ACMOS INC.

Business Details

Engages in SI/software development, Fire & Disaster Prevention Solutions (SYMPROBUS F Series Fire Communication Command System), GIS Solutions, and development, maintenance, and operation of System Engineering Service (SES) for Financial Institutions. Main customers are government agencies, municipalities, manufacturers, and financial institutions. With the consolidation of Systems Service Co., Ltd. as a subsidiary in January 2026, the financial sector was newly added, making this the largest segment, accounting for approximately 63% of group revenue. Under the Medium-Term Management Plan 2028, nationwide expansion of the fire and disaster prevention business is being promoted as a Growth investment area.

Recent Overview

Entry into financial SES via Systems Service subsidiary; fire and disaster prevention delivered 5 projects, but margin declined due to higher personnel costs

On January 29, 2026, Systems Service Co., Ltd. (acquisition cost ¥288 million, goodwill ¥211 million, amortized equally over 10 years) became a wholly owned subsidiary, newly launching SES for financial institutions. The fire communication command system was delivered to 5 locations nationwide (including 4 new locations), expanding the order backlog by 66.8% year-on-year to ¥958 million. On the other hand, operating profit declined to ¥253 million (down 11.4% year-on-year) due to increased operating expenses such as personnel costs. Additionally, an absorption-type merger agreement with Systems Service was concluded as of April 21, 2026, and it has been announced that an absorption-type merger, with the effective date scheduled for October 1, 2026, and Systems Service as the dissolved company, will be carried out.

Key Products

Growth Drivers

• Accelerated nationwide expansion of the fire communication command system (SYMPROBUS F Series) (5 deliveries in cumulative Q3, order backlog up 66.8% year-on-year to ¥958 million)
• Incorporation of SES business for financial institutions and diversification of target industries and customer base through the subsidiary consolidation of Systems Service Co., Ltd.
• Capturing generative AI and DX-related demand through expanded business with AI solution vendors
• Steady performance of GIS Solutions (including projects related to statistical systems for the 2025 Population Census)
• Nationwide sales expansion of cloud services for municipalities (Vehicle Inspection Tax Payment Confirmation Support System, AttRec)
• Promotion of M&A in the Greater Tokyo area toward the ¥10 billion group revenue target for FY2028 (ending March 2028) under the Medium-Term Management Plan 2028

Risks

• Declining profit margin due to a lag between increased personnel costs (investment in hiring and training) and revenue contribution (cumulative Q3 operating margin fell sharply to 6.9% from 9.5% in the same period of the prior year)
• Percentage-of-completion risk, whereby revenue from the fire communication command system is affected by the progress and completion timing of large-scale projects
• Risk of incomplete purchase price allocation for goodwill (¥211 million, provisional value) arising from the Systems Service acquisition, and post-merger integration (PMI) risk
• Continued requests for plan revisions and staffing adjustments due to manufacturing customers' cautious stance on IT investment
• Difficulty securing excellent engineers due to engineer shortages and intensifying recruitment competition
• Risk of cost pressure on the fire and disaster prevention business due to rising procurement costs for equipment and necessary materials