Techfirm Holdings Inc.
3625・Growth Market・Information & Communication
ICT Solutions
Core group business handling contract development and operation/maintenance leveraging advanced technology
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (cumulative nine months of FY2026, ending June 2026) | ¥4,872 million | ¥4,605 million (cumulative nine months of FY2025, ending June 2025) | ↑ |
| Segment profit (cumulative nine months of FY2026, ending June 2026) | ¥865 million | ¥1,061 million (cumulative nine months of FY2025, ending June 2025) | ↓ |
| Sales (full year FY2025, ended June 2025) | ¥6,197 million | – | ↑ |
| Segment profit (full year FY2025, ended June 2025) | ¥1,320 million | – | ↑ |
| Orders received (full year FY2025, ended June 2025) | ¥7,188 million | – | ↑ |
| Order backlog (end of FY2025, ended June 2025) | ¥3,021 million | – | ↑ |
Business Details
A contract development-type business providing one-stop services from design to development and operation/maintenance of business and core systems. The company has continued to win large-scale projects backed by demand for core system renewal addressing the "2025 Digital Cliff" issue, DX promotion, and generative AI utilization projects. Sales reached a new record high for the cumulative nine months of FY2026 (ending June 2026). This is the core segment, accounting for approximately 94% of group sales, and is recognized for its advanced implementation capabilities in the financial and government sectors.
Recent Overview
Sales reached a new record high, but segment profit declined 18.4% year-on-year due to increased costs
ICT Solutions business sales for the cumulative nine months of FY2026 (ending June 2026) reached a new record high of ¥4,872 million (up 5.8% year-on-year). On the other hand, segment profit declined sharply to ¥865 million (down 18.4% year-on-year). Profit was pressured by revisions to engineer salary levels, systematic education investment, and increased costs for generative AI research and development and technology verification. Concrete achievements are accumulating in the financial and government sectors, such as the "Loan Business Standardization DX Platform" for the Resona Group and drone demonstration experiments with Fukui Prefecture.
Key Products
Growth Drivers
- Demand related to the "2025 Digital Cliff" issue: continuous need for renewal of aging core systems arising across multiple industries
- Expansion of generative AI and DX investment: securing multiple large-scale development projects amid active corporate IT investment
- Improved development productivity and enhanced cost competitiveness through introduction of AI agents
- Continued transactions with major clients: deepening relationships with key clients such as Surprise Crew Co., Ltd. (sales of ¥1,532 million) and Mynavi Corporation (¥961 million)
- Buildup of order backlog: order backlog at the end of FY2025 (ended June 2025) remained at a high level of ¥3,021 million (148.8% year-on-year)
- Winning new projects through recognition of advanced field understanding and implementation capabilities in the financial and government sectors
Risks
- Rising personnel and recruitment costs due to intensifying competition for engineer recruitment (salary level revisions pressuring profit)
- Dependence on large-scale projects: risk of sales concentration on specific clients (Surprise Crew Co., Ltd. 22.8%, Mynavi Corporation 14.3%)
- Structural limitations of the contract development-type business model: transition to a proprietary service model remains a challenge
- Project progress management risk: deterioration of profitability due to failure in quality and delivery schedule management of large-scale projects
- Continuing trend of declining profit margin, with segment profit down 18.4% year-on-year for the cumulative nine months of FY2026 (ending June 2026)
- Short-term deterioration in profitability due to increased upfront costs such as generative AI R&D and education investment
Last updated: September 24, 2025