EXEDY Corporation
7278・Prime Market・Transportation Equipment
Business
EXEDY Corporation is an automotive parts manufacturer headquartered in Neyagawa City, Osaka Prefecture, founded in 1923 and renamed to its current name in 1995. The Group consists of the Company, 50 consolidated subsidiaries, and 8 affiliated companies, and operates primarily across three segments: MT (Manual Transmission-related Business), AT (Automatic Transmission-related Business), and TS (Industrial Machinery Drive & Transmission Equipment Business). Its main products include Clutch Discs, Clutch Covers, Torque Converters, and Power Shift Transmissions, supplied to both automakers (OEMs) and the aftermarket for replacement parts. Automotive parts account for approximately 90% of revenue, and the Group operates globally through a sales network of 14 companies across 11 countries, centered on Asia and Oceania.
Business Model
While OEM parts supply to automobile manufacturers forms the foundation, the company's revenue pillar is aftermarket sales, leveraging a sales network of 14 companies across 11 countries worldwide and an immediate-delivery system enabled by its proprietary ordering system "EXEDY Express Delivery." Domestically, the company itself and Dynax play the core role in manufacturing and sales, while overseas group companies engage in local production and sales, forming a division-of-labor structure. The AT (Automatic Transmission-related Business) segment (revenue of ¥188,325 million) constitutes the largest segment, followed by the MT (Manual Transmission-related Business) segment (¥75,461 million) and the TS (Industrial Machinery Drive & Transmission Equipment Business) segment (¥12,784 million).
Company Strengths
The company operates 14 sales companies across 11 countries worldwide for the aftermarket parts business, and has built a rapid delivery system through its proprietary ordering system, "EXEDY Express Delivery." In FY2026 (ending March 2026), external customer revenue in the MT (Manual Transmission-related Business) segment maintained stable growth at ¥75,461 million (up 2.2% year on year), forming the foundation for expanded sales in emerging markets.
The group employs 532 R&D staff (approximately 5% of total employees) and conducts research and development at more than 10 sites in Japan and overseas. In February 2026, the company made Protean Electric (UK), a market leader in in-wheel motors, a subsidiary, with mass production scheduled to begin in 2027. Total R&D expenses for the fiscal year under review reached ¥7,950 million.
In the previous fiscal year, the company closed and liquidated an unprofitable U.S. subsidiary, reducing fixed costs. As a result, although the AT (Automatic Transmission-related Business) segment saw revenue decline to ¥188,325 million (down 5.7% year on year), segment profit rose significantly to ¥15,683 million (up 26.1% year on year). Operating income in the Americas region also turned profitable, reversing a loss in the previous period.
ENVALITH's Perspective
Performance Trend
Revenue expanded from ¥261,095 million in FY2022 to ¥285,639 million in FY2023 to ¥308,338 million in FY2024, then reached ¥309,564 million in FY2025, before declining to ¥303,933 million in FY2026 (down 1.8% year on year), marking a turn to lower revenue. The main causes were a decrease in orders in the AT (Automatic Transmission-related Business) and the drop-off in revenue following the closure of an unprofitable U.S. subsidiary in the previous period. Meanwhile, operating profit improved from a large loss of ¥(15,438) million in FY2024 to ¥21,845 million in FY2025 and ¥22,230 million in FY2026 (up 1.8% year on year), with the improvement now firmly established. Profit attributable to owners of parent also increased to ¥13,680 million (up 7.3% year on year). As external factors, the trend toward yen depreciation (translation adjustments from foreign operations contributed ¥9,095 million to comprehensive income for the period) and increased financial income from investment and fund management gains (¥2,597 million, versus ¥579 million in the previous period) contributed to a 15.9% increase in profit before tax. Operating cash flow rose 28.8% year on year to ¥40,567 million, reflecting improved cash generation capability as well.
Growth Strategy
Securing profitability in existing businesses while concentrating management resources on electrification and new business creation to transform the business portfolio
Following the completion of the closure of the unprofitable U.S. subsidiary and the promotion of selling price pass-through for cost increases, AT segment profit for FY2026 (ending March 2026) improved significantly to ¥15,683 million (up 26.1% year on year). The company expects a moderation in the order decline trend caused by the slowdown in BEV adoption and aims to secure profit in FY2027 (ending March 2027) as well.
Revenue from Motorcycle Clutches in India and the ASEAN region grew strongly, up 23.4% year on year. Increased AT business sales in China and Thailand also contributed, with operating profit in the Asia and Oceania region up 23.9% year on year. The company continues to strengthen cost competitiveness through the promotion of local procurement.
Through the establishment of the new Strategic Business Division (organizational reform in April 2025), management resources are being concentrated on new businesses related to electrification. R&D expenses have been actively increased in the "Others" segment, which recorded a loss of ¥2,840 million in FY2026 (ending March 2026) as advance investment accelerated. Visualizing the return on this investment remains a future challenge.
In the previous fiscal year, the unprofitable U.S. subsidiary was closed, turning the Americas region's operating income from a loss to a profit of approximately ¥500 million. The company continues to promote improved equipment utilization rates and reduced expenses across the group, with a policy of absorbing cost increases stemming from inflation and rising crude oil prices through selling price pass-through.
Last updated: July 19, 2026