FLIGHT SOLUTIONS Inc.

Business Details

Provides system consulting, system development and maintenance, and system development support utilizing cloud services such as Google Workspace to business companies, mainly in the logistics and financial sectors. It is the only segment among the three to record an operating profit, functioning as the revenue base offsetting losses in the Payment Solutions/EC Solutions Business, but the current period saw a decrease in both revenue and profit due to the rebound from a large-scale project in the prior period.

Recent Overview

Revenue decreased 19.7% and operating profit decreased 39.8% due to the rebound from a large-scale system development project in the prior period

In FY2026 (ending March 2026), due to the rebound from a large-scale system development project recorded as revenue in the prior fiscal year, revenue was ¥932 million (down 19.7% year on year) and operating profit was ¥87 million (down 39.8% year on year), representing a significant decrease in both revenue and profit. The breakdown of revenue was ¥264 million for goods transferred at a point in time and ¥667 million for goods transferred over a period of time. The segment continues to serve as the sole profitable segment among the three, offsetting the company-wide loss.

Key Products

Growth Drivers

• Ongoing demand for development and maintenance of core systems at logistics and financial business companies
• Additional orders from existing customers amid expanding demand for DX promotion support
• Expansion of system development support utilizing cloud services such as Google Workspace
• In the next fiscal year (FY2027, ending March 2027), the SI Solutions Business plans to focus on system development for existing customers, DX promotion support, and cloud service utilization support

Risks

• Risk of project interruptions due to customer circumstances and rebound from large-scale projects (this actually occurred in the current period and was the main cause of the 19.7% year-on-year decrease in revenue)
• A revenue structure with high dependence on specific large-scale projects, making the risk of revenue erosion after project completion likely to materialize
• Material doubt about the company-wide going concern assumption (operating loss of ¥276 million recorded) may indirectly affect business operations and talent acquisition
• Operating margin declined from 12.4% in the prior period to 9.3% in the current period, indicating risk of deteriorating profitability due to increased fixed cost burden and rising outsourcing costs