KYOKUTO KAIHATSU KOGYO CO.,LTD.

Business Details

The flagship segment that manufactures and sells special-purpose vehicles such as dump trucks, tailgate lifters, tank trucks, garbage collection trucks, and trailers. Customers include truck manufacturers, dealers, rental companies, and municipalities. The business is based on made-to-order production and is characterized by high-mix, low-volume manufacturing. In addition to four domestic plants (Yokohama, Nagoya, Miki, and Fukuoka), manufacturing and sales are also conducted through Nippon Trex, Hokuriku Jyuki Kogyo, and overseas operations (China, Indonesia, India, and Australia). The company holds the top domestic market share in concrete pump trucks and trailers, among others.

Recent Overview

Both net sales and operating profit increased significantly, driven by price revisions, improved chassis supply, and overseas base development

In the Special-Purpose Vehicles Business for FY2026 (ending March 2026), net sales rose sharply to ¥135,265 million (up ¥16,556 million, or +13.9%, year on year), and operating profit rose to ¥6,298 million (up ¥1,622 million, or +34.7%, year on year). In addition to steady domestic order trends, the effects of product price revisions (implemented in April 2025) and productivity improvements, along with improved truck chassis supply, contributed to the results. Overseas, SATRAC ENGINEERING's second plant in Chennai, India, was completed in February 2026, and a new plant in Indonesia is scheduled for completion in July 2026. After-sales service capabilities were strengthened through the introduction of a large automated warehouse at the new Western Parts Center and integration of the Chubu Parts Center.

Key Products

Growth Drivers

• Continued implementation of product price revisions (price revisions for some special-purpose vehicle products and repair parts implemented in April 2025)
• Improved productivity and increased shipments due to improved truck chassis supply
• Steady trend in domestic orders
• Expansion of overseas business (completion of SATRAC ENGINEERING's second plant in Chennai, India; new plant in Indonesia scheduled for completion in July 2026; enhancement of the operational structure of STG Global Holdings Pty Ltd in Australia)
• Expansion of the stock business (repair parts and after-sales service) and strengthened supply capabilities through operation of the new Western Parts Center
• Rollout of high-value-added new products such as the BEV-compatible "e-Packer®" and response to carbon neutrality
• Capturing construction-site demand through the launch of new products such as the electric stationary Pistcrete® "PT110-20M"
• Strengthened R&D capabilities for IoT, AI, and carbon neutrality through the completion of the Kyokuto Kaihatsu Group Technical Center (R&D facility) in June 2026

Risks

• Cease-and-desist order and surcharge payment order for violation of the Antimonopoly Act (a surcharge of ¥5,925 million was recorded as an extraordinary loss; a lawsuit seeking cancellation of the order is ongoing)
• Risk of renewed tightness in the supply of parts and materials such as truck chassis (recurrence of semiconductor shortages, etc.)
• Increased manufacturing costs due to rising prices of steel materials, parts, and other raw materials
• Fluctuations in domestic truck demand (front-loaded demand and subsequent decline driven by the timing of exhaust gas regulations, vehicle weight regulations, and model changes)
• Geopolitical and foreign exchange risks in overseas operations (Australia, India, Indonesia, and China)
• Increasing burden of goodwill amortization (balance of ¥7,654 million as of the end of FY2026 (March 2026); amortization for the period of ¥868 million)
• Risk of rising material procurement costs and demand fluctuations due to the impact of trade and tariff policies in the United States and elsewhere