Uchida Yoko Co.,Ltd.

Business Details

This segment handles ICT system construction and equipment sales to the university and elementary/junior high/high school markets, manufacturing and sales of educational equipment, and space design and furniture sales for educational facilities, as well as core business system construction, ICT system construction, and manufacturing, sales, design, and construction of office-related furniture for government agencies and local governments. It is capturing peak demand for the one-device-per-student refresh under the GIGA School Program, while also promoting integration of school administration and learning networks and support for local government system standardization. Consolidated subsidiaries such as Uchida Esco Co., Ltd., Uchida Systems Co., Ltd., and Uchida Techno Co., Ltd. handle manufacturing, sales, construction, and maintenance.

Recent Overview

NEXT GIGA device replacement demand peaked, with sales surging 89.4% year on year

In the cumulative third quarter of FY2026 (ending March 2026)... [note: fiscal year end is July, see below] the segment's core driver, demand for one-device-per-student replacement under the GIGA School Program, peaked in the third quarter, with large-scale deployments concentrated nationwide. Thanks to the effect of kitting center expansion, the company responded smoothly and achieved deployment results exceeding those of the previous GIGA School rollout. Large-scale integrated school administration and learning network projects also remained solid. Local government system standardization work for the current period was completed smoothly. Note that a product warranty provision of ¥749 million was recorded in the cumulative third quarter as support cost related to the operation of GIGA School devices. Sales reached ¥141,469 million (up 89.4% year on year) and segment profit reached ¥10,770 million (up 67.0% year on year), representing substantial growth in both revenue and profit.

Key Products

Growth Drivers

• Demand for one-device-per-student replacement under NEXT GIGA (GIGA School Program) (peaking in the current third quarter) and progress in peripheral services such as kitting
• Expansion of integrated school administration and learning network projects (winning large-scale projects leveraging strengths in network design and security for large device fleets)
• Local government system standardization support (steady progress on core and welfare system migration projects)
• Solid trends in new construction, renovation, and long-life extension projects for school facilities, as well as public facility projects (such as city halls)
• Strengthened intra-group collaboration combining ICT and environment-building know-how for the public sector market (17th Medium-Term Management Plan)

Risks

• Demand for GIGA School device replacement is expected to peak in the third quarter of FY2026 (ending July 2026), with a risk of demand drop-off becoming apparent from the following fiscal year onward
• Risk of timing shifts in public sector project recognition, as some local government system standardization projects are extended into the following fiscal year
• Increased support costs associated with the operation of GIGA School devices (risk of additional product warranty provisions)
• Potential impact of a domestic economic downturn, driven by factors such as the situation in Iran, on public sector budgets and investment plans
• Risk of contraction in the education ICT market due to the long-term decline in the number of schools and students amid the declining birthrate
• Quarterly performance volatility due to concentration of large-scale projects (significant year-on-year fluctuations are expected)