PACIFIC INDUSTRIAL CO., LTD.

Business Details

Manufactures and sells press products utilizing ultra-high-tensile steel forming technology, resin products leveraging film decoration and sound/vibration insulation technology, and press/resin mold products. Major customers include Toyota Motor Corporation and other automakers. The segment operates globally through Pacific Industrial in Japan and subsidiaries in the U.S., Taiwan, Thailand and China overseas. As the core segment accounting for approximately 74% of consolidated net sales, its performance is closely linked to automobile production trends in Japan and the U.S.

Recent Overview

Increased automobile production in Japan and the U.S. and cost improvements drove a 114.4% year-on-year increase in 9M cumulative operating profit

In the nine months ended December 2025 (April 2025 to December 2025) of FY2026 (ending March 2026), sales volume increased against a backdrop of higher automobile production in the major Japanese and U.S. markets, and net sales reached ¥120,185 million (up 10.3% year on year). On the profit side, in addition to increased sales volume, continuous cost improvement activities were successful, and operating profit improved significantly to ¥11,085 million (up 114.4% year on year). The operating margin rose markedly from 4.7% in the prior-year period to 9.2%.

Key Products

Growth Drivers

• Increasing automobile production trend in major markets of Japan and the U.S. (production increased year on year in the 9M cumulative period of FY2026 (ending March 2026))
• Improved profitability through continuous cost improvement activities (9M cumulative operating profit up 114.4% year on year)
• Expansion of orders for new products and body shell parts for electrified vehicles leveraging ultra-high-tensile technology
• Increased production capacity through higher utilization at the new Higashi-Ogaki plant (operational since 2023) and construction of the fifth U.S. plant
• Progress in development, sales expansion, and production system establishment for BEV resin products

Risks

• Risk of reduced automobile production in Japan and the U.S. (in FY2025 (ended March 2025), full-year sales and profit declined due to a year-on-year production decrease)
• Impact of tariff policy under the new U.S. administration (not factored into earnings forecasts)
• Profit pressure from increased labor and other costs
• Foreign exchange risk (impact of yen appreciation on yen-converted sales of overseas subsidiaries)
• Risk of changes in management policy and capital policy due to the change of parent company to CORE Corporation following completion of the MBO