ENVALITH
株式会社内田洋行 logo

Uchida Yoko Co.,Ltd.

8057・Prime Market・Wholesale Trade

Official website
株式会社内田洋行 logo
Uchida Yoko Co.,Ltd.8057

Business

The Uchida Yoko Group has a 115-year history since its founding in 1910, comprising the Company along with 28 subsidiaries and 10 affiliated companies. It operates three segments: Public Sector Business (ICT and space construction for education and local governments), Office-Related Business (office furniture and space design for private and public sectors), and Information-Related Business (ICT and SI services for major private-sector companies). The Group manages its ICT-related business and environment-building-related business along two axes, organized within a four-quadrant matrix of private and public markets, under its group vision of "Designing the Valorization of Information and the Co-creation of Knowledge." Consolidated net sales for FY2025 (ended July 2025) reached a record high of ¥337,055 million.

Business Model

The company has a diversified revenue structure combining hardware and software license sales, system integration, maintenance services, office furniture manufacturing/sales/installation, and space design. In the public sector market, it secures large-scale projects linked to national policies (GIGA School program, local government standardization), while in the private sector market, it captures demand from subscription-based license contracts and ongoing office renewal needs. The company is strengthening its ability to win projects through enhanced group collaboration via a shared group sales management system.

Company Strengths

The company has a track record of delivering large volumes of devices to schools nationwide in response to the GIGA School Program, and has accumulated extensive expertise in integrated school administration and learning network projects. In FY2025 (ended July 2025), Public Sector Business revenue reached ¥92,781 million (up 14.6% year on year), with operating profit of ¥5,240 million (up 73.4% year on year), marking substantial growth.

The company has a distinctive structure that develops ICT-related business and environment construction-related business across a four-quadrant matrix covering private and public sectors, and has spent over 10 years since the 14th Medium-Term Management Plan building a resource-sharing framework. The three segments—Information-Related Business (revenue of ¥183,661 million), Public Sector Business (¥92,781 million), and Office-Related Business (¥59,419 million)—complement one another, giving the company a competitive advantage in winning large, complex projects that would be difficult to secure through a single business alone.

In the Information-Related Business, contracts for Cloud-Based Subscription Software Licenses have continued to expand, and an ultra-large-scale deal was won in the fourth quarter of FY2025 (ended July 2025). The Meeting Room Operation Support Service "SmartRooms" has an industry-leading track record and has steadily increased its number of contracted rooms. These factors pushed Information-Related Business revenue up 31.5% year on year to ¥183,661 million.

ENVALITH's Perspective

Public Sector Business revenue for the cumulative nine months of Q3 FY2026 (ending March 2026) reached ¥141,469 million (up 89.4% year on year), showing exceptional growth, but this was the result of device replacement demand driven by NEXT GIGA peaking in the third quarter under review. The full-year earnings forecast (revenue of ¥421,000 million, up 24.9% year on year) has already been revised upward, but from FY2027 (ending March 2027) onward, demand of a similar scale is unlikely to be seen again, and it will be necessary to carefully assess the impact of a rebound decline in the Public Sector Business on overall company performance. The risk of additional provisions for product warranty reserves related to GIGA School projects (totaling ¥749 million recorded in the current period) also remains a point to watch.

As of the cumulative nine months of Q3 FY2026 (ending March 2026), the company recorded revenue of ¥314,373 million and operating profit of ¥15,924 million, with operating profit already exceeding the full-year forecast (revenue of ¥421,000 million, operating profit of ¥15,400 million). Compared to the performance trend over the past five fiscal periods (operating profit of ¥10,363 million in FY2021 rising to ¥12,174 million in FY2025), the acceleration in growth is clear, and the key points for investment judgment will be the degree of certainty in achieving the target for the final year of the 17th Medium-Term Management Plan (FY2027, ending July 2027), as well as the growth scenario beyond that and the direction of the next medium-term plan.

Total assets as of the end of Q3 FY2026 (ending March 2026) expanded sharply to ¥214,931 million (up 22.9% from the previous fiscal year-end), while the equity ratio declined by 2.2 percentage points from 40.3% to 38.1%. Notes and accounts receivable and contract assets swelled to ¥101,723 million (up 46.1% from the previous fiscal year-end), with the uneven timing of revenue recognition during the period from large-scale public sector projects such as GIGA School and the lengthening of the collection cycle pushing up working capital. It should also be noted that, since a quarterly consolidated statement of cash flows has not been prepared, it is difficult to grasp the actual state of operating cash flow.

Growth Strategy

Under the 17th Medium-Term Management Plan, the Group is consolidating its ICT and environment-building resources to deepen its focus on priority markets in both the public and private sectors

The company aims to reliably capture the replacement demand for one-device-per-student under the GIGA School Program (peaking in the third quarter under review), while expanding into peripheral services such as kitting, network integration, security, and product warranty support to enhance revenue depth. It is building a support system that exceeds the previous rollout to lay the groundwork for the next replacement cycle.

In the nationally promoted local government DX and system standardization initiative, the company is steadily implementing the migration of core systems (with some projects extending into subsequent periods) and welfare systems. Work scheduled for the current period has been completed smoothly, and continued order intake for projects extending into future periods will support performance in subsequent periods.

The company is expanding real-time visualization systems for employee location and office environment data, cloud-based meeting room reservation support services, and Cloud-Based Subscription Software Licenses for major private-sector companies. Revenue in the Information-Related Business reached ¥126,880 million (up 11.8% year on year), continuing its growth trajectory. The company is also leveraging favorable external tailwinds such as the spread of free-address seating and hybrid work arrangements.

Under the 17th Medium-Term Management Plan (FY2025 (ending July 2025) to FY2027 (ending July 2027)), the company is strengthening collaboration and reorganization among its Public Sector, Office, and Information business units. To realize the Group's vision of "Value Creation from Information and Collaborative Creation of Knowledge," it is building a foundation for sustainable growth while making human capital investments, including continued base pay increases. Selling, general and administrative expenses increased to ¥31,496 million (up 8.2% year on year), but the rate of revenue growth (+34.2%) exceeded this, resulting in positive operating leverage.

Last updated: July 17, 2026