LTS, Inc.
6560・Prime Market・Services
Professional Services
LTS's single business segment responsible for DX and consulting support
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Q1 cumulative) | ¥4,391 million | ¥4,421 million | ↓ |
| Operating profit (Q1 cumulative) | ¥496 million | ¥423 million | ↑ |
| Ordinary profit (Q1 cumulative) | ¥528 million | ¥455 million | ↑ |
| Quarterly net profit attributable to owners of parent (Q1 cumulative) | ¥419 million | ¥332 million | ↑ |
| Gross profit (Q1 cumulative) | ¥1,406 million | ¥1,335 million | ↑ |
| Operating margin (Q1 cumulative) | 11.3% | 9.6% | ↑ |
| Unamortized goodwill balance | ¥475 million | ¥488 million | ↓ |
| Full-year revenue forecast | ¥18,300 million | ¥17,103 million | ↑ |
| Full-year operating profit forecast | ¥1,600 million | ¥1,186 million | ↑ |
Business Details
Starting from Q1 of FY2026, the previous two-segment structure of "Professional Services" and "Platform Business" was reorganized into a single segment, "Transformation Services Business." Across four service domains—Strategy Consulting, DX Consulting, DX Engineering, and Platform & Agent—the company provides one-stop support for the transformation of management, business, and organizational operations, primarily targeting major domestic companies.
Recent Overview
Slight revenue decline but notable margin improvement; segment reorganization and cost structure review implemented
In Q1 FY2026, revenue was ¥4,391 million (down 0.7% year on year), a slight decrease, but due to improved cost efficiency (gross margin improved to around the 32.0% level from 32.0%), operating profit rose significantly to ¥496 million (up 17.3% year on year). DX Consulting led growth at ¥2,136 million, up 10.1% year on year, while DX Engineering and Platform & Agent saw revenue declines. The company consolidated its reporting segments into a single segment and also changed its presentation method by reclassifying ¥222 million of certain personnel expenses from selling, general and administrative expenses to cost of sales. The Singapore subsidiary LTS Strategy Pte. Ltd. was newly added to the scope of consolidation.
Key Products
Growth Drivers
- Steady expansion of orders in the DX Consulting domain, driven by robust demand for DX and AX
- Increased customer unit prices through a focus on upstream support for CXO-level clients (Strategy Consulting)
- Productivity improvements through talent portfolio adjustments in anticipation of a shift to business operations premised on generative AI
- Expansion of service delivery capacity through continued active recruitment and talent development activities
- Full-scale overseas expansion through the consolidation of LTS Strategy Pte. Ltd.
Risks
- Constraints on service delivery capacity due to IT talent shortages (increased recruitment and training costs)
- Risk of project management issues arising in contract-based system development projects
- Increased personnel expenses due to hiring and salary increases for consultants and engineers, as well as rising outsourcing costs
- Declining revenue trend in the Platform & Agent and DX Engineering domains
- Risk of reduced IT investment by client companies due to geopolitical risks or fluctuations in financial and capital markets
Last updated: March 23, 2026