TEIN, INC.

Business Details

This is the Group's sole business segment, engaged in the development, manufacturing, and sales of automotive suspension products. Development takes place domestically, while manufacturing is conducted at domestic factories and a China factory (Tein Damper Manufacturing (Jiangsu) Co., Ltd.). Sales are conducted through domestic retail outlets in addition to a global subsidiary network covering North America (TEIN U.S.A., INC.), Europe (TEIN UK LIMITED, TEIN Europe Sp.z o.o.), China/Hong Kong (Tein Far East International Trading (Beijing) Co., Ltd.), Thailand (TEIN Sales (Thailand) Co., Ltd.), and Asia/Oceania (TEIN AUSTRALIA PTY LTD). The long-term management vision sets a target of ¥10 billion in suspension business sales.

Recent Overview

Net sales increased 4.7% to ¥5,594 million, and net income increased 36% as profitability improved

For the full year ended March 2026, net sales were ¥5,594 million (up 4.7% year on year). Domestic Japan sales (¥2,017 million) and Asia/Oceania sales (¥1,270 million) trended favorably, while U.S. sales came to ¥1,101 million, a slight decrease year on year. The China region was affected by economic stagnation. The effect of transferring production of U.S.-bound products from the China factory to the head office factory in Japan became apparent, improving the gross profit margin; ordinary income increased 16.5% to ¥456 million, and net income increased 36.0% to ¥336 million. For FY2027 (ending March 2027), the company forecasts net sales of ¥6,299 million (up 12.6%) and operating income of ¥487 million (up 45.8%). The company is planning to establish multiple joint venture sales companies in the Asian region. As a subsequent event, on April 30, 2026, the company retired 188,692 treasury shares (resulting in 9,811,308 shares outstanding after retirement).

Key Products

Growth Drivers

• Favorable sales trends in Japan and Asia/Oceania (Asia/Oceania sales increased 17.9% year on year to ¥1,270 million)
• Expansion of sales in the North American market (sales to TURN 14 DISTRIBUTION INC. increased 11.4% year on year to ¥800 million)
• Improved gross profit margin resulting from the transfer of production of U.S.-bound products from the China factory to the head office factory in Japan
• Plans to establish multiple joint venture sales companies with local partners in the Asian region to expand the sales network
• Cultivation of new demand through expansion of the EnduraPro and 4x4DAMPER lineups
• Development of the Thailand production system through the new consolidation of TEIN Manufacturing (Thailand), Co., Ltd. as a subsidiary
• Increase in equity in earnings of affiliates (from ¥6 million in the prior period to ¥42 million in the current period), boosting ordinary income

Risks

• Impact on cost of sales from U.S. trade policy (tariff) trends (policy change risk continues even after production transfer)
• Stagnation in China-region sales due to weak domestic demand in the Chinese economy (China-bound sales were ¥837 million in the current period)
• Increase in selling, general and administrative expenses due to persistently high labor costs and material prices (¥1,854 million in the current period, up 3.7% year on year)
• Instability in energy prices due to prolonged geopolitical risk in Europe and the Middle East
• Foreign exchange risk (rising procurement costs during yen depreciation/dollar appreciation phases; foreign currency translation adjustments have a significant impact on net assets)
• Funding burden from an increase in advance payments related to the acquisition of land for the Thailand factory (other current assets increased by ¥412 million year on year)