ENVALITH
株式会社エル・ティー・エス logo

LTS, Inc.

6560・Prime Market・Services

Official website
株式会社エル・ティー・エス logo
LTS, Inc.6560

Business

LTS, Inc. develops consulting services that support corporate transformation and growth, using "business process management" as its core methodology. In Professional Services (approximately 91% of revenue composition), the company provides one-stop offerings across a broad range of areas including business analysis and design, IT implementation support, strategy formulation, data analytics, and GX support. In the Platform Business, the company operates "Assign Navi," a matching service specialized in the IT industry (14,915 members). Its primary customers span a wide range of companies, including CXO-level executives at major operating companies and IT firms, and since its founding in 2002, the company has continued to grow on the back of expanding DX demand.

Business Model

In Professional Services, the company provides various consulting services on a one-stop basis according to clients' transformation themes, receiving compensation upon completion of service delivery. In the Platform Business, revenue is generated through three pillars via "Assign Navi": membership fees, matching revenue, and event participation fees. Major costs consist of personnel expenses and outsourcing processing costs, making the securing and development of excellent talent a key factor in the profitability structure.

Company Strengths

Revenue expanded from ¥7,375 million in FY2021 to ¥17,101 million in FY2025, growing approximately 2.3x over four years. Against a backdrop of robust DX demand, orders remained solid centered on existing clients, and the company built a workforce of around 1,000 employees while also leveraging M&A, including making Hibiya Computer System a subsidiary in October 2023.

The company has a system in place to provide, on a one-stop basis, a range of services tailored to clients' transformation themes, spanning business analysis and design, IT implementation support, strategy formulation, data analytics, and GX (green transformation) support. It has also strengthened collaboration with external partners, such as by launching full-scale SAP S/4HANA Cloud implementation consulting as an SAP Service Partner.

"Assign Navi," launched in 2014, had 14,915 members (corporate and individual combined) as of the end of December 2025, an increase of 692 members from the end of the previous fiscal year. It functions as a professional crowdsourcing platform that directly connects IT talent with IT projects, and is also utilized as an external resource procurement platform for the Professional Services business.

ENVALITH's Perspective

In Q1 of FY2026 (ending December 2026), net sales were ¥4,391 million (down 0.7% year-on-year), a slight decrease, but operating profit rose to ¥496 million (up 17.3% year-on-year) and net income attributable to owners of the parent increased to ¥419 million (up 26.0% year-on-year), showing substantial improvement on the profit side. The main factors were a reduction in cost of sales (down 3.3% year-on-year) and SG&A expenses held flat even after the change in presentation method. As an external factor, the continued strong demand for DX and AX in the market environment has provided a tailwind.

Against the full-year forecast (net sales of ¥18,300 million, operating profit of ¥1,600 million), the Q1 progress rate was 24.0% for net sales and 31.0% for operating profit, with profit progressing faster. However, while DX Consulting (¥2,136 million, up 10.1% year-on-year) drove growth, the three domains of Strategy Consulting (¥287 million, down 5.0% year-on-year), DX Engineering (¥1,219 million, down 7.3% year-on-year), and Platform & Agent (¥747 million, down 13.4% year-on-year) saw year-on-year declines in revenue, warranting close attention to the sustainability of sales growth.

Against the target of over 20% average annual growth in operating profit set out in the 2025-2027 2nd Growth Plan, the 17.3% year-on-year increase in operating profit in Q1 FY2026 is broadly consistent. On the other hand, net sales growth continues to slow, from ¥17,101 million in FY2025 to a full-year forecast of ¥18,300 million (up 7.0%), and recovery in domains other than DX Consulting will be key to achieving the full-year target. The consolidation of the Singapore subsidiary LTS Strategy Pte. Ltd. is drawing attention as a new growth pillar, but its contribution to earnings appears limited at this stage.

Growth Strategy

Under the 2nd Growth Plan (FY2025–FY2027), the company prioritizes a recovery in profitability and aims for an average annual operating profit growth rate of over 20%.

DX Consulting achieved ¥2,136 million in Q1 FY2026 (up 10.1% year on year), the only domain to record revenue growth. The company will focus on support services for CXO-class clients centered on expertise in strategy, data, and AI, aiming to raise per-client revenue and expand continuous order intake.

In anticipation of a shift to business operations premised on generative AI, the company began adjusting its talent portfolio from Q1 FY2026. While continuing active recruitment and talent development, it will pursue both expansion of service delivery capacity and improvement of the cost ratio through productivity gains from AI utilization.

LTS Strategy Pte. Ltd., a Singapore-based subsidiary that was a non-consolidated subsidiary through the previous fiscal year, was consolidated from Q1 FY2026. Reflecting its growing importance, the company will pursue full-scale overseas expansion and promote the deployment of know-how developed through domestic DX support into Asia.

From Q1 FY2026, the company changed its reportable segment to a single segment, "Transformation Services Business," and revamped performance management across four domains: Strategy Consulting, DX Consulting, DX Engineering, and Platform & Agent. This aims to appropriately manage service areas with differing revenue and growth models, and optimize the allocation of management resources.

Last updated: July 17, 2026