CGS HOLDINGS INC.
6633・Standard Market・Electric Appliances
Business
CGS Holdings Co., Ltd. is a TSE Standard-listed company that transitioned to a pure holding company structure in April 2025. Under its umbrella are C&G Systems Co., Ltd., which develops and sells CAD/CAM systems domestically; NDES Co., Ltd. (formerly NTT DATA Engineering Systems, a spin-off company made a subsidiary in October 2025); overseas bases in North America, Canada, and Thailand; and Tritech International, LLC, a North American fabless mold manufacturer. Its main customers are in the automotive mold and parts manufacturing industry, and it offers everything from CAD/CAM System (Software) development and sales to Maintenance Services (Renewal & First-Year Maintenance), production management systems, and smart factory solutions. The group's vision is "Global Niche Top," and it advocates evolving into a "Manufacturing DX Integrator." Consolidated net sales for FY2025 (ended March 2025) were ¥4,982 million.
Business Model
The core of revenue rests on two pillars: package sales of the CAD/CAM System and maintenance contracts/technical services. In FY2025 (ended March 2025), maintenance contract and technical service revenue reached ¥2,757 million (up 20.1% year on year), accounting for roughly 55% of total revenue, forming a stable, recurring revenue base underpinned by a high renewal rate. This is supplemented by product sales (¥1,248 million) and contract development (¥129 million). The Mold Manufacturing Business manufactures and undertakes contract production of molds for automotive parts in North America under a fabless model, recording revenue of ¥849 million. Following the consolidation of NDES as a subsidiary, a revenue base in the cloud/SaaS domain has also been added, with revenue diversification continuing to progress.
Company Strengths
The annual securities report states that the organizational restructuring in April 2025 made the company group the top-share player in the CAD/CAM industry. The flagship products EXCESS-HYBRID II and CAM-TOOL continue to receive regular version upgrades, and in FY2025 (ended March 2025) orders received for CAD/CAM products increased 24.3% year on year to ¥1,340 million, with order backlog up 205.4% year on year, indicating strong demand.
Sales of maintenance contracts and technical services in FY2025 (ended March 2025) were ¥2,757 million (up 20.1% year on year), with orders received of ¥3,075 million (up 33.9% year on year) and order backlog of ¥1,238 million (up 34.6% year on year), both continuing to build up. A regionally focused support system both in Japan and overseas underpins a high renewal rate, ensuring stability of earnings against economic fluctuations.
In October 2025, the company acquired a 51% equity stake in NDES Corporation, which was spun off from NTT DATA Engineering Systems Corporation's manufacturing solutions and cloud business, making it a subsidiary. Despite only three months of revenue contribution, this contributed to increased revenue and profit in the CAD/CAM Systems Business. For the next fiscal year (FY2026, ending March 2026), with a full year of contribution, sales of ¥6,551 million (up 31.5% year on year) are expected.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years bottomed out at ¥3,826 million in FY2023 and has since recovered, expanding to ¥4,982 million in FY2025, aided by the consolidation of NDES as a subsidiary. Cumulative revenue for 1Q FY2026 accelerated to ¥1,457 million (up 27.3% year on year). Operating profit improved substantially to ¥107 million (up 74.4% year on year), but net income attributable to owners of the parent declined to ¥40 million (down 24.6% year on year). The main causes were a sharp slump in the Mold Manufacturing Business, whose revenue plunged to ¥45 million (down 81.2% year on year) with a segment loss of ¥27 million due to a client's discontinuation of EV development, and a sharp increase in income taxes to ¥68 million (versus ¥12 million in the same period of the previous year). As an external factor, the rise in petrochemical-derived raw material prices stemming from the situation in the Middle East is emerging as a risk of capital expenditure restraint from the second quarter onward. The full-year forecast remains unchanged.
Growth Strategy
Building on its top share position in the CAD/CAM industry, the company aims to evolve into a manufacturing DX integrator, targeting sales of ¥10,000 million by 2030
Full-year consolidation contribution from NDES, which became a subsidiary in October 2025, is driving rapid expansion in contract development, OEM development, and license revenue. Cumulative 1Q FY2026 results confirmed progress in line with expectations, with CAD/CAM Systems Business sales of ¥1,412 million and segment profit of ¥135 million. This directly strengthens the company's function as a manufacturing DX integrator.
In February 2026, the company released a CAM system for parts machining equipped with multi-tasking lathe functionality, strengthening its ability to address a wide range of machining needs. Demand for production and process management systems for mold and parts manufacturing has also remained steady, and the company continues to strengthen sales of products that support productivity improvement through manufacturing DX.
The company is strengthening product sales in Asian markets such as Thailand, Vietnam, and South Korea, where a recovery trend in capital investment appetite is being observed. Maintenance service sales have remained steady both domestically and overseas, and the company aims to expand its overseas customer base while maintaining a high maintenance renewal rate.
The North American mold manufacturing subsidiary recorded a significant decline in revenue and a loss in 1Q FY2026 due to the cancellation of a client's EV development project, U.S. policy trends, and sluggish orders. The company continues new customer development activities aimed at recovering orders from the second half of the fiscal year onward, but the outlook remains highly uncertain.
Last updated: July 17, 2026