JVCKENWOOD Corporation

Business Details

In addition to manufacturing and selling car AV systems, car navigation systems, drive recorders, and automotive speakers, amplifiers, antennas, cables, and devices, the segment provides telematics solutions including connected drive recorders for non-life insurance companies. It consists of three businesses: OEM Business (JKHL, ASK Industries S.p.A., etc.), Aftermarket Business, and Telematics Services Business, with major customers including domestic and overseas automakers, parts manufacturers, and insurance companies. This is the largest segment, accounting for approximately 54.9% of the group's total revenue.

Recent Overview

Despite lower revenue, business profit rose 10.6% year on year due to price revisions and fixed cost reductions

Full-year revenue for FY2026 (ending March 2026) was ¥195,748 million (down ¥7,495 million, or 3.7%, year on year), a decline driven mainly by lower revenue in the Aftermarket Business due to US tariff measures and a decrease in sales of connected drive recorders to non-life insurance companies in the Telematics Services Business. On the other hand, business profit increased to ¥5,399 million (up ¥518 million, or 10.6%, year on year), supported by the profit improvement effect from price revisions in the Aftermarket Business, strong sales trends in the domestic accessories business, and fixed cost reduction efforts across the segment.

Key Products

Growth Drivers

• Continued steady sales in the overseas OEM business, centered on ASK Industries S.p.A. (Italy)
• Strong sales trends in the domestic accessories business (contributed to results roughly in line with the prior year in FY2026 (ending March 2026) as well)
• Profit improvement effect from price revisions in the Aftermarket Business
• Improved profitability through fixed cost reductions (achieved a 10.6% increase in business profit for full-year FY2026 (ending March 2026))
• Demand from non-life insurance companies in the telematics solutions field (medium to long term)
• For FY2027 (ending March 2027), strong sales of OEM domestic accessories are expected, despite anticipated effects from memory supply shortages and price increases

Risks

• Impact of reduced revenue in the Aftermarket Business due to US tariff measures (materialized in full-year FY2026 (ending March 2026))
• Declining trend in sales of connected drive recorders to non-life insurance companies in the Telematics Services Business
• Risk of decreased sales at JKHL due to the slowdown in the Chinese economy
• Impact of memory supply shortages and price increases in FY2027 (ending March 2027)
• Risk of decreased production and sales volumes due to economic slowdown in the US and China
• Foreign exchange risk (full-year assumed rates: approximately ¥151 to the US dollar and approximately ¥175 to the euro)

Business Details

This segment engages in the manufacturing and sale of Professional Radio Equipment (Radio Systems Business) and Professional Video Surveillance Equipment / Professional Audio Equipment / Medical Imaging Display Monitors (Professional Systems Business). Major customers include public safety agencies (police, fire departments, etc.) in North America and domestic and overseas industrial and medical institutions. Sales are conducted through entities such as EF Johnson Technologies, Inc. (US). This is a core segment accounting for approximately 61% of the group's total business profit, but in FY2026 (ending March 2026) profit declined significantly due to the impact of parts supply shortages and the US government shutdown.

Recent Overview

Revenue and profit both declined significantly due to the impact of parts supply shortages and the US government shutdown

In FY2026 (ending March 2026), the Radio Systems Business was affected by decreased production and sales due to parts supply shortages in the first quarter, and while conditions improved from the second quarter onward, the second half saw a combination of lost sales opportunities due to delays in product supply timing in private markets and delayed budget execution in the public safety market caused by the US government shutdown, resulting in a revenue decline of approximately ¥5.3 billion year on year. In the Professional Systems Business, JVCKENWOOD Public & Industrial Systems Corporation performed steadily, but the healthcare business saw a revenue decline, and a loss provision was recorded in connection with its withdrawal. Business profit for the segment as a whole declined significantly by 31.4% year on year to ¥12,736 million.

