T.RAD Co., Ltd.
7236・Prime Market・Transportation Equipment
Business
TIRAD Corporation, founded in 1936, is a heat exchanger specialist that manufactures and sells heat exchangers for diverse applications including automotive, construction & industrial machinery, and air conditioning equipment. The company operates production and sales bases across a five-region global framework spanning Japan, the United States, Europe, Asia, and China, forming a group that includes 13 consolidated subsidiaries and 1 affiliated company. With an independent customer base not tied to a specific corporate group (keiretsu), it supplies products to domestic and overseas automobile manufacturers, construction machinery manufacturers, and motorcycle manufacturers, including Toyota Motor Corporation. Revenue for FY2026 (ending March 2026) was ¥162,278 million, with Automotive Heat Exchangers accounting for 80.3% of revenue. The company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The company adopts a make-to-forecast production method based on customer production plans, supplying heat exchangers from local production sites in five global regions to automotive and construction machinery manufacturers in each area. As an independent supplier not tied to any specific manufacturer group, it acquires a broad customer base and creates added value through high-performance products leveraging technological advantages such as ultra-thin-wall material processing and numerical analysis technology. It practices capital-efficiency-focused financial management by consolidating surplus funds from overseas subsidiaries to the parent company through dividends and reallocating them to growth investments and shareholder returns.
Company Strengths
As an independent manufacturer not affiliated with any specific automotive group, the company's products are widely adopted by domestic and overseas automobile, construction machinery, and motorcycle manufacturers, including Toyota Motor Corporation (sales of ¥19,000 million in FY2026 (ending March 2026), accounting for 11.7% of the composition). The company maintains a customer portfolio with low dependency on any single customer, enabling diversification of demand fluctuation risk.
The company possesses design technology that balances performance, durability, weight reduction, and cost, along with industry-leading ultra-thin material processing and production technology. It also promotes development efficiency and prototype-less design through computer numerical analysis, and as of March 31, 2026, holds a total of 211 industrial property rights. Research and development facilities have been established in Japan, the United States, India, and China, establishing a system that addresses the needs of both Japanese and local manufacturers.
The Asia segment, based in Thailand, Indonesia, and Vietnam, achieved net sales of ¥24,299 million, operating profit of ¥5,044 million, and an operating margin of 20.8% in FY2026 (ending March 2026). Sales on a foreign currency basis grew solidly, up 8.1% year on year, and the operating leverage effect associated with the sales increase contributed to margin improvement (from 19.3% in the previous period to 20.8% in the current period). The segment functions as a highly profitable base driving earnings for the group as a whole.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal years, rising from ¥133,581 million in FY2022 (ended March 2022) to ¥162,278 million in FY2026 (ending March 2026). Operating profit fell to ¥1,050 million in FY2023 (ended March 2023) before recovering sharply to ¥4,350 million in FY2024 (ended March 2024), ¥7,316 million in FY2025 (ended March 2025), and ¥11,249 million in FY2026 (ending March 2026), with the operating margin reaching 6.9%. Net profit attributable to owners of the parent also reached a record high of ¥8,765 million. The main drivers were increased orders in the Japan and Asia segments, improved profitability from the relocation of production in the United States, and a decrease in the provision for product warranties. External factors, including a soft landing in U.S. tariff policy and the continuation of the weak yen trend, also supported performance.
Growth Strategy
Under the new medium-term management plan "T.RAD-2026," the company aims to achieve net sales of ¥200,000 million, ROE of 15%, and progressive dividends
The company continues R&D investment (¥1,222 million in FY2026 (ending March 2026)) toward next-generation product development, including thermal management systems for electric vehicles. Through growth investments in electrification, DX, and environmental response, the company aims to strengthen product competitiveness and expand orders in line with the electrification shift by automotive OEMs.
Progress on the production transfer project in the United States segment is driving productivity improvements and cost structure reform. In FY2026 (ending March 2026), the segment turned profitable with an operating profit of ¥591 million, versus an operating loss of ¥578 million in the previous fiscal year. The company will continue to stabilize production and improve profitability.
The Asia segment, centered on Thailand, Indonesia, and Vietnam, achieved an 8.1% increase in revenue on a local currency basis. The Japan segment also carried out active investment, with an increase in tangible and intangible fixed assets of ¥5,672 million. For the next fiscal year (FY2027, ending March 2027), the company expects steady orders in Japan and ASEAN.
Based on the new medium-term management plan "T.RAD-2026," the company has set a target of progressive dividends with a DOE of 5% or more and a payout ratio of 50% or more from FY2026 onward. The annual dividend is set to increase in stages, from ¥560 (payout ratio of 37.9%) in FY2026 (ending March 2026) to a projected ¥800 (payout ratio of 50.3%) in FY2027 (ending March 2027).
Last updated: July 19, 2026