UNIVANCE CORPORATION
7254・Standard Market・Transportation Equipment
Unit Business
Core group segment handling four-wheel drive systems, gearboxes, and related products
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year, FY2026 (ending March 2026)) | ¥37,444 million | ¥35,500 million | ↑ |
| Segment profit (full year, FY2026 (ending March 2026)) | ¥5,206 million | ¥4,196 million | ↑ |
| Segment profit margin (full year, FY2026 (ending March 2026)) | 13.9% | 11.8% | ↑ |
| Depreciation and amortization (full year, FY2026 (ending March 2026)) | ¥1,673 million | ¥1,885 million | ↓ |
| Capital expenditures (increase in tangible and intangible fixed assets, full year, FY2026 (ending March 2026)) | ¥1,234 million | ¥1,106 million | ↑ |
| Impairment loss (full year, FY2026 (ending March 2026)) | ¥885 million | ¥25 million | ↑ |
Business Details
A reportable segment that manufactures and sells Four-Wheel Drive System (4WD Unit), Gearbox, and industrial machinery products. In addition to domestic operations (Univance itself), the segment operates on a global basis with overseas bases in the United States, Thailand, and Indonesia. Major customers include Nissan Motor Co., Ford Motor Company, Honda Motor Co., and CNH Industrial. Net sales account for approximately 66% of consolidated total sales, making this the core business, with the Asian bases serving as the primary earnings driver.
Recent Overview
Increased sales and profit driven by pre-tariff demand in Asian bases, weaker yen, and price corrections, but a large impairment loss was recorded at the Japan base
In FY2026 (ending March 2026), Unit Business net sales were ¥37,444 million (up 5.5% year on year), and segment profit was ¥5,206 million (up 24.1% year on year). Contributing factors included increased sales at the Asian bases driven by front-loaded demand ahead of the implementation of additional U.S. tariffs, a positive translation effect from the yen's depreciation against the Thai baht, and progress in correcting selling prices in response to rising raw material costs. On the other hand, the Japan base was affected by decreased sales due to production adjustments stemming from a slowdown in final demand, against a backdrop of soaring energy-related costs for certain customers. In addition, reflecting declining business profitability, an impairment loss of ¥885 million on production equipment and other assets was recorded within the segment.
Key Products
Growth Drivers
- Expansion of sales of products for the North American market at the Asian bases (Thailand and Indonesia)
- Increased sales at the Asian bases due to front-loaded demand ahead of the implementation of additional U.S. tariffs
- Positive foreign exchange translation effect from the yen's depreciation against the Thai baht
- Progress in correcting selling prices (price negotiations) in response to rising raw material costs
- Improved profitability from higher utilization rates at the Asian bases
Risks
- Risk of decreased sales due to production adjustments stemming from a slowdown in final demand, against a backdrop of soaring energy-related costs for certain customers at the Japan base
- Risk of changes in the export environment and a rebound decline following front-loaded demand, driven by developments in U.S. trade policy (additional tariffs)
- Increased labor costs due to wage increases and higher procurement costs due to soaring energy prices
- Risk of additional impairment losses associated with declining business profitability at the Japan base
- Risk of demand fluctuations among customers including CNH Industrial
- Risk of structural changes in demand for four-wheel drive systems, gearboxes, and similar products due to the progress of vehicle electrification
- Sluggish demand due to poor sales performance of Japanese automakers in the Chinese market
Last updated: June 25, 2026