Key Products

Growth Drivers

• Continued expansion of demand for analog-to-digital conversion and crisis management response in the North American public safety market
• Recovery from the impact of parts supply shortages in the Radio Systems Business (expected to recover toward FY2027 (ending March 2027))
• Continued steady sales at JVCKENWOOD Public & Industrial Systems Corporation in the Professional Systems Business
• Profit improvement effect from price pass-through measures in the Radio Systems Business
• Continued realization of fixed cost reduction efforts across the segment

Risks

• Risk of delayed budget execution due to US government shutdowns (expected to primarily affect the first half of FY2027 (ending March 2027))
• Risk of recurrence of lost sales opportunities due to delays in product supply timing in private markets
• Risk of recurrence of decreased production and sales due to parts supply shortages
• Risk of additional losses arising from the withdrawal from the healthcare business
• Risk of revenue concentration in the North American public safety market (US sales account for approximately 25% of total company sales, with this segment accounting for a large proportion)
• Impact of US tariff measures (risk of spillover to the Radio Systems Business)

Business Details

Consists of two businesses: the manufacturing and sale of projectors, headphones, home audio, portable power stations, professional video cameras, etc. (Media Business), and the content business comprising contract manufacturing of CD/DVD packaged software, and audio/video software and distribution (Entertainment Business). Products and content are provided to consumers and corporate customers both domestically and overseas. In FY2026 (ending March 2026), a significant increase in revenue in the Entertainment Business offset the decline in revenue in the Media Business caused by US tariff measures, and business profit increased year on year.

Recent Overview

Despite lower revenue, business profit increased 36.2% year on year, with a marked improvement in profitability

Revenue for FY2026 (ending March 2026) was ¥56,819 million (down ¥1,116 million, or 1.9%, year on year). While the Media Business saw a revenue decline of approximately ¥43 million year on year due to the impact of US tariff measures, the Entertainment Business achieved a significant revenue increase of approximately ¥32 million year on year due to strong content sales. Business profit came to ¥2,517 million (up ¥668 million, or 36.2%, year on year), reflecting a marked improvement in profitability across the segment as a whole.

Key Products

Growth Drivers

• Strong trend in content sales in the Entertainment Business (achieved a significant revenue increase of approximately ¥32 million year on year in FY2026 (ending March 2026))
• Recovery in the Media Business as the impact of US tariff measures diminishes (outlook toward FY2027 (ending March 2027))
• Expansion of sales of media products such as projectors and portable power stations
• Improved earnings structure through expansion of digital businesses such as content distribution
• Improvement in business profit margin through continued fixed cost reductions

Risks

• Impact of reduced revenue in the Media Business (headphones, earphones, projectors, etc.) due to US tariff measures
• Risk of earnings volatility due to the content business's dependence on hit titles
• Impact on earnings from foreign exchange fluctuations such as yen depreciation or appreciation
• Risk related to parts procurement in the professional camera business
• Risk of decreased production and sales volumes due to restrained sales of Chinese-made products

Business Details

The "Other" segment mainly consists of the supply of Service Parts, and serves as a complement to the group's three main business fields (Mobility & Telematics Services, Safety & Security, and Entertainment Solutions). While the revenue scale is small, at approximately 2.7% of the company total, business profit turned positive in FY2026 (ending March 2026), with an emerging contribution to earnings.

Recent Overview

Both revenue and business profit improved, with business profit turning positive

In FY2026 (ending March 2026), revenue increased by ¥482 million year on year to ¥9,602 million, and business profit turned positive, rising from -¥1 million in the prior year to ¥226 million. Until the prior year, profit and loss had remained at roughly break-even levels, but the continued effects of fixed cost reductions and cost management took hold, and the segment emerged as a contributor to earnings.

Key Products

Growth Drivers

• Maintenance and expansion of Service Parts demand in line with the expansion of product sales in the group's three main segments
• Fixed profitability of business profit through continued fixed cost reduction and cost management
• Increased parts demand linked to the group's overall business expansion under the new medium-term management plan "VISION2030"

Risks

• Risk of decreased Service Parts demand linked to a contraction in sales in the group's main segments
• A structure in which profit and loss are prone to fluctuation due to fixed cost burdens, given the small revenue scale
• Risk that changes in the external environment, such as US tariff measures, affect overall group product sales and indirectly reduce parts demand