Arent Inc.

Business Details

A segment that provides end-to-end DX support—from consulting through full-scale development and ongoing development—to major companies in the construction industry, among others. It primarily provides software development under quasi-delegation contracts, collaborating with clients over the long term from PoC through MVP development and, after commercialization, ongoing development. Taisei Setsubi Kogyo Co., Ltd. is a major client, and the segment has established a stable revenue model. In the cumulative nine months of FY2026 (ending March 2026), sales were ¥2,756 million and the segment profit margin was maintained at a high level of 36.3%. Note that, from the cumulative nine-month consolidated period, the segment name was changed from "Co-creation Product Development" to "DX Business."

Recent Overview

Development orders for the construction industry continued to increase steadily; the segment maintained a high profit margin while continuing upfront investment

In the cumulative nine months of FY2026 (ending March 2026), DX Business sales were ¥2,756 million (up 7.6% year on year), and segment profit was ¥1,001 million (down 13.7% year on year). The profit margin remained at a high level of 36.3%, although it did not reach the level of the prior-year period, which included a one-time factor. The segment continued to perform steadily while carrying out upfront investment such as organizational structure development in preparation for business growth. In addition, the Company advanced new product rollout, including the release of "PROCOLLA," an AI-equipped, on-site support smart process management software co-developed with Obayashi Corporation. Note that, from the third quarter, the segment name was changed from "Co-creation Product Development" to "DX Business."

Key Products

Growth Drivers

• Growing demand for DX driven by the overtime work cap regulations in the construction industry (applied from April 2024)
• Industry-wide acceleration of digitalization driven by the Ministry of Land, Infrastructure, Transport and Tourism's move to make BIM use standard practice in public works projects (from FY2023)
• A stable revenue base built on long-term, ongoing development contracts with major clients such as Taisei Setsubi Kogyo Co., Ltd.
• Increasing orders for new, large-scale contracted development projects from major construction companies
• Competitive advantage from accumulated 3D-centered system development technology capabilities and domain knowledge specialized in the construction industry
• Rollout of new products (such as PROCOLLA) through joint development with companies such as Obayashi Corporation

Risks

• High dependence on sales from a major client (Taisei Setsubi Kogyo Co., Ltd.), creating a risk that changes in that client's policies could affect business performance (accounting for 30.8% of sales in FY2025 (ended June 2025))
• Risk that recruiting and securing excellent IT talent such as engineers and consultants could constrain business expansion
• Reduced comparability going forward due to the segment name change to "DX Business" and associated changes in business strategy and segment composition
• Risk of fluctuations in orders due to changes in the economic climate of the construction industry and in major clients' capital expenditure plans
• Risk of profitability pressure from continued upfront investment such as organizational structure development in preparation for business growth (segment profit for the cumulative nine months of FY2026 (ending March 2026) decreased 13.7% year on year)