machinery & Bearings for ¥347,067 million, and Machine Tools for ¥210,877 million, with the three businesses operating in parallel. This structure allows Industrial Machinery & Bearings and Machine Tools to offset fluctuations in the automotive market, with the Machine Tools business contributing to overall earnings stability through its relatively high profitability, recording a business profit margin of 8.3%.
ENVALITH's Perspective
Performance Trend
Revenue increased from ¥1,428,426 million in FY2022 to a peak of ¥1,891,504 million in FY2024, then remained roughly flat at ¥1,884,397 million in FY2025 and ¥1,924,950 million in FY2026. Operating profit deteriorated sharply for two consecutive periods, falling from ¥62,196 million in FY2024 to ¥38,452 million in FY2025 and ¥24,847 million in FY2026. Profit attributable to owners of the parent also remained at low levels, declining from ¥40,257 million in FY2024 to ¥13,713 million in FY2025 and ¥11,974 million in FY2026. While external factors such as the stagnation of the European and Chinese economies and U.S. tariff policy acted as headwinds, the effect of the weaker yen and cost improvements pushed up business profit (¥75,679 million, +16.5%). A sharp increase in "other expenses" (¥56,782 million) is a key challenge, significantly weighing down operating profit.
Growth Strategy
A dual-track approach combining transformation into a solutions provider with the enhancement of added value in existing businesses and the restructuring of the global operational framework
Through the divestiture of the European Needle Roller Bearing business (sale of all equity interests in JTEKT BEARINGS CZECH REPUBLIC S.R.O., completed in August 2025), the Company achieved fixed cost reductions and improved asset efficiency. This contributed to the improvement in business profit margin in the Industrial Machinery & Bearings segment (business profit up +29.6% year on year).
The Company continued cost improvement activities across all segments, improving business profit for FY2026 (ending March 2026) to ¥75,679 million (+16.5%). Even amid an environment of only slight growth in revenue, the business profit margin improved from 3.4% to 3.9%. For FY2027 (ending March 2027), the Company targets business profit of ¥90,000 million (+18.9%).
The Company is advancing the development of products for autonomous driving applications, including C-EPS, second-generation RP-EPS, Steer-by-Wire / Pairdriver®, and others. It is also progressing the development of large-model Grinding Machines for BEV battery manufacturing equipment, converting the electrification trend into revenue opportunities.
The decision made in October 2024 to establish a new plant in India strengthens the supply framework for the rapidly growing Indian market in both the Automotive and Industrial Machinery & Bearings segments. Revenue from Asia, Oceania, and other regions is on an expanding trend, reaching ¥270,741 million in FY2026 (ending March 2026).
As the midpoint year of the second Medium-Term Management Plan toward achieving the "JTEKT Group 2030 Vision," the Company is embodying its strategy. It targets revenue of ¥1,880,000 million, operating profit of ¥75,000 million, and profit attributable to owners of the parent of ¥50,000 million for FY2027 (ending March 2027), accelerating its transformation into a solutions provider.
Last updated: July 19, 2026