TORQ Inc.

Business Details

A single segment engaged primarily in the wholesale of fasteners centered on bolts and nuts, Concrete Product-Related Hardware, and Machine Tools, among others. Its main customers are in the construction industry, and it has built a sales network across the group, including subsidiaries Kobax Corporation and Owa Hagane Kogyo Co., Ltd. Digitalization through the web ordering system "NejiNet" and expansion of the range of items handled form the pillars of its growth strategy. In the first half of FY2026 (ending March 2026) (November 2025 to April 2026), both sales and profits declined significantly due to the deterioration of the construction market.

Recent Overview

Due to the deterioration of the construction market, interim net sales and operating profit fell sharply, down 6.6% and 43.4% year on year respectively

In the first half of FY2026, ending March 2026 (November 2025 to April 2026), a severe labor shortage and soaring material prices at construction sites continued to cause stagnation in the start and progress of construction work, and the volume of steel frame demand fell to a level below that of past recessionary periods. Net sales came to ¥10,606 million (down 6.6% year on year) and operating profit to ¥326 million (down 43.4% year on year), representing a significant decline in both revenue and profit. Although the company implemented measures such as improving the functionality of "NejiNet" and expanding the range of items handled, these were not sufficient to offset the deterioration in the external environment. In addition, in March 2026, the company retired 2,000,000 shares of treasury stock (reducing capital surplus by ¥509 million, retained earnings by ¥22 million, and treasury stock by ¥543 million, respectively). The full-year performance forecast remains unchanged at net sales of ¥21,000 million and operating profit of ¥650 million.

Key Products

Growth Drivers

• Improving customer convenience and order efficiency through further enhancement of the web ordering system "NejiNet"
• Capturing demand in the low-price segment and increasing the number of items handled through expansion of the imported product lineup
• Capturing demand from port development, high-speed rail, Noto Peninsula earthquake reconstruction, and urban redevelopment projects in the Concrete Product-Related Hardware segment
• Strengthening information linkage with business partners and improving operational efficiency through introduction of the inventory management system "NejiKura"
• Expanding business areas through M&A and alliances, and providing support to companies lacking successors

Risks

• Stagnation in construction starts and progress due to severe labor shortages and response to overtime work regulations at construction sites, and a decline in steel frame demand to levels below past recessionary periods
• Sustained high prices for construction materials and energy, and rising labor costs suppressing customers' capital expenditure and causing construction delays
• Soaring raw material and energy prices due to U.S. trade policy trends, geopolitical risk, and exchange rate fluctuations
• Limited room for growth due to market maturity in the fasteners industry and intensifying price competition with rivals
• The full-year performance forecast for FY2026, ending March 2026 anticipates a significant decline in profit, with net sales of ¥21,000 million (down 6.8% year on year) and operating profit of ¥650 million (down 35.6% year on year), requiring a recovery in the second half