Oki Electric Industry Company, Limited
6703・Prime Market・Electric Appliances
Business
Oki Electric Industry (OKI), founded in 1881, is an information and communications equipment company. It operates four business segments: Public Solutions (systems for roads, defense, firefighting, and telecom carriers), Enterprise Solutions (ATM / Cash Processing Machines and financial systems), Component Products (IoT edge devices, PBX, and Cloud Services), and EMS (Printed Wiring Boards and Design & Manufacturing Contract Services). Its major customers span a wide range, including government agencies, the Ministry of Defense, telecom carriers, financial institutions, and general corporations, giving the company a business foundation that supports the maintenance and operation of social infrastructure. From FY2026 (ending March 2026), the company will reorganize into a three-segment structure (Public Solutions / Financial Solutions / Component & Manufacturing) and aim to accelerate growth under the new Medium-Term Management Plan 2031.
Business Model
In addition to initial sales of products and systems, OKI has a structure that accumulates recurring, subscription-type revenue from ATM Monitoring & Operation Services, construction and maintenance services, and the like. In Public Solutions, the company pursues order-based businesses for defense and social infrastructure, while in Enterprise Solutions it offers one-stop services for financial institutions leveraging its nationwide maintenance network. Management Plan 2031 explicitly states a shift in the revenue structure "from an install-and-sell model to a long-term contract model encompassing operation, maintenance, and renewal."
Company Strengths
The Public Solutions business achieved net sales of ¥139,711 million, operating income of ¥18,141 million, and an operating margin of 13.0% in FY2026 (ending March 2026). The Special-Purpose Systems business, centered on underwater acoustic technology, has maintained solid order intake against a backdrop of expanding defense demand, with years of accumulated technology and track record forming a barrier to entry.
The Enterprise Solutions business secured net sales of ¥150,573 million and an operating margin of 6.8% in FY2026 (ending March 2026). Despite the impact of the drop-off of large-scale projects, the company maintained a 7% operating margin through production efficiency improvements. Its nationwide maintenance and operation service network, along with recurring-revenue services such as ATM Monitoring & Operation Services, underpin the stability of its earnings.
OKI has developed a heterogeneous material integration technology for optical semiconductors on 300mm silicon wafers using CFB (Crystal Film Bonding) technology. Its EMS subsidiary, OKI Circuit Technology, has successfully developed 124-layer PCB technology for next-generation AI semiconductor inspection equipment. Through initiatives such as a comprehensive joint research agreement with Fraunhofer HHI of Germany, the company is building a proprietary technology base in the fields of optoelectronic integration and GaN power semiconductors.
ENVALITH's Perspective
Performance Trend
Revenue expanded from ¥352,064 million in FY2022 (ending March 2022) to ¥421,854 million in FY2024 (ending March 2024), but then retreated to ¥421,635 million in FY2026 (ending March 2026) (down 6.8% year on year). The main cause was the drop-off of large-scale projects in Enterprise Solutions. Operating profit was ¥18,844 million (up 1.2% year on year), remaining roughly flat, as increased profit in Public Solutions offset the decline. Profit attributable to owners of parent surged 72.4% year on year to ¥21,510 million, but this was boosted by total extraordinary gains of ¥9,465 million, comprising a gain on business transfer of ¥5,122 million and a gain on sale of investment securities of ¥4,343 million; on an ordinary-profit basis, underlying profit was ¥20,774 million (up 23.6% year on year). The equity ratio improved to 40.5% (from 35.4% in the previous period), strengthening the financial position. For FY2027 (ending March 2027), the company forecasts revenue of ¥440,000 million and operating profit of ¥22,000 million, representing both revenue and profit growth.
Growth Strategy
As the first year of the new Medium-term Management Plan 2031, the company is shifting its management stance from defense to offense, accelerating growth through a reorganization into three segments
Following the organizational change in April 2026, the company will be reorganized from FY2027 (ending March 2027) into three segments: Public Solutions, Financial Solutions, and Component & Manufacturing. Under the banner of shifting management from defense to offense, the company plans an operating margin of 5% or higher in FY2027 (ending March 2027).
Growth in the Social Infrastructure Solutions business and expanding defense demand (Special-Purpose Systems centered on underwater acoustics) are driving increases in both revenue and profit. For FY2027 (ending March 2027), the company plans net sales of ¥147,000 million and operating income of ¥18,000 million (down 11.3% year on year in operating income).
OKI DATA MANUFACTURING (THAILAND) CO., LTD. was transferred to Etoria Corporation and excluded from the scope of consolidation. In addition to recording a gain on business transfer of ¥5,122 million, the company is advancing fixed-cost reductions and profit stabilization in the Component Products business.
Recovery in the components business led the EMS business to turn profitable, moving from an operating loss of ¥803 million in the previous period to operating income of ¥986 million. In the new "Component & Manufacturing" segment for FY2027 (ending March 2027), the company plans net sales of ¥139,000 million and operating income of ¥5,000 million (up 163.2% year on year).
In the "Others" segment, the company continues preparations for mass production of photonics and power semiconductors and collaboration with startups at its Silicon Valley base. The operating loss for FY2026 (ending March 2026) widened year on year to ¥1,582 million, positioned as a growth investment. The long-term goal is to create new businesses toward the 150th anniversary of the company's founding in 2031.
Last updated: July 19, 2026