UPR Corporation
7065・Standard Market・Services
Business
UPR Corporation was founded in 1979 in Ube City, Yamaguchi Prefecture, and has expanded its business scope from the manufacturing, sale, and rental of wooden pallets to plastic and metal logistics equipment. It currently operates a Logistics Business as its core, holding and managing approximately 5.28 million units of rental logistics equipment through 14 domestic sales offices and about 200 depots, while also developing Connected Business such as ICT and car sharing. Its customers span a wide range of industries, including food, household paper products, frozen goods, and pharmaceuticals, and the company is advancing overseas expansion through four Asian bases in Singapore, Thailand, Malaysia, and Vietnam. It transitioned to the Tokyo Stock Exchange Standard Market in 2022, with consolidated net sales of ¥15,354 million (FY2025, ending August 2025).
Business Model
The primary revenue source is the rental business for pallets and other logistics equipment. Through a pallet pool system in which the same pallets are used cyclically by multiple users, utilization rates are increased, generating stable rental income. Rental assets are continuously acquired each fiscal period (¥2,904 million in FY2025 (ending August 2025)), and this is a capital-intensive model that generates operating cash flow (¥3,058 million in the same period) exceeding depreciation expense (¥3,143 million in the same period). The sales business and solution business provide complementary revenue.
Company Strengths
The company operates 14 domestic sales offices and approximately 200 depots, with the number of rental logistics equipment units held reaching approximately 5.28 million. This wide-area collection and delivery network functions as a barrier to entry, and serves as the foundation for shared-use and shared-collection schemes in industries such as household paper products and frozen foods.
The revised Act on Efficient Logistics Operations, which took effect in April 2025, imposes an obligation on shippers and logistics operators to make efforts toward logistics efficiency, increasing interest in rental pallet transport, which is effective in reducing waiting and loading/unloading times. There is a track record of steady expansion in the handling of transport-use rental pallets in the household paper products, processed paper products, and frozen food industries.
Cash flow from operating activities for FY2025 (ending August 2025) secured ¥3,058 million. Despite being a capital-intensive business recording depreciation expenses of ¥3,143 million, the company maintains a stable cash-generating capability on an EBITDA basis, achieving both continued investment in rental assets and repayment of borrowings.
ENVALITH's Perspective
Performance Trend
Revenue has moved sideways after peaking in FY2023 (¥14,834 million), with cumulative revenue through Q3 of the current fiscal year reaching only a slight increase to ¥11,651 million (+0.9% year-on-year). Profitability, on the other hand, has recovered sharply, with operating profit of ¥790 million (+207.2% YoY), ordinary profit of ¥1,102 million (+87.2% YoY), and net profit attributable to owners of the parent of ¥677 million (+113.9% YoY). The main drivers of this improvement were a reduction in depreciation expenses (cumulative ¥455 million) resulting from a one-year extension of the useful life of plastic pallets, combined with the effects of transport efficiency improvements and reduced SG&A expenses. EBITDA remained a stable ¥3,147 million (+8.3% YoY), maintaining solid cash-generating capability. Full-year guidance has been revised upward to revenue of ¥15,600 million, operating profit of ¥790 million, and net profit of ¥730 million, and the annual dividend has been increased to ¥37 (up ¥12 from the previous fiscal year).
Growth Strategy
Rebuilding the earnings base during the structural reform phase, transitioning to an earnings expansion phase from FY2028 onward
Utilization rates are improving through the capture of demand for Pallet Rental (Integrated Palletization) and progress in shared use and shared collection under the household paper pallet joint use study group. The company continues to advance price pass-through to rental unit prices to improve profitability. Cumulative segment profit in the Logistics Business for the third quarter showed marked improvement, up 31.4% year on year.
Based on actual usage data, the useful life of plastic pallets was extended by one year, effective from the beginning of the first quarter. This resulted in a profit-boosting effect of ¥455 million on a cumulative third-quarter basis. Depreciation expense was reduced from ¥2,332 million in the same period of the previous year to ¥2,004 million.
The low-profitability Vehicle Solution Service business was divested (announced May 2026), concentrating management resources on growth areas such as location information, remote monitoring, and the U-Smartphone Fleet Management Service. The Solutions Business achieved a turnaround to profit, moving from a loss of ¥37 million in the same period of the previous year to a profit of ¥48 million.
Amid a continuing upward trend in depot operating expenses and transport costs driven by rising labor and energy costs, transport efficiency improvements kept transport costs below plan, and selling, general and administrative expenses also improved relative to plan. Cost of sales was reduced by ¥335 million year on year, improving the gross profit margin from 30.7% to 34.2%.
The overseas business, operating across four locations in Asia centered on Thailand, is progressing steadily. It is functioning as a source of earnings that complements the softness in domestic Spot Rental (Storage Rental Pallets), and the company plans to continue allocating management resources to this growth area.
Last updated: July 17, 2026