Open Up Group Inc.

Business Details

The Mechatronics Domain covers staffing, contracting, and outsourcing services for development, design, and operation/maintenance in the machinery and electrical equipment fields, while the IT Domain covers staffing, contracting, and outsourcing services for design, construction, operation, and maintenance related to IT infrastructure and IT development. From the third quarter of FY2026 (ending June 2026), the former "Mechatronics & IT Domain" was split and reorganized into the "Mechatronics Domain" and "IT Domain". With engineer staffing/contracting for domestic manufacturers and IT engineer staffing/contracting as its two pillars, this is the core segment group accounting for approximately 64% of Group revenue (total external revenue).

Recent Overview

Mechatronics Domain achieved higher revenue and profit on M&A contribution and stronger experienced-hire recruitment; IT Domain saw a slight revenue decline due to organizational integration effects but improved profit margin

The Mechatronics Domain consolidated A-Seven Holdings (A-Seven Plus / E-Tech) in October 2025, increasing active personnel; revenue reached ¥49,281 million (up 10.3% year on year for the same quarter), and segment profit was ¥6,275 million (up 6.6%). While the semiconductor, defense, aircraft, and plant fields remained firm, the automotive field was flat to somewhat weak due to tariff impacts and other factors. In the IT Domain, productivity declines and reductions in active personnel continued due to the effects of organizational integration in the previous consolidated fiscal year, and revenue was ¥30,690 million (down 0.3%), but segment profit improved to ¥3,112 million (up 6.7%) through cost management measures such as hiring restraint. Note that from this period, the segment classification has been split from "Mechatronics & IT Domain" into "Mechatronics Domain" and "IT Domain".

Key Products

Growth Drivers

• Increase in active personnel in the Mechatronics Domain and expansion of the automotive-related domain through the consolidation of A-Seven Holdings (A-Seven Plus / E-Tech) as a subsidiary
• Steady growth in the number of registered engineers through strengthened hiring of experienced personnel in addition to inexperienced hires
• Recovery trend in demand centered on advanced semiconductor fields amid expanding AI-related investment
• Continued solid personnel demand in the defense, aircraft, and plant fields backed by policy support and international circumstances
• Sustained IT engineer demand supported by resilient DX demand and corporate IT investment
• Improved profit margin in the IT Domain through hiring cost restraint and efficient cost management

Risks

• Risk of flat to sluggish personnel demand in the automotive field due to structural reforms by finished vehicle manufacturers, reassessment of development investment, tariff impacts, and geopolitical risk
• Impact on active personnel from selective and restrained investment trends in the semiconductor field
• Risk of demand decline due to progress in efficiency and in-house handling of IT development and operation/maintenance work driven by expanded use of generative AI
• Risk of continued productivity decline and reduction in active personnel due to organizational integration effects in the IT Domain
• Difficulty securing hiring numbers and rising hiring costs due to intensifying competition in the recruitment market
• Risk of delayed PMI (post-merger integration) and unrealized synergies after M&A
• Risk of failing to adapt to changes in the business environment where high-value-added technical domains and ability to solve customer issues determine competitiveness