IRISO ELECTRONICS CO., LTD.
6908・Prime Market・Electric Appliances
Business
Founded in 1963, iriso Electronics is a specialist manufacturer of multipole connectors, with Board-to-Board Connectors (BtoB Connectors), FPC/FFC Connectors, and Interface Connectors as its core products. Its primary market is automotive, centered on powertrain components for xEVs and high-speed transmission products for infotainment systems. The company operates a global structure with production sites in Japan, China, the Philippines, and Vietnam, and sales subsidiaries in Europe, North America, and Asia. Consolidated group net sales, including 12 consolidated subsidiaries, totaled ¥56,332 million for FY2025 (ended March 2025). Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The Company supplies materials to four production subsidiaries (China, the Philippines, and Vietnam), each of which manufactures multi-pole connectors based on the Company's specifications and delivers them to the Company. Sales are handled by the Company itself and six sales subsidiaries (Singapore, Hong Kong, the United States, Germany, China, and Thailand), which sell directly to automotive, digital, and industrial equipment manufacturers. Research and development is conducted at technology centers in Japan and Shanghai, with proprietary three-dimensional movable technology and high-speed transmission technology serving as the source of product differentiation.
Company Strengths
Three-dimensional mobility technology and high-capacity information transmission technology in BtoB Connectors form the company's core competitiveness. The company has a track record of responding to cutting-edge standards, including the completion of prototyping and performance evaluation of PCIe-Gen5 (32Gbps)-compatible BtoB Connectors and the start of mass production of compact floating BtoB Connectors supporting 30A/600V. R&D expenses were ¥1,480 million (FY2025 (ended March 2025)).
In FY2025 (ended March 2025), order intake in the Asia segment was ¥33,517 million (up 12.9% year on year), and the order backlog was ¥6,954 million (up 20.5% year on year), both on an increasing trend. This growth has been driven by expanding demand in infotainment and powertrain applications for Chinese automakers, with the segment continuing to grow as the Group's largest segment.
As of the end of FY2025 (ended March 2025), net assets stood at ¥71,196 million, with cash and cash equivalents secured at ¥24,314 million. Operating cash flow was stably generated at ¥12,043 million. The company has set a target of a dividend payout ratio of over 40% or DOE of around 5%, and has stepped up shareholder returns, including conducting share buybacks of ¥4,932 million in FY2025 (ended March 2025).
ENVALITH's Perspective
Performance Trend
For the cumulative nine months of FY2026 (ending March 2026) (April–December 2025), net sales were ¥47,129 million (up 11.8% year on year), operating profit was ¥4,467 million (up 15.1%), ordinary profit was ¥5,074 million (up 17.9%), and quarterly net profit attributable to owners of the parent was ¥3,704 million (up 27.0%), achieving double-digit growth across all items. Looking at full-year results over the past five fiscal periods, profits had deteriorated for two consecutive periods after peaking in FY2023, but cost reduction and structural reform effects have put profitability back on a recovery track. As an external factor, robust production by Chinese automakers and continued policy support served as a tailwind. Selling, general and administrative expenses decreased 1.9% year on year to ¥9,120 million, and improved cost efficiency also contributed to the profit growth. The full-year forecast (net sales of ¥58,000 million and operating profit of ¥5,500 million) represents increases of 3.0% and 3.6% respectively versus the previous period, a conservative setting, and given the cumulative Q3 progress rate, there is room to be conscious of potential upside.
Growth Strategy
Transitioning to become "iriso for Mobility," targeting net sales of ¥65,000 million and an operating margin exceeding 15% in FY2027 (ending March 2027)
Capturing growing demand in the powertrain field for xEV (EV, FCHV, PHV, HEV) applications and for movable BtoB Connectors compatible with high-speed transmission. In the cumulative third quarter, the mobility market grew steadily by 9.5% year on year, with orders expanding mainly in the China region.
Recovery in FA equipment demand and expansion in the energy management field drove rapid growth in the industrial market, which increased 73.3% year on year in the cumulative third quarter. This diversifies revenue away from dependence on mobility and enhances resilience to economic cycles.
Continuing cost reductions through standardization of equipment and molds and promotion of in-house mold production. In the cumulative third quarter, selling, general and administrative expenses decreased 1.9% year on year to ¥9,120 million, reflecting the effects of structural reform. The gross profit margin was 28.8% (31.3% in the same period of the previous year), affected by rising raw material prices, but the operating margin improved to 9.5% (9.2% in the same period of the previous year).
Strengthening domestic production capacity through the launch of the new Akita plant to enhance responsiveness to growing demand and improve productivity. Construction in progress on the balance sheet stood at ¥2,904 million (down from ¥3,504 million at the end of the previous fiscal year), indicating that capital investment is progressing concretely.
In Europe, promoting the market launch of next-generation high-speed products for integrated ECUs and scalable connectors; in North America, promoting new customer development through the use of sales agents such as Arrow Electronics. In the cumulative third quarter, Europe turned profitable (¥311 million), but North America continued to post a loss of ¥46 million, remaining a work in progress.
Last updated: July 17, 2026