Focus on Sales, Profit Margins and KPIs for the Engineering Staffing Business

「In this environment, we continued to focus on increasing value added through ongoing engineer training. As a priority measure for further growth, we have begun initiatives to improve engineers’ AI skills through the introduction of generative AI tools and to collaborate with business partners that promote participation in upstream projects. Regarding the utilization rate, we focused on maintaining an appropriate balance between strategic engineer development and deployment, resulting in progress broadly in line with plan during the current interim consolidated accounting period. This focus on development directly increased the market value of our engineers, resulting in a 4.4% year-on-year increase in dispatch rates. Recruitment of both newly graduated and experienced engineers progressed broadly in line with plan, and the number of engineers employed increased steadily. As a result, revenue from the Solutions business was ¥7,471 million, up 12.1% year on year, segment profit was ¥855 million, up 17.4%, the number of engineers employed was 2,105 as of the end of March 2026, and the utilization rate for the current interim consolidated accounting period was 96.9%.」

「In terms of profit, in addition to the increase in gross profit and improvement in project profit margins resulting from the above factors in the staffing and IT contracting businesses, the timing of certain selling, general and administrative expenses, including investments in generative AI and recruitment advertising costs, was pushed back. As a result, operating income, ordinary income, and interim net income attributable to owners of the parent are all expected to exceed the previous forecasts.」

「The management metrics emphasized in evaluating the growth potential of our core Solutions business were a 3.8% increase in dispatch rates and 2,155 engineers employed as of the end of September 2025, an increase of 188 from the end of the previous consolidated fiscal year.」

「In addition to hiring newly graduated engineers, we strengthened experienced-hire recruitment, increasing the number of engineers employed. The number deployed increased as engineers became operational earlier, raising the utilization rate from 96.3% to 98.1% and increasing revenue while improving the gross profit margin. As a result, revenue from the Solutions business was ¥6,666 million, up 21.2% year on year, segment profit was ¥729 million, up 92.5%, and the number of engineers employed was 1,946 as of the end of March 2025.」

「In this environment, we continued efforts to increase value added through engineer training, raising dispatch rates 4.0% year on year. We also continued strengthening the IT field, increasing both IT revenue and its share of revenue. The number of engineers employed and the number deployed increased as hiring was strengthened, and the utilization rate was 96.3%. As a result, revenue from the Solutions business was ¥5,502 million, up 7.8% year on year, segment profit was ¥378 million, down 20.8%, and the number of engineers employed was 1,713 as of the end of March 2024.」

「Demand for engineers remained firm among our major domestic manufacturing and IT-related clients, where chronic engineer shortages continued. In this environment, we continued efforts to increase value added through engineer training, which raised dispatch rates. We also continued strengthening the IT field, increasing both IT revenue and its share of revenue. The number of engineers employed and the number deployed increased as a result of stronger hiring and other initiatives. As a result, revenue from the Solutions business was ¥2,736 million, up 9.0% year on year, segment profit was ¥196 million, down 15.6%, and the number of engineers employed was 1,706 as of the end of December 2023.」

「The management metrics that our Group emphasizes in evaluating growth potential and profitability were revenue growth of 9.9%, an ordinary profit margin on revenue of 5.4% and ROE of 14.6%.」

「Demand for engineers remained firm among our major domestic manufacturing and IT-related clients, where chronic engineer shortages continued. In this environment, we continued efforts to increase value added through engineer training, which raised dispatch rates. We also continued strengthening the IT field, increasing both IT revenue and its share of revenue. The number of engineers employed and the number deployed increased as a result of stronger hiring and other initiatives. However, 213 newly graduated engineers joined the company in April 2023 following proactive hiring supported by a strengthened recruitment structure and enhanced corporate branding. Because more newly graduated engineers were hired than during the COVID-19 period and they generally take longer to become operational, this temporarily reduced the utilization rate. As a result, revenue from the Solutions business was ¥7,684 million, up 8.9% year on year, segment profit was ¥500 million, down 6.5%, and the number of engineers employed was 1,745 as of the end of June 2023.」

「Demand for engineers remained firm among our major domestic manufacturing and IT-related clients, where chronic engineer shortages continued. In this environment, we continued efforts to increase value added through engineer training, which raised dispatch rates. We also continued strengthening our recruitment structure through additional staffing and pursued proactive hiring through stronger corporate branding initiatives. As a result, the number of engineers employed and the number deployed increased, while the utilization rate remained high, at a level similar to the same period of the previous year. We also continued strengthening the IT field, increasing both IT revenue and its share of revenue. As a result, revenue from the Solutions business was ¥5,106 million, up 9.0% year on year, segment profit was ¥478 million, up 7.3%, and the number of engineers employed was 1,559.」

「As a result, for the first quarter of the current consolidated fiscal year-to-date period, revenue was ¥2,752 million, up 8.8% year on year, operating profit was ¥229 million, up 26.8%, ordinary profit was ¥237 million, up 12.8%, and quarterly net profit attributable to owners of the parent was ¥157 million, up 10.3%.」

