SUS Co.,Ltd.

Business Details

An engineer-specialized staffing and contracting business operating from multiple domestic locations. Its main customers are major manufacturers and system integrators across four fields: IT, mechanical, electrical/electronics, and chemical/bio. The company employs engineers as full-time staff and adopts a "working adult school" model that develops both technical skills and human skills. In addition to dispatch contracts, the business also handles contracting arrangements such as IT Contracting Service and Manufacturing Contracting Service, strengthening its system for receiving orders on a project/team basis. This is the Group's core segment, accounting for approximately 93% of consolidated net sales.

Recent Overview

Dispatch unit prices rose 4.4% and IT contracting expanded, driving H1 net sales up 12.1% and profit up 17.4%.

In the first half of FY2026 (ending September 2026) (October 2025 to March 2026), Solutions Business net sales were ¥7,471 million (up 12.1% year on year), and segment profit was ¥855 million (up 17.4% year on year). In dispatch operations, an emphasis on training paid off, with dispatch unit prices rising 4.4% year on year. IT contracting saw solid order growth centered on the Eastern Japan area, with project profit margins also rising. The company began initiatives leveraging generative AI tools to improve engineers' AI skills and partnering with business partners to promote participation in upstream projects. Increases in SG&A expenses, including preparation costs for opening the Fukuoka office, were absorbed by gross profit growth.

Key Products

Growth Drivers

• Continued robust personnel demand due to chronic engineer shortages at IT-related companies and domestic manufacturers
• Higher value-added services and rising dispatch unit prices through continuous engineer training (+4.4% year on year in H1 of FY2026 ending September 2026)
• Steady increase in the number of engineers on staff through recruitment of new graduates and experienced hires proceeding as planned
• Expanded order intake in IT contracting centered on the Eastern Japan area and strengthened order-receiving capacity through increased engineer headcount
• Initiatives to improve engineers' AI skills through the introduction of generative AI tools and business partner collaboration measures to promote participation in upstream projects
• Expansion of regional presence and new customer development through the opening of the Fukuoka office

Risks

• Pressure to increase SG&A expenses such as recruitment advertising costs and personnel expenses due to intensifying competition for engineer recruitment
• Risk of declining utilization rates during training periods (balancing training and utilization appropriately affects gross profit margin)
• Risk of demand decline due to reduced capital expenditure/DX investment by major customers in IT-related companies and manufacturing
• Risk of order restraint by manufacturing customers due to macroeconomic downturns, including the impact of US trade policy
• Risk of decreased utilization headcount due to engineer turnover or lower retention rates
• Impact on profitability from increased costs related to business partner utilization measures and outsourcing expenses