KYB Corporation
7242・Prime Market・Transportation Equipment
AC Business (Automotive Components Business)
Core business centered on hydraulic shock absorbers and hydraulic equipment for automobiles
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment net sales (full year, FY2025 ended March 2025) | ¥308,152 million | ¥293,654 million | ↑ |
| Segment profit (full year, FY2025 ended March 2025) | ¥17,163 million | ¥16,451 million | ↑ |
| Segment profit margin (full year, FY2025 ended March 2025) | 5.6% | 5.6% | — |
| Depreciation and amortization (full year, FY2025 ended March 2025) | ¥11,584 million | ¥11,323 million | ↑ |
| Increase in non-current assets (full year, FY2025 ended March 2025) | ¥12,218 million | ¥15,374 million | ↓ |
Business Details
Manufactures and sells Hydraulic Shock Absorbers for Automobiles, Hydraulic Shock Absorbers for Motorcycles (Front Forks, etc.), and Hydraulic Equipment for Automobiles (Vane Pumps, Power Steering, etc.). The segment serves domestic and overseas automobile OEM manufacturers as well as the aftermarket and service markets, with production and sales bases globally in Europe, the United States, China, Southeast Asia, and elsewhere. It is the largest segment, accounting for approximately 70% of consolidated net sales, with the Toyota Motor group as a major customer (net sales of ¥48,589 million in the fiscal year under review).
Recent Overview
Cumulative 3Q net sales up 12.0% year on year, with substantial growth in both sales and profit
For the nine months ended December 2025 (cumulative Q3 of FY2026, ending March 2026), AC Business net sales were ¥252,624 million (up 12.0% year on year), and segment profit was ¥17,092 million (a substantial increase from ¥11,932 million in the same period of the prior year). Sales of Hydraulic Shock Absorbers for Automobiles rose to ¥186,560 million (up 12.1%) on increased sales of products for domestic and Western OEMs, while sales of Hydraulic Shock Absorbers for Motorcycles rose to ¥36,879 million (up 13.8%), driven by strong orders in Japan and Europe despite a decline in demand in the Indian market. The full-year earnings forecast was revised upward from the figures announced in November 2025 (net sales of ¥475,000 million, up 8.4% year on year). In addition, in April 2025 the Company made Chita Kogyo Co., Ltd. a wholly owned subsidiary, strengthening the supply chain, reducing costs, and reinforcing the aftermarket business. As a subsequent event, in February 2026, following an indication from Toyota Motor Corporation of its intention to sell its cross-shareholding, the Company resolved to conduct a tender offer for its own shares (purchase price of ¥4,139 per share, planned number of shares to be purchased: 3,240,000 shares).
Key Products
Growth Drivers
- Increased sales of Hydraulic Shock Absorbers for Automobiles to European and North American OEMs, and a tailwind from yen depreciation
- Expansion of OEM and aftermarket business through the establishment of a shock absorber production base in the Indian market (establishment of KYB India Private Limited)
- Reinforcement of the supply chain, cost reduction, and strengthening of the aftermarket business through the full consolidation of Chita Kogyo Co., Ltd. as a wholly owned subsidiary
- Growth in electric power steering sales in China and expansion of sales in global markets
- Expansion of aftermarket profits through the launch of high-end premium aftermarket products
Risks
- Risk of sales concentration in the Toyota Motor group (net sales of ¥48,589 million in the fiscal year under review, approximately 11% of company-wide net sales)
- Risk of changes in the demand structure for conventional hydraulic shock absorbers and hydraulic equipment due to the progress of vehicle electrification (EVs)
- Risk of deteriorating productivity at manufacturing bases in Central America and Europe (which materialized in the previous fiscal year)
- Risk of reduced exports and higher raw material and energy prices due to U.S. tariff measures and geopolitical risk
- Risk of demand fluctuations in the Indian market (a decline in Indian demand for hydraulic shock absorbers for motorcycles occurred in the cumulative nine months of Q3)
Last updated: June 23, 2026