# ARE Holdings, Inc.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, IFRS
> Unit: JPY millions
> Sources: 有価証券報告書－第17期(2025/04/01－2026/03/31) (S100YBFP)
> Page: https://vizora.meequs.com/en/company/are-holdings
> Retrieved: 2026-09-30T19:59:58.396Z

## Company

ARE Holdings, founded in 2009, is a company in Non-ferrous Metals & Wires listed on TSE Prime. It has 998 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | ARE Holdings, Inc. |
| Ticker | 5857 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/5857.T) |
| Listing | TSE Prime |
| Head office | 神戸市中央区加納町四丁目4番17号 |
| Representative (per filing) | 代表取締役社長 東浦 知哉 |
| Founded | Apr 2009 |
| Share capital | ¥20.2B |
| Employees (consolidated) | 998 |
| Average salary (parent only) | ¥8M |
| Fiscal year end | March |
| Website | are-holdings.com (https://are-holdings.com/) |
| Corporate number | 4140001030937 |
| EDINET | E21187 |
| Industries (Vizora) | Non-ferrous Metals & Wires, Waste Management & Recycling |

> Profile source: annual securities report (S100YBFP, filed 2026-06-15). As of filing

## Five-axis industry profile

Primary industry: Non-ferrous Metals & Wires (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 90 | 25 |
| Profitability | 59.6 | 26 |
| Cash conversion | 2 | 25 |
| Efficiency | 53.7 | 27 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 100% of ARE Holdings's sales come from Precious metals, with Other making up much of the rest.
- Out of every ¥100 of sales, about ¥6 is left as operating profit.
- Revenue changed +12.6% from the prior year, operating profit +85.6%.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥570B |  |
| Operating income | ¥37.1B | Margin 6.5% |
| Net income | ¥24.4B | Margin 4.3% |
| Free cash flow | -¥108.5B |  |
| Largest business | Precious metals | of segment revenue 100.0% |
| Employees (consolidated) | 998 |  |
| EPS | ¥315.49 |  |
| Diluted EPS | ¥287.15 |  |
| Book value per share | ¥1290.73 |  |
| Equity ratio | 37.5% | Derived from disclosed figures |
| Shares outstanding | 86,853,534 |  |
| Treasury shares | 124,900 |  |
| Shareholders | 40,275 |  |
| Average salary (parent only) | ¥8M | Filing company only |
| Cash ratio | 1.7% | Cash ÷ revenue 1.8% |
| Vs. industry median margin | +0.9 pp | Non-ferrous Metals & Wires |
| ROE | 13.7% | Derived from disclosed figures |
| ROA | 4.4% | Derived from disclosed figures |

## Notable figures

- FY2026, revenue is 3.0× its level five years ago
- FY2026, one segment accounts for 95% of positive segment profit
- FY2026, cash is 2% of total assets

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥164776000000 | ¥569992000000 | +245.9% |
| Operating income | ¥25126000000 | ¥37088000000 | +47.6% |
| Operating margin | 15.2% | 6.5% | -8.7 pp |
| Employees | 1,510 people | 998 people | -33.9% |
| Cash and equivalents | ¥10023000000 | ¥10336000000 | +3.1% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 貴金属 → 貴金属 | 87.9% |
| 環境保全 → 事業再編・廃止 | 12.1% |
| 新設・再編 → 貴金属 | 12.1% |
| 新設・再編 → その他 | 0.0% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 569,992 | 100.0% | S100YBFP |
| Cost of revenue | 525,170 | 92.1% | S100YBFP |
| Gross profit | 44,822 | 7.9% | S100YBFP |
| SG&A | 9,566 | 1.7% | S100YBFP |
| Operating income | 37,088 | 6.5% | S100YBFP |
| Pretax income | 34,706 | 6.1% | S100YBFP |
| Income tax | 10,295 | 1.8% | S100YBFP |
| Net income | 24,411 | 4.3% | S100YBFP |
| Net income attributable to owners | 24,441 | 4.3% | S100YBFP |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 92 |
| SG&A | 2 |
| Operating income | 6 |
| (Ref.) Net income | 4 |

