CGS HOLDINGS INC.
6633・Standard Market・Electric Appliances
CAD/CAM Systems Business
Group's core business centered on CAD/CAM solutions for the manufacturing industry
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (cumulative Q1 FY2026) | ¥1,412 million | ¥904 million (cumulative Q1 FY2025) | ↑ |
| Segment profit (cumulative Q1 FY2026) | ¥135 million | ¥53 million (cumulative Q1 FY2025) | ↑ |
| Segment profit margin (cumulative Q1 FY2026) | 9.6% | 5.8% (cumulative Q1 FY2025) | ↑ |
| Segment revenue (full year, prior year actual) | ¥4,133 million | — | — |
| Segment profit (full year, prior year actual) | ¥244 million | — | — |
Business Details
Develops, manufactures, and sells CAD/CAM systems for the mold and parts manufacturing industry as its core operations, while also offering maintenance services, hardware sales, contract development, and Subscription Contracts sales. The business is carried out by C&G Systems Co., Ltd., NDES Co., Ltd., CGS NORTH AMERICA INC. (CANADA), and CGS ASIA CO., LTD. Its main customers are mold and parts manufacturers serving the automotive industry, and the company has built a regionally-focused support structure both domestically and overseas. NDES became a group company in October 2025, strengthening the provision of total solutions as a manufacturing DX integrator.
Recent Overview
CAD/CAM business saw significant increases in revenue and profit due to NDES consolidation effect; Q1 revenue up 56.2% year-on-year
Cumulative Q1 FY2026 revenue for the CAD/CAM Systems Business was ¥1,412 million (up 56.2% year-on-year), and segment profit was ¥135 million (up 155.9% year-on-year). This was mainly due to the additional revenue contribution from NDES, which had not yet become a consolidated subsidiary in the same period of the prior year, and progress was in line with expectations. Renewal maintenance revenue grew strongly to ¥674 million, up 46.6% year-on-year, and contract development revenue grew to ¥91 million, up 252.7% year-on-year. A recovery trend in capital investment appetite was also observed in overseas markets such as Thailand, Vietnam, and South Korea. From Q2 onward, concerns are expected to continue regarding capital investment restraint due to rising prices and reduced supply of petrochemical-derived raw materials stemming from the situation in the Middle East.
Key Products
Growth Drivers
- Revenue increase effect from full-year consolidation of NDES, which became a subsidiary in October 2025 (Q1 FY2026 reflects a full three months of contribution compared to the same period of the prior year)
- Winning large-scale orders for the flagship CAD/CAM system amid demand for improved quality and automation/labor-saving in mold and parts manufacturing processes
- Development of new markets for the CAD/CAM system for the parts machining market (equipped with multi-tasking lathe functionality in February 2026) and for production/process management systems for the mold and parts manufacturing industry
- Maintaining a high maintenance renewal rate and steady expansion of renewal maintenance revenue through regionally-focused support structures both domestically and overseas
- High growth in contract development and Subscription Contracts (Q1 FY2026 contract development revenue of ¥91 million, up 252.7% year-on-year)
- Recovery trend in capital investment appetite in ASEAN and East Asian markets such as Thailand, Vietnam, and South Korea
Risks
- Continued cautious capital investment stance among automotive-related manufacturers (concerns over the situation in the Middle East, rising petrochemical-derived raw material prices, US tariff policy, and exchange rate trends)
- Trend of restrained capital investment among small and medium-sized enterprises in domestic demand
- Uncertainty over demand trends from Q2 onward due to rising prices and reduced supply of petrochemical-derived raw materials stemming from the situation in the Middle East
- Risk of obsolescence of flagship products and risk of delayed response to innovative technologies such as AI and automation
- Risk of delayed synergy creation with NDES (since the group consolidation occurred in October 2025, full-scale integration effects are not expected until 2026 onward)
- Geopolitical risk and foreign exchange risk in overseas markets (ASEAN and North America)
Last updated: March 24, 2026