Altech Corporation

Business Details

This segment handles staffing of design engineers in mechanical, electrical, and information processing design, technical project contracting, clerical staffing and contracting, staffing in agriculture, and home care services. Major clients are leading manufacturers in automobiles, semiconductors, and electrical equipment. By linking enhanced technical training in advanced technology fields and the aerospace field with sales measures such as team staffing and shift to contracting, the company has maintained high utilization rates and achieved rising contract unit prices. In Q1 of FY2026 (ending December 2026), both total number of staff on assignment and contract unit prices rose. This fiscal year, the company newly established a Contracting Business Promotion Office to further strengthen contracting operations.

Recent Overview

Sales rose 6.7% year on year to ¥12,203 million, but operating profit declined 3.7% due to the rebound effect from completion of a large-scale project in the prior-year Q1.

In the Outsourcing Services Business for Q1 of FY2026 (ending December 2026) (January to March 2026), both total number of staff on assignment and contract unit prices rose, and sales reached ¥12,203 million (up 6.7% year on year). On the other hand, operating profit came to ¥1,229 million (down 3.7% year on year) due to the rebound effect from the acceptance and completion of large-scale domestic and overseas projects in the prior-year Q1. This fiscal year, the company newly established a Contracting Business Promotion Office to strengthen contracting operations. Through recruitment initiatives such as internships, the company has secured excellent personnel even amid intensifying competition for talent, and has maintained a high utilization rate.

Key Products

Growth Drivers

• Steady demand for engineer staffing due to continued upfront R&D investment by major manufacturers (next-generation automobiles, semiconductors, aerospace, etc.)
• Stable growth in employee headcount through diversified recruitment measures including referral hiring, alumni hiring, mid-career hiring, and internships
• Maintenance of high utilization rates and rising contract unit prices through linkage of enhanced technical training in advanced technology fields (space, AI, environment) with sales measures such as team staffing and shift to contracting
• Full-scale strengthening of the aerospace field and contracting operations through the Space Business Promotion Office (established last fiscal year) and the Contracting Business Promotion Office (established this fiscal year)
• Improved talent retention and recruitment competitiveness through revision of the compensation system in line with work-style reform and support measures for a better working environment

Risks

• Rising recruitment costs and difficulty securing top talent due to intensifying competition for human resources
• Fluctuations in staffing demand due to the impact of US tariff policy under the Trump administration and geopolitical risk on the automobile industry, a major client
• Pressure on profit margins from increased selling, general and administrative expenses accompanying growth in employee headcount
• Risk of fluctuation in contracting revenue due to the rebound effect from completion of large-scale projects in the prior period
• Risk of clients curbing investment due to instability in global conditions such as US trade policy and sluggish domestic demand in China