Open Up Group Inc.
2154・Prime Market・Services
Business
OpenUp Group Inc. is a domestic engineer/technician staffing and outsourcing group centered on the Mechatronics & IT and Construction segments. Its core businesses are staffing of machinery, electrical/electronic, and IT engineers (Mechatronics & IT segment: revenue of ¥101,504 million) and staffing of construction site supervisors and CAD operators for the construction industry (Construction segment: revenue of ¥56,904 million). The overseas segment is being restructured with a focus on Asia following the sale of its UK business. Major clients include domestic manufacturers, IT companies, and construction firms. Consolidated revenue for FY2025 (ended June 2025) was ¥187,954 million. Listed on the Tokyo Stock Exchange Prime Market.
Business Model
The company hires new graduates, mid-career professionals, and inexperienced candidates, develops them through training centers and qualification support programs, and then provides them to client companies through staffing or contract arrangements. Revenue is structured as the number of deployed personnel multiplied by contract unit price, with the expansion of the in-house engineer headcount (including through M&A) and the shift toward higher unit prices for mid-level engineers serving as the primary drivers of margin improvement. The company's management policy centers on maximizing LTV (lifetime value) through reduced recruitment costs and improved retention rates.
Company Strengths
In the mid-term management plan "BY25" formulated in August 2021, the company recorded revenue of ¥187,954 million (up 8.5% year on year) and operating profit of ¥16,244 million (up 13.6% year on year), achieving the initial target of ¥16.0 billion in operating profit. The track record of completing the plan through both organic growth and M&A demonstrates strong management execution capability.
In the Mechatronics/IT segment, revenue for FY2025 (ended June 2025) was ¥101,504 million (up 11.5% year on year), segment profit was ¥11,022 million (up 23.4% year on year), with a profit margin of 10.9%. Unit price improvement from the shift toward mid-level engineers and reduced recruitment costs boosted the profit margin, supporting the group's overall earnings base.
In the Construction segment, revenue for FY2025 (ended June 2025) was ¥56,904 million (up 26.5% year on year), with a segment profit margin of 13.2%. Contract unit prices improved against the backdrop of structural supply-demand tightness in the construction industry due to the aging of engineers and a shortage of younger workers. The contribution of IR Co., Ltd. (consolidated as a subsidiary in October 2024) also added to the increase in headcount.
ENVALITH's Perspective
Performance Trend
The company achieved five consecutive periods of revenue and profit growth from FY2021 through FY2025, but FY2026 (ending June 2026) has turned to a revenue decline phase due to the drop-off in sales following the divestiture of the UK business (executed in Q3 of the previous fiscal year). Cumulative revenue for the first three quarters was ¥125,269 million (down 14.7% year on year). Meanwhile, profitability continued to improve, with gross margin at 27.7% (up 3.0 percentage points year on year), operating profit of ¥13,679 million (up 6.0%), and quarterly profit attributable to owners of the parent of ¥9,713 million (up 11.2%). Full-year guidance remains unchanged at revenue of ¥171,000 million (down 9.0% year on year), operating profit of ¥16,500 million (up 1.6%), and profit attributable to owners of the parent of ¥11,800 million (down 6.0%). In terms of the external environment, expanding AI-related investment is driving a recovery in demand for advanced semiconductor fields, and steady demand in the defense and aircraft sectors is supporting the electromechanical segment, while tariff impacts and geopolitical risks in the automotive sector have emerged as downward pressures.
Growth Strategy
Through a focus on the domestic engineer domain and the use of M&A, the company aims to achieve revenue of ¥200,000 million and operating income of ¥20,000 million in FY2028 (ending June 2028).
In addition to hiring inexperienced candidates, the company has strengthened recruitment of experienced engineers, steadily building up the number of engineers on staff. In October 2025, it consolidated Eiseb Holdings (Eiseb Plus and E-Tech), expanding headcount in the mechatronics/electrical engineering domain. Cumulative nine-month revenue in this segment grew 10.3% year on year, with growth continuing.
The consolidation of IR Co., Ltd. (October 2024) expanded the scale of the construction domain. On the other hand, existing operations continue to face challenges such as reduced productivity and a decline in the number of engineers on assignment due to the effects of organizational integration. Measures to improve the quality of hiring and reduce the turnover rate are being implemented. The segment profit margin remained at a high level of 13.9%.
In the third quarter of the previous fiscal year, the company sold its UK business (BeNEXT UK Holdings Limited), completing its focus on the engineer domain. Gross profit margin has structurally improved (27.7%, up 3.0 points year on year), and the company is progressing toward an earnings structure capable of achieving profit growth even amid declining revenue.
Due to the effects of the organizational integration in the previous fiscal year, some areas continue to experience declines in productivity and the number of engineers on assignment. The company is promoting efficient cost management, including restraint on hiring, and IT domain segment profit reached ¥3,112 million, up 6.7% year on year. Responding to high-value-added technology areas amid the expanding use of generative AI is key to competitiveness.
The annual dividend forecast for FY2026 (ending June 2026) is ¥85 (an increase from ¥75 in the previous fiscal year). An interim dividend of ¥35 was already paid at the end of the second quarter. Share buybacks of ¥3,983 million have also been implemented. The company continues its policy of a dividend payout ratio of 50% or more and progressive dividends, emphasizing the stability of shareholder returns.
Last updated: July 17, 2026