### Margin funnel

Gross margin 7.9% → Operating margin 6.5% → Net margin 4.3%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +12.6%; Core profit growth: +85.6%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 6.79×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 506,211 | 569,992 | 63,781 | +12.6% |
| Gross profit | 28,943 | 44,822 | 15,879 | +54.9% |
| Operating income | 19,984 | 37,088 | 17,104 | +85.6% |
| Net income attributable to owners | 14,319 | 24,441 | 10,122 | +70.7% |
| Operating cash flow | 14,685 | -99,385 | -114,070 | -776.8% |
| Free cash flow | 6,963 | -108,534 | -115,497 | -1658.7% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2017 | 106,828 | — | — | -1,213 | 3,319 | — | S100LJ0R |
| FY ending Mar 2018 | 115,797 | — | — | 9,416 | -13,397 | — | S100O8TA |
| FY ending Mar 2019 | 110,412 | — | — | 9,000 | -20,648 | — | S100R05Y |
| FY ending Mar 2020 | 135,563 | 18,010 | 13.3% | 9,846 | 4,572 | 438 | S100LJ0R |
| FY ending Mar 2021 | 164,776 | 25,126 | 15.2% | 25,725 | -33,353 | -38,773 | S100O8TA |
| FY ending Mar 2022 | 192,442 | 26,446 | 13.7% | 18,735 | 11,103 | 2,346 | S100R05Y |
| FY ending Mar 2023 | 274,209 | 16,282 | 5.9% | 10,929 | 36,754 | 31,624 | S100TNDP |
| FY ending Mar 2024 | 322,253 | 12,367 | 3.8% | 24,490 | 12,621 | 4,204 | S100VYWM |
| FY ending Mar 2025 | 506,211 | 19,984 | 3.9% | 14,319 | 14,685 | 6,963 | S100YBFP |
| FY ending Mar 2026 | 569,992 | 37,088 | 6.5% | 24,441 | -99,385 | -108,534 | S100YBFP |

## People and productivity（FY ending Mar 2026, consolidated, IFRS）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥571.1M |
| Operating income per employee (consolidated) | ¥37.2M |
| Net income per employee (consolidated) | ¥24.5M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 1,457 | 1,467 | 952 | 979 | 998 |
| Average salary (parent company) | ¥8.3M | ¥9.1M | ¥8M | ¥7.9M | ¥8M |
| Average age (parent company) | 50.0 years | 47.0 years | 43.0 years | 42.0 years | 42.0 years |
| Average tenure (parent company) | 2.0 years | 4.0 years | 1.0 years | 2.0 years | 2.0 years |

Year over year: Employees (consolidated) +1.9% · Revenue (consolidated) +12.6%

## Segments（FY ending Mar 2026, consolidated, IFRS、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Precious metals | 569,863 | 100.0% | 35,424 | 6.2% |
| Environmental preservation | — | 0.0% | 1,845 | — |
| Other | 129 | 0.0% | -181 | -140.3% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Profit share | Margin |
| --- | ---: | ---: |
| Precious metals | 95.0% | 6.2% |
| Environmental preservation | 5.0% | — |
| Other | — | -140.3% |

Loss-making segment (excluded from profit shares): Other -181 JPY mn

Segment → industry: Precious metals → Non-ferrous Metals & Wires / Environmental preservation → Waste Management & Recycling