「For the consolidated fiscal year, revenue growth increased 11.1%, the ordinary profit margin on revenue was 7.7%, and ROE was 10.9%. Revenue per engineer increased 1.4%, partly due to stronger initiatives in the IT field and efforts to increase value added through training technical employees. The number of engineers employed in the Solutions business increased by 63 from the end of the previous consolidated fiscal year, partly due to the resumption of hiring that had been restrained because of COVID-19.」

「Compared with the same period of the previous year, which was affected by COVID-19, revenue from dispatch operations increased due to an improved utilization rate resulting from more engineers being deployed and higher dispatch rates. We hired 139 newly graduated technical employees during the third quarter of the current consolidated fiscal year-to-date period and will continue strengthening recruitment. We also continued strengthening the IT field, increasing both IT revenue and its share of revenue.」

「The number of engineers employed declined due partly to the impact of restrained hiring in the previous consolidated fiscal year. However, in the second quarter of the current consolidated fiscal year-to-date period, the utilization rate improved substantially compared with the same period of the previous year, which was affected by COVID-19, and revenue increased year on year. We also continued strengthening the IT field, increasing both IT revenue and its share of revenue. As a result, revenue from the Solutions business was ¥4,683 million, up 9.6% year on year, and segment profit was ¥446 million, up 142.8%.」

「The number of engineers employed declined due partly to the impact of restrained hiring in the previous consolidated fiscal year. However, in the first quarter of the current consolidated fiscal year-to-date period, the utilization rate improved substantially from the same period of the previous year, when the business was affected by COVID-19, and revenue increased year on year. We also continued efforts to increase value added through training technical employees and worked to raise dispatch rates. As a result, revenue from the Solutions business was ¥2,329 million, up 11.2% year on year, and segment profit was ¥212 million, up 324.1%.」

「The company continued initiatives in the IT and growth-industry fields and worked to raise dispatch rates. However, delays in securing contracts for some newly graduated technical employees who joined in April 2021 and some existing technical employees due to the spread of COVID-19 caused the utilization rate to remain below the level of the previous year, resulting in lower revenue. The utilization rate has been recovering since the beginning of the fiscal year. As a result, revenue from the engineer staffing business was ¥6,423 million, up 0.6% year on year, and segment profit was ¥250 million, down 30.7%.」

「The number of engineers employed in the engineer staffing business increased year on year, and we also worked to raise dispatch rates by strengthening initiatives in the IT and growth-industry fields. However, demand for engineer staffing showed signs of stagnating due to the spread of COVID-19, while some newly graduated technical employees who joined in April 2020 and some existing technical employees experienced delays in securing contracts. The utilization rate remained below the level of the same period of the previous year but has been improving since the beginning of the fiscal year. In addition, overtime hours declined as clients promoted teleworking. As a result, revenue from the engineer staffing business was ¥4,272 million, down 0.7% year on year, and segment profit was ¥184 million, down 49.5%.」

「The number of engineers employed in the engineer staffing business increased year on year, and we also worked to raise dispatch rates by strengthening initiatives in the IT and growth-industry fields. However, demand for engineer staffing showed signs of stagnating due to the spread of COVID-19, while some newly graduated technical employees who joined in April 2020 and some existing technical employees experienced delays in securing contracts. The utilization rate remained below the level of the same period of the previous year. As a result, revenue from the engineer staffing business was ¥2,095 million, down 3.4% year on year, and segment profit was ¥50 million, down 77.4%.」

「For the consolidated fiscal year, revenue growth increased 10.5%, the ordinary profit margin on revenue was 4.6%, and ROE was 11.8%. Revenue per engineer increased 5.0%, partly because technical employees shifted toward IT and growth industries. The number of engineers employed in the engineer staffing business increased by 154 from the end of the previous consolidated fiscal year.」

「The number of engineers employed in the engineer staffing business increased year on year, and order volumes remained firm. We also worked to raise dispatch rates by promoting transfers to higher-value-added work. However, during the third quarter of the consolidated fiscal year-to-date period (April–June 2020), demand for engineers showed signs of stagnating, particularly in the Tokyo metropolitan area, due to the spread of COVID-19. Some newly graduated technical employees who joined in April 2020 and some existing technical employees experienced delays in securing contracts, and the utilization rate remained below the level of the same period of the previous year. As a result, revenue from the engineer staffing business was ¥6,384 million, up 15.0% year on year, and segment profit was ¥361 million, up 0.3%.」

「Engineer staffing benefited from the chronic labor shortages at major manufacturers and systems integrators, including orders from new clients. Order volumes from existing clients remained firm. The number of engineers employed increased year on year, and the utilization rate was maintained at a high level. We also worked to raise dispatch rates by promoting transfers to higher-value-added work. As a result, revenue from the engineer staffing business was ¥4,301 million, up 18.6% year on year, and segment profit was ¥364 million, up 21.1%.」

