Investment Thesis
World #1 automotive glass ('one in four cars worldwide'). FY2026 guidance: ¥2,200B sales / ¥150B OP (+22.5B YoY). Automotive OP more than doubled in FY2025 (+¥15.3B to ¥29.3B). EV premium products (smart glass, LiDAR-integrated windshields, PHUD) showcased at IAA 2025. P/B 0.71x — below book for global #1. 3.6% yield.
Risk
ROE only 4.7% — low vs sector peers, explains P/B discount. Net debt -¥550B (¥100B cash vs ¥651B debt). Chinese competitor Fuyao expanding globally. EV smart glass still small share of total revenue. FY2026 OP target ¥150B is minimum mgmt commitment.
Monitoring Trigger
Watch May 8 FY2025 Q1 results (actual FY2026 starts). Target: FY2026 OP ≥¥130B in H1 to be on pace. Smart glass design win announcement = upgrade catalyst. ROE reaching 6%+ = P/B re-rating.
Key Dates
Key Metrics
Business Segments
| Segment | Revenue | Share | Description |
|---|---|---|---|
| Automotive Glass | ¥650B | 32% | World #1. Tesla confirmed supplier |
| Architectural Glass | ¥550B | 27% | Building materials |
| Electronics | ¥470B | 23% | Display glass, substrates |
| Chemicals & Ceramics | ¥370B | 18% | Chlor-alkali, ceramics |
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| confirmed | Toyota / Honda / Nissan | OEM automotive glass (windshields, side, rear) | AGC Automotive #1 globally in 15 countries. 'One in four cars worldwide is fitted with AGC glass.' |
| probable | Tesla | Automotive glass (OEM and replacement) | AGC's replacement glass arm (AGC-ARG) supplies Tesla service. OEM supply highly probable given global #1 position. Note: prior 'confirmed' evidence cited AGP (now separate entity, not AGC parent). |
| probable | Mercedes-Benz / European OEMs | Smart glass (electrochromic, PHUD, sensor-integrated) | AGC Automotive Europe showcased at IAA Mobility Sep 2025: smart glazing, LiDAR/camera windshield integration, photovoltaic glass. |
Primary IR Documentation
Values and insights cited from official company IR releases (earnings, 決算短信, MoUs, presentations).
Cites: Primary IR portal — IR calendar, library, financial results
https://www.agc.com/en/ir/
Cites: AGC FY2025 results / 'Toward Profitability Improvement' deck — includes FY2026 guidance ¥2,200B sales / ¥150B OP
https://www.agc.com/en/news/pdf/20260206e.pdf
Cites: AGC analyst Q&A — discusses automotive business momentum
https://www.agc.com/en/ir/library/briefing/pdf/2025_0512eQA.pdf