Forum Engineering Inc.
7088・Prime Market・Services
Business
Forum Engineering Inc. is a specialized human resources service company for mechanical and electrical engineers, founded in 1981. The company dispatches 4,486 engineers (as of end-March 2025), who are hired as full-time employees, to 1,376 business establishments among approximately 3,200 business establishments belonging to 8 major industries including automobiles, industrial machinery, and electrical equipment. As a single-segment company where engineer staffing services account for 98.8% of net sales, it supports the entire career spectrum of mechanical and electrical engineers through four services—Cognavi Haken, Cognavi Tenshoku, Cognavi Shinsotsu, and Cognavi College—built on its proprietary AI skill matching platform, Cognavi (AI Matching Platform). The company is listed on the TSE Prime Market. Overseas expansion is also underway through its Indian subsidiary, Cognavi India Private Limited.
Business Model
A stock-type revenue model in which dispatched engineers are hired in principle as full-time employees and dispatched to client companies at hourly rates, with revenue recognized accordingly. The proprietary AI matching system "Cognavi (AI Matching Platform)", built on unique "Skill Tree" and "Technical Tree" frameworks, achieves efficient recruitment and placement, enabling the company to maintain a gross profit margin higher than peers. Cognavi Shinsotsu, Cognavi Tenshoku, and Cognavi College are being cultivated as the second and third pillars of future revenue. Growth in the number of engineers working and continued increases in dispatch unit prices are the key revenue drivers.
Company Strengths
The company has in-house developed the skill-matching system "Cognavi" (AI Matching Platform), which comprises approximately 178,000 technical terms and approximately 150,000 relationship links. Through client management at the department level and skill-based direct matching, the company achieves a higher gross profit margin than industry peers. The operating margin for FY2025 (ended March 2025) reached 12.1% (operating profit of ¥4,201 million).
The company has built four proprietary recruitment channels: comeback hiring, an employee referral program, outreach to past candidates who previously declined offers, and engineering career seminars at 125 science and engineering universities (out of 144 universities with mechanical/electrical engineering departments). The number of hires in FY2025 (ended March 2025) was 992 (up 22 from the previous fiscal year), and the number of active staff reached 4,486 (up 262 from the previous fiscal year), continuing to expand.
The company has a track record of staffing placements at 1,376 business locations and maintains a diversified client base without dependence on any single client accounting for over 10% of net sales. As of the end of FY2025 (ended March 2025), the equity ratio stood at 68.8%, and cash and cash equivalents totaled ¥10,990 million, reflecting strong financial soundness. The company has also secured a ¥2,000 million commitment line with Mizuho Bank and MUFG Bank.
ENVALITH's Perspective
Performance Trend
For the cumulative nine months of FY2026 (ending March 2026) (April–December 2025), net sales were ¥28,155 million (up 8.1% year on year) and operating profit was ¥3,979 million (up 16.5% year on year), maintaining a high rate of profit growth at the operating level, supported by an increase in the number of active engineers (+122) and a rise in the average unit price (+¥174). However, due to the recording of ¥426 million in tender offer-related expenses, total non-operating expenses swelled to ¥435 million, and as a result, ordinary profit came to only ¥3,617 million (up 4.0% year on year) and quarterly net income attributable to owners of the parent came to only ¥2,417 million (up 3.7% year on year). Comparing this with net sales trends over the past five fiscal years (¥27,728 million in FY2021 → ¥34,688 million in FY2025), the trend of rapid profitability improvement since FY2024 has continued, with the operating margin improving to 14.1% (versus 13.1% in the same period of the previous year). The equity ratio also improved to 74.6%, indicating stronger financial soundness. As an external factor, business sentiment among major manufacturers remains firm, and the chronic shortage of engineering talent continues to support demand for staffing services.
Growth Strategy
Growth driven by three pillars: expansion of Cognavi Haken placements, monetization of new-graduate services, and full-scale development of the India business
The company continues to strengthen its hiring of dispatch engineers in order to meet robust demand from client companies. Active headcount at the end of the third quarter of FY2026 (ending March 2026) reached 4,588 (up 122 year on year), reflecting steady results from hiring investment. The average unit price also maintained an upward trend at ¥4,230 (up ¥174 year on year).
From the previous fiscal year, the billing structure was changed from a success-fee model to a listing-fee model in order to stabilize revenue. The number of members for the graduating class of 2027 stood at 9,774 as of the end of the third quarter. The company is actively conducting engineering career seminars at universities led by former manufacturer engineers, driving new member acquisition and building relationships with universities.
The company has built a database of university professors' skills and offers highly specialized training programs in partnership with universities, aligned with corporate reskilling demand. The number of training participants reached 991 at the end of the third quarter (up from 649 in the same period last year, an increase of 342), showing an expanding trend, and is being cultivated as a new revenue source.
India's first AI matching job portal, "Cognavi," has reached approximately 400,000 registered student members. Since March 2025, the company has also launched "WORK IN JAPAN," an initiative connecting students learning Japanese in India with Japanese companies, accelerating efforts toward monetizing the India business.
Last updated: July 17, 2026