HIROSE ELECTRIC CO.,LTD.
6806・Prime Market・Electric Appliances
Business
Hirose Electric, founded in 1937, is a connector-specialized manufacturer engaged in the production and sale of electronic components, centered on Multi-pin Connectors and Coaxial Connectors. Its primary customer base spans three markets: consumer devices such as smartphones and tablets, industrial measurement/FA/medical equipment, and automotive electronics. The company operates globally through a total of 21 companies, including domestic manufacturing subsidiaries (Tohoku, Koriyama, Ichinoseki Hirose Electric, etc.), overseas manufacturing sites (Taiwan, China, Malaysia, Indonesia, South Korea), and sales subsidiaries across the US, Europe, and Asia. Revenue for FY2026 (ending March 2026) was ¥211,264 million.
Business Model
The company develops high-value-added connectors using proprietary technology, manufactures them at its own domestic and overseas production sites, and sells directly to customers through global sales subsidiaries under a vertically integrated model. Continuous product development backed by R&D expenditure of ¥9,433 million (¥13,461 million in total including amounts capitalized as fixed assets), together with capacity expansion through capital expenditure of ¥21,531 million, underpins the earnings base, and the operating margin for FY2026 (ending March 2026) remains at 20.4%.
Company Strengths
The operating margin for FY2026 (ending March 2026) stood at 20.4%. The company has maintained a high level of roughly 20% since FY2022 (ending March 2022), supported by its focus on diverse, high-value-added products and a vertically integrated manufacturing system that underpins cost competitiveness. The Coaxial Connectors segment recorded a high margin of 32.0%, boosting overall profitability.
The company operates manufacturing bases domestically (Tohoku, Koriyama, Ichinoseki, etc.) as well as in Taiwan, China, Malaysia, Indonesia, and South Korea, and has established sales offices in the United States, Europe, Singapore, China, India, Malaysia, and elsewhere. Built over more than 40 years since the establishment of its U.S. subsidiary in 1980, this global network is a unique asset that is difficult for competitors to replicate in a short period.
As of the end of FY2026 (ending March 2026), the ratio of equity attributable to owners of parent stood at 87.7%, with cash and cash equivalents of ¥87,335 million. The company maintains a financial structure close to debt-free management, giving it the financial flexibility to fund capital expenditures, M&A, and shareholder returns from its own cash resources. It has also decided on a share buyback policy with an upper limit of ¥60.0 billion for the period from FY2025 to FY2028.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥165,509 million in FY2024 (ended March 2024) and has grown for two consecutive periods, reaching ¥211,264 million in FY2026 (ending March 2026), the highest level in the past five periods. On the other hand, operating profit stood at ¥42,995 million, still below the ¥46,751 million recorded in FY2023 (ended March 2023), and the operating margin has continued a downward trend, falling from 25.5% in FY2023 (ended March 2023) to 20.4% in FY2026 (ending March 2026). As an external factor, the surge in raw material prices (gold and copper) has been pushing up the cost of sales ratio, creating a structure in which tailwinds from demand related to industrial equipment and AI are driving revenue growth, while cost pressures are squeezing profit margins. For FY2027 (ending March 2027), revenue is forecast at ¥230,000 million and operating profit at ¥46,000 million (operating margin of 20.0%), with attention focused on whether the margin decline will bottom out.
Growth Strategy
Strengthening the three pillars of industrial equipment, automotive, and telecommunications, together with the expansion of the Hirose SER business, to drive high-profitability growth
Promoting order expansion across a wide range of applications and regions, including measurement/control equipment, FA equipment, and medical equipment. In FY2026 (ending March 2026), strong demand for industrial equipment applications contributed to increased revenue in both Multi-pin Connectors and Coaxial Connectors. The company continues to position this area as a core growth driver for FY2027 (ending March 2027).
Continuing to pursue the acquisition of new projects and mass-production ramp-up for connectors used in car electronics. In FY2026 (ending March 2026), the ramp-up of new projects contributed steadily, and a solid trend is expected to continue in FY2027 (ending March 2027) as well.
Capturing demand for wireless communication equipment and electronic measuring instruments driven by increasingly active AI-related investment, while maintaining high growth in the Coaxial Connectors segment. In FY2026 (ending March 2026), revenue increased 34.2% year on year and operating profit increased 73.9%.
Cultivating the former S.E.R Co., Ltd., which became a consolidated subsidiary in July 2025, as a new growth driver. In FY2026 (ending March 2026), revenue in the Others segment rose to ¥7,112 million (up 45.0% year on year), and operating profit turned positive at ¥352 million (versus a loss in the prior period). Further business expansion is expected in FY2027 (ending March 2027) as well.
Under a shareholder return policy targeting a DOE (dividend on equity ratio) of 5%, the company paid an annual dividend of ¥505 per share in FY2026 (ending March 2026) (payout ratio of 50.9%). It has announced a share buyback policy with an upper limit of ¥60.0 billion for the period from FY2025 to FY2028, and executed ¥20,351 million in share buybacks in FY2026 (ending March 2026).
Last updated: July 19, 2026