ENVALITH
株式会社ヨロズ logo

YOROZU CORPORATION

7294・Prime Market・Transportation Equipment

Official website
株式会社ヨロズ logo
YOROZU CORPORATION7294

Business

Yorozu Corporation was founded in 1948 and is headquartered in Yokohama, specializing in automotive mechanism parts, body parts, and engine parts. The company consists of Yorozu itself and 19 consolidated subsidiaries, and operates a global manufacturing and sales structure across three regions: Japan, the United States, Mexico, Brazil, Thailand, China, India, and Indonesia. Its main products are Suspension Parts (front members, rear beams, lower arms, etc.) and body structural parts, which are supplied to major OEMs including the Nissan Group (approximately 63.8% of net sales), the Toyota Group, and the Honda Group. The company also manufactures and sells Dies & Equipment, with domestic operations handled by Yorozu Engineering Corporation. In 2022, the company transitioned to the Prime Market, and in 2024, it completed a new factory (YSMC) in Gifu Prefecture aimed at decarbonization.

Business Model

顧客である自動車OEMから受注した部品を、日本・米州・アジアの各地域拠点で製造し納入する受注生産型ビジネスモデルを採る。各地域の顧客工場に近接した生産拠点を構え、JIT（ジャスト・イン・タイム）供給体制を維持する。

売上高の約50%を米州が占め、日本・アジアが残りを分担する。金型・設備の製造販売も収益源の一つであり、新車投入時に一時的な売上増をもたらす。

合理化活動「Success 25V」による固定費削減と損益分岐点改善が収益改善の主軸となっている。

Company Strengths

In FY2026 (ending March 2026), sales by customer were ¥112,443 million to the Nissan Group (approximately 63.8% of composition), ¥24,177 million to the Toyota Group (up 10.5% year on year), and ¥19,782 million to the Honda Group, demonstrating a track record of stable supply to multiple major OEMs. The company maintains long-term business relationships while mitigating dependence on specific customers.

The company operates manufacturing subsidiaries in the United States (Tennessee and Alabama), Mexico (two sites), Brazil, Thailand, China (two sites), India, and Indonesia, building a supply structure in close proximity to customer OEMs' production locations. In FY2026 (ending March 2026), sales in the Americas segment reached ¥87,553 million, forming the Group's largest segment, ensuring business continuity through regional diversification.

In March 2024, the Yorozu Sustainable Manufacturing Center (YSMC), aiming for 100% decarbonization of production processes, was completed in Wanouchi Town, Gifu Prefecture, and began operations toward full production capacity from FY2026 (ending March 2026). This proprietary capital investment achieves both environmental response and production capacity expansion simultaneously, enhancing the company's ability to respond to customers' CO2 reduction requirements.

ENVALITH's Perspective

Operating profit of ¥3,980 million in FY2026 represents an approximately 13-fold increase year on year, a substantial recovery, but the operating margin remains at just 2.3%, still below the 2.5% recorded in FY2024. One of the main drivers of the profit recovery is the disappearance of the one-off factor of the ¥9,145 million impairment loss recorded in the prior period, making it important to distinguish between the structural effects of "Success 25V" and such one-off factors. The FY2027 forecast calls for operating profit of ¥3,300 million (down 17.1% year on year), pointing to renewed profit decline, and the durability of the profit improvement capability needs to be verified.

The FY2027 consolidated earnings forecast calls for revenue of ¥166,000 million (down 5.9% year on year) and operating profit of ¥3,300 million (down 17.1% year on year), pointing to lower revenue and profit. External factors—US tariff policy developments, continued production cuts by Japanese, US, and European OEMs in China, and heightened geopolitical risk—are acting in combination. The forecast assumes an exchange rate of ¥150 to the US dollar, and downside risk would emerge should the yen appreciate further.

In FY2026, the company acquired ¥3,828 million of treasury stock (a sharp increase from ¥141 million in the prior period), bringing the number of treasury shares held at period-end to 4,460 thousand shares (17.8% of shares issued). While the shareholder return stance is commendable, the equity ratio remains at a low 39.2% (versus 38.1% in the prior period), and long-term borrowings also increased to ¥25,052 million. Continued monitoring of cash flow trends is needed to determine whether rising financial leverage and share buybacks can be sustained simultaneously.

Growth Strategy

As the final year of YSP2026, the company will bring the "Success 25V" rationalization program to fruition while advancing electrification and ESG initiatives

Rationalization activities centered on fixed cost reduction, quality improvement, and yield improvement across the group. In FY2026, profit improvement was achieved across all segments—Japan, Americas, and Asia. In FY2027, as the final year of YSP2026, the company will continue to pursue "the fruition of six key measures."

Effective April 1, 2026, the company absorbed and merged five domestic subsidiaries, consolidating general administrative functions at the head office. This established a structure allowing each production site to focus on manufacturing, promoting group competitiveness and sustainable profitability improvement through elimination of administrative redundancy and standardization of business processes.

Preparatory costs for full production at YSMC, which commenced operations in the previous fiscal year, were also incurred in FY2026, but future earnings contribution is expected once full production capacity is established. The resolution of preparatory costs is expected to contribute to profit improvement in the Japan segment.

The company continues to promote negotiations with OEMs to pass through increases in raw material and energy costs. Inflation cost recovery was explicitly cited as a major factor behind increased revenue and profit in the FY2026 non-consolidated results, and is positioned as an important measure for improving profitability.

Last updated: July 19, 2026