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | -99,385 | -17.4% | S100YBFP |
| Capital expenditure | 9,149 | 1.6% | S100YBFP |
| Free cash flow | -108,534 | -19.0% | 算出 |
| Investing cash flow | -349 | -0.1% | S100YBFP |
| Financing cash flow | 91,878 | 16.1% | S100YBFP |
| Dividends paid | 7,662 | 1.3% | S100YBFP |
| Change in cash | -7,219 | -1.3% | S100YBFP |
| Cash and equivalents | 10,336 | 1.8% | S100YBFP |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 6,127 | 17,952 | 6,881 | 17,555 | 10,336 | S100TNDP, S100VYWM, S100YBFP |
| Total assets | 298,387 | 287,448 | 317,998 | 490,037 | 615,388 | S100R05Y, S100TNDP, S100VYWM, S100YBFP |
| Net assets | 105,137 | 106,957 | 126,476 | 126,349 | 230,555 | S100TNDP, S100VYWM, S100YBFP |
| Share capital | 7,790 | 7,790 | 7,790 | 7,790 | 20,233 | S100R05Y, S100TNDP, S100VYWM, S100YBFP |
| Property, plant and equipment | 43,748 | 42,553 | 33,192 | 36,464 | 41,800 | S100R05Y, S100TNDP, S100VYWM, S100YBFP |
| Goodwill | 1,040 | 1,003 | 19 | 19 | — | S100R05Y, S100TNDP, S100VYWM, S100YBFP |
| Current assets | 241,778 | 238,374 | 253,773 | 419,630 | 536,998 | S100R05Y, S100TNDP, S100VYWM, S100YBFP |
| Total liabilities | 193,250 | 180,491 | 191,522 | 363,688 | 384,833 | S100R05Y, S100TNDP, S100VYWM, S100YBFP |
| Equity attributable to owners of parent | 105,137 | 106,957 | 126,476 | 126,301 | 230,555 | S100R05Y, S100TNDP, S100VYWM, S100YBFP |
| Retained earnings | 92,353 | 96,319 | 113,837 | 121,679 | 138,497 | S100R05Y, S100TNDP, S100VYWM, S100YBFP |
| Treasury stock | -1,819 | -5,925 | -5,925 | -6,066 | -1,657 | S100R05Y, S100TNDP, S100VYWM, S100YBFP |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 2% | S100YBFP |
| Property, plant and equipment | 7% | S100YBFP |
| Other assets | 91% | S100YBFP |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 63% | S100YBFP |
| Equity | 37% | S100YBFP |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 298,387 | 287,448 | 317,998 | 490,037 | 615,388 |
| Equity | 105,137 | 106,957 | 126,476 | 126,349 | 230,555 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 6,127 | 17,952 | 6,881 | 17,555 | 10,336 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 7.3% | S100YBFP |
| Fixed assets ÷ total assets | 6.8% | S100YBFP |
| Goodwill ÷ parent equity | — | —, S100YBFP |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 1.7% |
| Cash ÷ revenue | 1.8% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | -268.0% |
| Cash vs. profit gap | -123,826 JPY mn (of net income -506.6%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 31.3% |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 1.6% |
| Investing CF relative to operating CF | — |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 9.7% | 0.64× | 6.3% | 2.84× | 17.8% | S100R05Y |
| 2023 | 4.0% | 0.94× | 3.7% | 2.76× | 10.3% | S100TNDP |
| 2024 | 7.6% | 1.06× | 8.1% | 2.59× | 21.0% | S100VYWM |
| 2025 | 2.8% | 1.25× | 3.5% | 3.20× | 11.3% | S100YBFP |
| 2026 | 4.3% | 1.03× | 4.4% | 3.10× | 13.7% | S100YBFP |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行㈱（信託口） | Major shareholder | 14.6% | 2026-03-31 |
| ㈱日本カストディ銀行（信託口） | Major shareholder | 6.0% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505223 （常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 2.3% | 2026-03-31 |
| J.P. MORGAN BANK LUXEMBOURG S.A. 384513 （常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 2.2% | 2026-03-31 |
| 寺山 満春 | Major shareholder | 2.1% | 2026-03-31 |
| ㈱日本カストディ銀行（信託口４） | Major shareholder | 1.8% | 2026-03-31 |
| 寺山 正道 | Major shareholder | 1.6% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505001 （常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 1.5% | 2026-03-31 |
| EUROCLEAR BANK S.A./N.V. （常任代理人 ㈱三菱ＵＦＪ銀行） | Major shareholder | 1.4% | 2026-03-31 |
| CEPLUX-ERSTE GROUP BANK AG (UCITS CLIENTS) （常任代理人 シティバンク、エヌ・エイ東京支店） | Major shareholder | 1.3% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for the FY ending Mar 2026 was ¥570B, up +12.6% from ¥506.2B.
- Profit grew far faster: operating income rose +85.6% from ¥20B to ¥37.1B, and net income rose +70.7% from ¥14.3B to ¥24.4B.
- Cash moved the other way. Operating cash flow swung from ¥14.7B to -¥99.4B, which the company attributes mainly to a build-up of inventory and payments to suppliers.

### Drivers

- In domestic recycling, better per-deal pricing in jewelry and a leaner cost base in dental lifted profit even though collected volumes fell
- Electronics volumes were flat, but profit rose, helped in part by precious metal prices
- In North America, more gold and silver feedstock came in for refining, and the products, storage and trading lines all earned more

### Risks

- Swings in precious metal prices and exchange rates hit results, and rhodium is hard to hedge because its market is thin
- Buying feedstock and prepaying suppliers can push up funding needs, and higher rates or market turmoil could make that money more expensive
- The North American arm also trades and lends, so a weaker credit picture among counterparties could lead to losses

Cited: Annual Securities Report, 17th fiscal period (Management's discussion and analysis); Annual Securities Report, 17th fiscal period (Business risks)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第17期(2025/04/01－2026/03/31) | S100YBFP | 2026-06-15 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YBFP,, |
| 有価証券報告書－第16期(2024/04/01－2025/03/31) | S100VYWM | 2025-06-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VYWM,, |
| 有価証券報告書－第15期(2023/04/01－2024/03/31) | S100TNDP | 2024-06-19 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TNDP,, |
| 有価証券報告書－第14期(2022/04/01－2023/03/31) | S100R05Y | 2023-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R05Y,, |
| 有価証券報告書－第13期(令和3年4月1日－令和4年3月31日) | S100O8TA | 2022-06-15 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100O8TA,, |
| 有価証券報告書－第12期(令和2年4月1日－令和3年3月31日) | S100LJ0R | 2021-06-16 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LJ0R,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).