「Engineer staffing benefited from the chronic labor shortages at major manufacturers and systems integrators, including orders from new clients. Order volumes from existing clients remained firm. The number of engineers employed increased year on year, and the utilization rate was maintained at a high level. We also worked to raise dispatch rates by promoting transfers to higher-value-added work. As a result, revenue from the engineer staffing business was ¥2,168 million, up 16.2% year on year, while segment profit was ¥221 million, down 2.7%.」

「For the consolidated fiscal year, revenue growth was 14.2%, the ordinary profit margin on revenue was 6.2%, and return on equity (ROE) was 16.8%. Revenue per engineer increased 7.9%, partly because technical employees shifted toward cutting-edge technology and growth industries. The number of engineers employed in the engineer staffing business increased by 129 from the end of the previous consolidated fiscal year, partly because we hired more newly graduated engineers than in the previous year.」

「Engineer staffing benefited from the chronic labor shortages at major manufacturers and systems integrators, including orders from new clients. Order volumes from existing clients remained firm, and the utilization rate was maintained at a high level. We also hired more newly graduated engineers than in the previous year and promoted more diverse recruitment, including female and foreign engineers. Dispatch rates also increased as assignments to higher-value-added work progressed, together with higher rates at the same assignment and higher rates achieved by changing assignments. As a result, revenue from the engineer staffing business was ¥5,551 million, up 13.6% year on year, and segment profit was ¥360 million, up 5.4%.」

「Engineer staffing benefited from the chronic labor shortages at major manufacturers and systems integrators, including orders from new clients. Order volumes from existing clients remained firm, and the utilization rate was maintained at a high level. We also secured more hires of newly graduated engineers than in the previous year and promoted more diverse recruitment, including female and foreign engineers. Dispatch rates also increased as assignments to higher-value-added work progressed, together with higher rates at the same assignment and higher rates achieved by changing assignments. As a result, revenue from the engineer staffing business was ¥3,626 million, up 15.4% year on year, and segment profit was ¥300 million, up 30.4%.」

「Engineer staffing benefited from the chronic labor shortages at major manufacturers and systems integrators, including orders from new clients. Order volumes from existing clients remained firm, and the utilization rate was maintained at a high level. We also hired more newly graduated engineers in the fall recruitment cycle than in the previous year and promoted more diverse recruitment, including female and foreign engineers. Order prices also increased as assignments to higher-value-added work progressed, together with charge-ups, which raise the billing rate at the same assignment, and strategic transfers, which raise the billing rate by changing the assignment. As a result, revenue from the engineer staffing business was ¥1,865 million, up 18.0% year on year, and segment profit was ¥227 million, up 56.4%.」

「Engineer staffing benefited from the chronic labor shortages at major manufacturers and systems integrators, including orders from new major manufacturing clients. Order volumes from existing clients remained firm, and the utilization rate was maintained at a high level. We also hired more newly graduated engineers than in the previous year and promoted more diverse recruitment, including female and foreign engineers. Order prices also increased as assignments to higher-value-added work progressed, together with charge-ups, which raise the billing rate at the same assignment, and strategic transfers, which raise the billing rate by changing the assignment. As a result, revenue from the engineer staffing business was ¥6,665 million, up 18.0% year on year, and segment profit was ¥524 million, up 35.9%.」

「Engineer staffing benefited from the chronic labor shortages at major manufacturers and systems integrators, particularly from increased orders generated by developing new automotive-related clients. Orders and order prices from existing clients also remained firm. Although the utilization rate temporarily declined after 149 newly graduated engineers joined the company in April, new graduates became operational earlier than in the same period of the previous year, contract prices rose substantially, and assignments to higher-value-added work progressed. Contract prices also increased through charge-ups, which raise the billing rate at the same assignment, and strategic transfers, which raise the billing rate by changing the assignment, contributing to earnings.」

「Engineer staffing benefited from the chronic labor shortages at major manufacturers and systems integrators, particularly from increased orders from new major manufacturing clients. Orders and order prices from existing clients also remained firm, and the utilization rate was maintained at a high level. In addition, assignments to higher-value-added work progressed, while contract prices increased through charge-ups, which raise the billing rate at the same assignment, and strategic transfers, which raise the billing rate by changing the assignment. We also increased the recruitment of female and foreign engineers. As a result, revenue from the engineer staffing business was ¥3,142 million and segment profit was ¥230 million.」

「Engineer staffing benefited from the chronic labor shortages at major manufacturers and systems integrators, particularly from increased orders from new major manufacturing clients. Orders and order prices from existing clients also remained firm, and the utilization rate was maintained at a high level. In addition, assignments to higher-value-added work progressed, while contract prices increased through charge-ups, which raise the billing rate at the same assignment, and strategic transfers, which raise the billing rate by changing the assignment.」

「We focus on revenue, revenue growth, gross profit margin, operating margin, ordinary profit margin and their growth rates as indicators for evaluating the growth potential and profitability of each business. We also manage revenue per engineer, the number of engineers employed and the utilization rate as key KPIs, as these are components of revenue in our core engineer staffing business.」