Oki Electric Industry Company, Limited
6703・Prime Market・Electric Appliances
Public Solutions
OKI's growth-driving segment providing social infrastructure and defense-related solutions
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (external customers) | ¥139,711 million | ¥130,506 million | ↑ |
| Segment profit | ¥18,141 million | ¥14,093 million | ↑ |
| Operating margin (vs. external customer sales) | 13.0% | 10.8% | ↑ |
| Net sales YoY | +7.1% | — | ↑ |
| Segment profit YoY | +28.7% | — | ↑ |
Business Details
Handles road, aviation, fire/disaster prevention-related systems, systems for government offices, defense-related systems (Special-Purpose Systems), and communication equipment for telecom carriers. Main customers are government offices, the Ministry of Defense, and telecom carriers. Composed of two pillars—the Social Infrastructure Solutions business and the Special-Purpose Systems business—it supports the maintenance and construction of mission-critical social infrastructure. Positioned as a "growth business" under the Mid-term Plan 2025, it is driving the improvement of profitability across the OKI Group as a whole.
Recent Overview
Increased revenue and profit driven by growth in the Social Infrastructure Solutions business, with a significant improvement in margin
In FY2026 (ending March 2026), net sales to external customers were ¥139,711 million (+7.1% YoY), and segment profit was ¥18,141 million (+28.7% YoY), achieving increased revenue and profit. Growth in the Social Infrastructure Solutions business was the main driver. Although the Special-Purpose Systems business fell below the previous year's level, it remained solid, particularly in underwater acoustics, amid expanding defense demand. For FY2027 (ending March 2027), net sales are forecast at ¥147,000 million (+0.4%) and operating profit at ¥18,000 million (-11.3%), with a decline in profit expected as a reversal from the current year's strong results.
Key Products
Growth Drivers
- Increased orders in the Special-Purpose Systems business driven by expanding defense capability enhancement demand (solid performance centered on underwater acoustics)
- Growth in the Social Infrastructure Solutions business through strengthened response to fire/disaster prevention and road markets
- Expanded deployment of products for telecom carriers into the private network market
- Concentrated allocation of management resources as a growth business under the New Management Plan 2031
Risks
- Risk of policy changes affecting defense budgets and government office projects
- Risk of sales volatility due to concentration of large-scale project orders
- Risk of increased fixed costs associated with technology development and production capacity expansion
- Foreign exchange risk associated with strengthened overseas expansion
- Anticipated reversal decline in segment profit of -11.3% YoY in the FY2027 (ending March 2027) forecast
Last updated: June 22, 2026