UT Group Co.,Ltd.

Business Details

This was the former segment that provided temporary staffing and outsourcing services mainly to major domestic manufacturers in the transportation equipment, electronics, and industrial machinery fields. From Q1 of FY2026 (ending March 2026), it was reorganized into four segments: the Motor & Energy Business (automotive-related), the Semiconductor Business, the Agent Business, and the Next Career Business, and independent disclosure of results as a standalone segment has ceased. Based on restated figures for the prior fiscal year (FY2025, ended March 2025), the main portion of the former Manufacturing Business was carried over into the Motor & Energy Business (net sales of ¥46,368 million) and the Semiconductor Business (net sales of ¥36,512 million).

Recent Overview

The former segment has been fully reorganized into four businesses. The automotive-related business saw higher sales and profit despite tariff-related demand weakness, while the semiconductor-related business performed steadily

From Q1 of FY2026, the former Manufacturing Business was reorganized into four segments. In the Motor & Energy Business, despite subdued staffing demand due to the impact of U.S. tariff policy, an inflow of approximately 1,000 staff from the Agent Business helped achieve a 12.2% increase in net sales and a 34.0% increase in segment profit. In the Semiconductor Business, capital investment for advanced processes and memory supported staffing demand, resulting in a 3.1% increase in net sales and a 28.2% increase in segment profit. Unit-price negotiations and optimized staff allocation at outsourced workplaces contributed to improved profitability. The reporting segments are scheduled to be changed to a single segment from Q1 of FY2027.

Key Products

Growth Drivers

• Robust demand for engineering talent driven by continued capital investment in semiconductors and advanced processes (Semiconductor Business)
• Improved gross margin resulting from a review of recruitment methods and successful unit-price negotiations
• Strengthened supply capability in regions/industries with recruitment difficulties through expanded utilization of foreign workers such as Nikkei Brazilians
• Diversification of revenue sources and a significant increase in job openings from the launch of the employment placement service
• Improved retention and rehire rates and strengthened human capital investment through introduction of an employee stock compensation plan

Risks

• Continued sluggishness and uncertainty in staffing demand, centered on the automotive industry, due to the impact of U.S. tariff policy and similar factors
• Deterioration in recruitment efficiency and a net decline in the number of technical staff employees due to rising hiring costs and increased job-advertising media costs
• As the segment is scheduled to be changed to a single segment from Q1 of FY2027 (ending March 2027), ongoing business-by-business performance comparison will become impossible
• Rising difficulty of recruitment and intensifying competition for talent amid a declining working-age population
• Risk of short-term mismatches between staffing supply and demand due to fluctuations in client companies' production plans