FDK CORPORATION
6955・Standard Market・Electric Appliances
Business
FDK Corporation, founded in 1950, is a battery and electronic components manufacturer listed on the Standard Market of the Tokyo Stock Exchange. In the Battery Business (approximately 81% of net sales), the company manufactures and sells Alkaline Batteries, Nickel-Metal Hydride Batteries, Lithium Batteries, manganese dry batteries, and energy storage systems, supplying them to home appliance, security, smart meter, and residential alarm manufacturers both domestically and overseas. In the Electronics Business, the company handles Switching Power Supplies, Toner, and Various Modules, delivering them to electronics set manufacturers. In addition to domestic manufacturing bases, the company has subsidiaries in China, Taiwan, the United States, Singapore, Hong Kong, Germany, and other locations, with overseas business accounting for 44.7% of net sales. In March 2025, SILITECH TECHNOLOGY CORPORATION became the largest shareholder, changing the company's capital structure.
Business Model
In the Battery Business, battery products manufactured at the company's own factories and overseas subsidiaries in China, Taiwan, and elsewhere are sold to equipment manufacturers and retail channels both domestically and internationally. In the Electronics Business, Switching Power Supplies, Toner, and Various Modules leveraging proprietary materials technology are supplied to set manufacturers. Profitability is structurally determined by cost management for raw material procurement (nickel, zinc, lithium, rare earths) and cost reductions through technical VE, while overseas sales are secured while hedging risk through forward exchange contracts and other means.
Company Strengths
The company has achieved continued sales growth in Lithium Batteries for domestic security systems, smart meters, and residential alarm devices. In FY2026 (ending March 2026), it developed and began mass production of the high-capacity model "CR17500EX" (17% higher capacity than existing models), with shipments starting from February 2026. Its product development capabilities and mass production system for specific applications serve as a differentiating factor against competitors.
The company is simultaneously developing multiple next-generation technologies, including the SMD Compact All-Solid-State Battery SoLiCell® (high energy density model and constant-voltage charging compatible model "SCD4532K"), Nickel-Zinc Battery (targeting mass production start during FY2027, already introduced to over 50 companies), and high-capacity AB₂-type hydrogen storage alloy for hydrogen storage tanks (approximately 20% greater hydrogen storage capacity than AB₅-type). R&D expenses totaled ¥793 million in FY2026 (ending March 2026).
In response to price fluctuations in key materials such as nickel, zinc, lithium, and rare earths, the company combines technical value engineering (VE) measures including reducing material usage, shifting to lower-cost materials, utilizing recycled materials, and making advance purchases at appropriate times. In FY2026 (ending March 2026), Battery Business segment profit was ¥1,707 million (up 49% year on year), achieving significant profit growth despite a decline in sales, driven by responses to raw material price fluctuations and the effects of yen depreciation.
ENVALITH's Perspective
Performance Trend
Revenue moved sideways from ¥61,456 million in FY2022 to ¥59,561 million in FY2026, with FY2026 down ¥3,610 million year on year. The main causes were a decline in Nickel-Metal Hydride Battery sales for overseas home appliances, a lull in the Equipment-Related Business, and a decrease in Electronics Business modules. On the other hand, operating profit bottomed out at ¥568 million in FY2024 and increased for two consecutive periods to ¥1,394 million in FY2025 and ¥1,667 million in FY2026. Cost reductions through technical VE (value engineering), a reduction in the size-based portion of enterprise tax, and cuts in selling, general and administrative expenses all contributed. In the external environment, the prolonged Russia-Ukraine situation, the slowdown in the Chinese economy, and continued high US interest rates have weighed on demand. Profit attributable to owners of parent increased to ¥745 million (versus ¥536 million in the previous period). The equity ratio improved to 40.2% (versus 35.2% in the previous period).
Growth Strategy
Under the medium-term plan "R3," the company is promoting multifaceted expansion of its current businesses and diversification of its business portfolio
Capturing growing demand for Lithium Batteries used in security systems, smart meters, and residential alarms, while strengthening product competitiveness through the development of high-capacity, high-output cylindrical manganese dioxide lithium primary batteries. Revenue growth was achieved in FY2026 (ending March 2026), and continued demand capture is expected.
In addition to the high energy density model, a constant-voltage charging compatible model was developed, broadening the range of customer performance requirements that can be addressed. However, when an impairment loss was recorded in the previous fiscal year, it was noted that "the conventional product specifications have low versatility," and challenges remain toward commercialization and mass production.
A brand licensing agreement was concluded with Energizer Holdings, Inc., building a more effective brand structure. Amid a decline in Alkaline Battery revenue due to changes in consumer behavior caused by rising prices, the company aims to expand sales and brand awareness by strengthening brand power.
While discontinuing unprofitable products, such as ending production for liquid crystal display applications, Toner achieved revenue growth. In FY2026 (ending March 2026), the Electronics Business segment fell into a loss of ¥39 million, making improvement in the profitability of remaining products an urgent priority. Business efficiency will be pursued through the absorption-type merger of FDK TAIWAN LTD. into FUCHI ELECTRONICS CO.,LTD. (implemented on March 31, 2026).
"R2" concluded at the end of FY2026 (ending March 2026), and "R3" was announced on April 28, 2026. It is built on three pillars: "multifaceted expansion of current businesses," "diversification of the business portfolio," and "fostering a culture that learns from failure and experiences growth." The forecast for FY2027 (ending March 2027) is net sales of ¥60,000 million and operating profit of ¥1,400 million.
Last updated: July 19, 2026