AKEBONO BRAKE INDUSTRY CO., LTD.
7238・Prime Market・Transportation Equipment
Business
Akebono Brake Industry Co., Ltd., founded in 1929, is a brake specialist manufacturer centered on Disc Brakes, Drum Brakes, and friction materials, and also handles Brakes for Industrial Machinery & Rolling Stock. With the Japan segment—comprising four domestic manufacturing subsidiaries—at its core, the company has built a six-region global structure spanning North America (US, Mexico), Europe (Slovakia), China (Suzhou, Guangzhou), Thailand, and Indonesia (including Vietnam). Its main customers are Japanese, Western, and Chinese automakers, and it also offers Automotive Aftermarket Parts and products for rolling stock. Consolidated net sales for FY2026 (ending March 2026) were ¥160,109 million. The company positions "control and analysis of friction and vibration" as its core technology, and is also advancing the development of products compatible with EVs and environmental regulations.
Business Model
The core business model is order-based manufacturing, in which orders are secured from vehicle manufacturers for each vehicle model and production/delivery is carried out at manufacturing bases in each region. Increases in raw material prices and energy costs are addressed through negotiations to pass on costs to selling prices, securing profitability. Aftermarket parts and rolling stock products function as revenue sources that reduce dependence on vehicle manufacturers. The company invests ¥1,661 million annually in R&D expenses (with improvement-related expenses of ¥4,832 million recorded separately), maintaining the competitiveness of next-generation products.
Company Strengths
The company operates manufacturing bases in six regions—Japan, North America, Europe, China, Thailand, and Indonesia—deploying locally self-contained development and production in each region. Its supply system, closely tied to customers' production locations, such as supply to European OEMs from its Slovakia plant and the launch of new North American vehicle programs from its Mexico plant, forms the foundation for winning orders.
With "control and analysis of friction and vibration" as its core technology, the company develops environmentally and EV-oriented products such as copper-free friction materials, brake wear dust suppression, electric parking brakes, and aluminum alloy opposed-type calipers. It received the Japan Society of Mechanical Engineers Award (Technology) in 2016 and 2024, demonstrating external recognition of its technological capabilities.
Automotive Aftermarket Parts and Brakes for Industrial Machinery & Rolling Stock products have demand characteristics that are less affected by fluctuations in OEM production volumes. In FY2026 (ending March 2026), these contributed to an increase in orders in the Japan segment, and they are positioned in the medium-term management plan as a core pillar of "immediately effective sales expansion."
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥166,301 million in FY2024 (ended March 2024) and has declined for two consecutive periods, falling to ¥160,109 million in FY2026 (ending March 2026), down 1.0% year on year. The main causes were a sharp decline in orders in Europe (down 28.0% year on year) and the impact of yen appreciation. On the profit side, however, there was substantial improvement. Through price pass-through of raw material and energy costs and cost reductions, operating profit reached ¥5,567 million (up 78.2% year on year). As external factors, foreign exchange losses (¥1,873 million in the prior period) turned into foreign exchange gains (¥1,570 million), and fund-raising costs plunged from ¥1,733 million to ¥42 million, resulting in ordinary profit of ¥4,790 million (versus an ordinary loss of ¥2,271 million in the prior period), marking a swing to profitability. Combined with a decrease in tax expenses due to the recognition of deferred tax assets, profit attributable to owners of parent reached ¥1,843 million (up 996.3% year on year). Looking at the five-period trend, operating profit has been on a recovery trajectory since bottoming out at ¥185 million in FY2023 (ended March 2023), but revenue has continued to trend downward, and it should be noted that the improvement in earnings is mainly attributable to cost reductions and lower financial expenses.
Growth Strategy
Aims to achieve profitability in all regions and operating profit of ¥80,000 million over the three-year Mid-Term Management Plan 'Foundation Rebuilding'
Establishing a single-plant system through the closure of the Elizabethtown, U.S. plant, workforce optimization and fixed cost reductions are being implemented. The target is to achieve zero operating income in North America by FY2027 (ending March 2027), moving away from the operating loss of ¥3,182 million recorded in FY2026 (ending March 2026). Increased orders for new vehicle models at the Mexico site are also expected to contribute to earnings improvement.
Passing through raw material and energy cost increases to selling prices, improving materials procurement, and enhancing productivity are being promoted. Operating profit in the Japan segment for FY2026 (ending March 2026) improved significantly to ¥4,510 million (up 68.3% year on year), exceeding the first-year target of the Mid-Term Management Plan. Efforts will continue into FY2027 (ending March 2027).
Promoting increased orders for rolling stock products and Automotive Aftermarket Parts. In the Japan segment for FY2026 (ending March 2026), increased orders for aftermarket parts and rolling stock products contributed to sales and profit. While the FY2027 (ending March 2027) forecast also anticipates growth in products for Brakes for Industrial Machinery & Rolling Stock, a decline in orders due to the transfer of production of existing products to Europe and the discontinuation of production for certain vehicle models remains a challenge.
The period from FY2029 (ending March 2029) to FY2031 (ending March 2031) is positioned as a 'Re-growth' phase, aiming to re-achieve the record-high operating profit level of ¥152,000 million recorded in fiscal 2007. In addition to expanding business centered on highly profitable operations, preparations for challenges in new technologies, new products, and new markets will be carried out during the current Mid-Term Management Plan period.
Last updated: July 19, 2026