Ecomott Inc.

Business Details

Ecomott Inc. operates under the mission of "Creating the common sense of the future," developing its business across two solution categories: (1) "IoT Business Innovation," which supports cross-industry DX (in collaboration with KDDI, Sekisui Jushi, and others), and (2) "Construction Solutions," specialized in construction site DX (through GRIFFY Inc.). In March 2026, the company made Fujiyama Suisan Kako Co., Ltd. a subsidiary and newly established an "Other Business" segment, transitioning from its previous single-segment structure to a multi-segment structure.

Recent Overview

Net sales declined 21.9% and operating loss widened to ¥119 million, a significant deterioration, while business restructuring proceeds through multiple M&A transactions

For the cumulative third quarter of FY2026 (ending August 2026) (September 2025 to May 2026), consolidated net sales were ¥1,586 million (down 21.9% year on year), with an operating loss of ¥119 million (compared to operating profit of ¥11 million in the same period of the prior year). This was mainly attributable to the impact of deconsolidating IoT Powered. IoT Business Innovation was down 1.0% year on year due to delayed growth in orders for mobility services, while Construction Solutions was up 1.3% year on year on the strength of BAIAS and GenVital LTE. In March 2026, the company acquired Fujiyama Suisan Kako as a subsidiary for an acquisition cost of ¥2 million, recording a gain on negative goodwill of ¥87 million. As a subsequent event, subsidiary GRIFFY Inc. completed the acquisition of the entire business of Life Business Weather Co., Ltd. for ¥32 million on July 1, 2026. The full-year earnings forecast (net sales of ¥2,428 million, operating profit of ¥56 million) remains unchanged.

Key Products

Growth Drivers

• High growth in the domestic IoT market (actual results of ¥6,918.9 billion in 2023, CAGR of 8.0%, projected to reach ¥10,165.3 billion by 2028)
• Stable order expansion in IoT Business Innovation through collaboration with major companies such as KDDI Corporation and Sekisui Jushi Corporation
• Expansion of market share in Construction Solutions against the backdrop of increasing demand for DX promotion in the construction industry and penalty-backed mandatory heat stroke countermeasures
• Strengthening of joint development structure with general contractors through capital and business alliance with Toda Corporation and Muramoto Corporation (sale of 11.1% of GRIFFY shares)
• Establishment of a physical AI demonstration base and technology deployment into fisheries, food, and primary industries through the subsidiarization of Fujiyama Suisan Kako Co., Ltd.
• Strengthening of vertical integration in construction DX combining high-precision weather forecasting with IoT and AI through GRIFFY's acquisition of the business of Life Business Weather Co., Ltd. (completed July 1, 2026)

Risks

• Structural contraction of sales scale due to the deconsolidation of IoT Powered (approximately ¥690 million in sales) (full-year forecast for FY2026 (ending August 2026) is ¥2,428 million, down 19.2% year on year)
• Seasonality and economic sensitivity risk, as Construction Solutions sales are heavily influenced by construction investment trends and public works budgets
• Risk of delayed growth in orders for mobility services within IoT Business Innovation (growth fell short of expectations in the cumulative third quarter)
• Risk that Fujiyama Suisan Kako (Other Business), which recorded a segment loss of ¥25 million in the cumulative third quarter, will take time to become profitable as a physical AI demonstration site
• Interest-bearing debt balance (short-term borrowings of ¥570 million plus long-term borrowings of ¥437 million, totaling ¥1,007 million) and financial leverage remaining at elevated levels
• Uncertainty regarding the finalized amount of goodwill and integration costs related to GRIFFY's acquisition of the Life Business Weather business (acquisition cost of ¥32 million)