Arent Inc.
5254・Growth Market・Information & Communication
Business
Arent Inc. operates under the mission of "democratizing tacit knowledge," primarily providing DX Consulting & System Development to major companies in the construction and plant engineering industries. Its core business is "Co-creation Product Development," which supports clients end-to-end from consulting through full-scale development and ongoing development, and it has established long-term continuous contracts with major clients such as Takasago Thermal Engineering. In addition, the company sells licenses for construction industry-specific software (the Lightning BIM series, PlantStream®, structural calculation software, etc.) developed in-house or acquired through M&A. The company listed on the TSE Growth Market in March 2023 and is accelerating the expansion of its product lineup through M&A. Backed by approximately ¥75 trillion in domestic construction investment, it is positioned in a growth market benefiting from regulatory tailwinds such as the principlization of BIM and the cap on overtime work regulations.
Business Model
In the core Co-creation Product Development business, the company adopts a quasi-delegation contract model in which projects transition from PoC through main development (approximately 24 months) to a continuous development phase, securing ongoing orders ranging from ¥50 million to several hundred million yen annually. In the products business, the company aims to build accumulation-type revenue based on the number of customers multiplied by the number of users, through license sales of construction industry-specific SaaS acquired via M&A. The operating margin for FY2025 (ended June 2025) remained at a high level of 42.0%, supported by a high gross margin structure centered on labor costs.
Company Strengths
Net sales grew for three consecutive fiscal years, rising from ¥2,022 million in FY2023 (ended June 2023) to ¥2,940 million in FY2024 (ended June 2024) and to ¥4,029 million in FY2025 (ended June 2025), exceeding 30% growth each period. The operating margin remained at an extremely high level, at 42.1% in FY2024 (ended June 2024) and 42.0% in FY2025 (ended June 2025), demonstrating outstanding profitability for a software development company.
Transactions with the major client Takasago Thermal Engineering Co., Ltd. accounted for ¥1,239,233 thousand (30.8% of net sales) in FY2025 (ended June 2025), with projects that have transitioned to the continuous development phase generating stable revenue. The collection period for accounts receivable is also short, at approximately one to two months, indicating a strong cash-generating capability.
The company holds multiple proprietary products that have systematized advanced tacit knowledge in the construction and plant industries, such as PlantStream® (automated piping design at a rate of 1,000 pipes per minute) and Lightning BIM automated reinforcement layout. In an area benefiting from regulatory tailwinds such as the principle of BIM/CIM application and the cap on overtime work, the company has accumulated niche technologies that are difficult for competitors to enter.
ENVALITH's Perspective
Performance Trend
Cumulative net sales for the first three quarters of FY2026 (ending March 2026) came to ¥3,858 million (up 22.6% year on year), continuing to grow. However, the growth rate slowed from 44.0% in the same period of the previous year. Operating profit plunged to ¥475 million (down 69.3% year on year), mainly due to SG&A expenses nearly tripling (from ¥588 million to ¥1,695 million) and a sharp increase in goodwill amortization (from ¥16 million to ¥176 million). On the other hand, net income surged to ¥1,237 million (up 158.2% year on year) due to the recognition of deferred tax assets (a temporary tax effect) associated with the absorption-type merger of PlantStream®. Compared with the net sales trend over the past three fiscal years (¥2,022 million in FY2023 → ¥2,940 million in FY2024 → ¥4,029 million in FY2025), the company continues to expand in scale through its accelerated M&A strategy, but is currently in a phase of temporary profitability deterioration. As for the external environment, demand for DX in the construction industry continues to rise, and orders for the DX business have remained solid.
Growth Strategy
Three-pronged strategy combining steady expansion of the DX business, M&A-driven build-out of the product portfolio, and AI implementation
Development orders from major construction companies have been increasing steadily, and DX business revenue was solid at ¥2,756 million (up 7.6% year on year). While executing upfront investments such as organizational structure development in preparation for business growth, the company has maintained a high segment profit margin of 36.3%.
During the cumulative nine-month period, four companies—Stag, Kensetsu Dot Web, Asakura Soft, and Let's—were made subsidiaries through share exchanges. Product business revenue expanded rapidly to ¥1,254 million (versus ¥107 million in the same period of the previous year), and goodwill increased by ¥1,991 million. The purchase price allocation is provisional, and attention should be paid to the impact after final determination.
Released "Lightning BIM AI Agent" (which reduces the operational burden of design work) and "PROCOLLA," an AI-implemented smart process management software co-developed with Obayashi Corporation. The company aims to differentiate itself and enhance added value by implementing AI technology in its Proprietary Products.
From the cumulative nine-month consolidated period, operating profit before goodwill amortization was added as a key management indicator. The cumulative nine-month result was ¥651 million (down 58.3% year on year), with a full-year forecast of ¥1,353 million. This clarifies the company's disclosure stance of showing investors its underlying earnings power excluding the goodwill amortization burden associated with M&A expansion.
Last updated: July 17, 2026