ARGO GRAPHICS Inc.
7595・Prime Market・Information & Communication
PLM Business
Core business accounting for approximately 97% of consolidated net sales, providing CAD and IT infrastructure solutions to the manufacturing industry
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment net sales | ¥69,489 million | ¥67,532 million | ↑ |
| Segment profit (operating income) | ¥10,485 million | ¥9,943 million | ↑ |
| Segment assets | ¥76,640 million | ¥82,217 million | ↓ |
| Segment liabilities | ¥28,873 million | ¥26,142 million | ↑ |
| Share of consolidated net sales | 97.2% | 97.1% | — |
| PLM Solutions net sales | ¥41,482 million | ¥39,597 million | ↑ |
| System Construction Support net sales | ¥24,844 million | ¥24,869 million | — |
| Maintenance & Other Services Incidental to HW Sales net sales | ¥3,162 million | ¥3,065 million | ↑ |
Business Details
With the automotive, electric machinery, semiconductor, and other manufacturing industries as its main customers, this segment consists of three categories: PLM Solutions centered on Dassault Systèmes' 3D CAD software CATIA, System Construction Support for servers and other equipment, and HW maintenance. Net sales for the current period were ¥69,489 million, accounting for 97.2% of consolidated net sales, making it the flagship segment, with IT investment demand in the automotive-related industry and expanding capital expenditure in the semiconductor-related industry serving as its main revenue base.
Recent Overview
IT investment for automotive and semiconductor applications remained steady, resulting in year-on-year increases in both net sales and profit, while assets decreased due to the sale of investment securities and other factors
PLM Business net sales for FY2026 (ending March 2026) were ¥69,489 million (up 2.9% year on year), and segment profit was ¥10,485 million (up 5.5% year on year). PLM Solutions increased by ¥1,885 million, supported by steady IT investment in the automotive-related industry against a backdrop of a shift in Europe and the US from an exclusive focus on EVs toward reconsideration of hybrid vehicles. In System Construction Support, HW-centered solutions grew due to expanded IT equipment investment at domestic semiconductor production sites, absorbing the decline from the reversal of a large-scale project recorded in the prior period. Segment assets decreased by ¥5,577 million year on year due to the sale of investment securities and other factors.
Key Products
Growth Drivers
- Continued IT investment for enhanced development driven by responses to electrification and the reconsideration of hybrid vehicles in the automotive-related industry
- Expanding demand for System Construction Support due to strengthening of domestic production sites and new/expanded facilities in the semiconductor-related industry
- Increased capital expenditure in the semiconductor and precision equipment fields driven by expanding demand for generative AI and data centers
- Maintaining high sales levels with major manufacturing customers such as the Honda Group
- Development of new solutions in AI, IoT, digital twins, and other areas through the Advanced Technology Research Department
Risks
- Risk of changes in investment policy due to the shift toward electrification in the automotive-related industry, a key customer segment
- Risk that uncertainty in the global economy, stemming from US tariff hikes and escalating friction in Japan-China relations, may suppress capital expenditure by manufacturing customers
- Risk of changes in Dassault Systèmes' management policy or decline in product competitiveness (dependence on external mainstay software)
- Risk of investment restraint due to fluctuations in the semiconductor market
- Risk that securing and developing highly skilled personnel in new technology areas such as AI/IoT may not proceed as planned
- Risk of quarterly earnings volatility due to concentration of orders in the fourth quarter
Last updated: June 19, 2026