Ai Holdings raises annual operating profit
Ai expects design earnings to decline next year as large seismic assessment work falls away.
Ai Holdings Corporation (TSE-3076) reported an increase in operating profit for the fiscal year ended June 30, 2026, compared with the preceding fiscal year.
Ai's information and communications business became profitable as the company accelerated the integration of recently acquired subsidiaries, curbed their selling and administrative expenses, and improved their cost ratios.
Ai's information and communications revenue rose 129.2%, reflecting the addition of Nakayo's communications equipment business, which became a consolidated subsidiary during the fiscal year.
Ai's information and communications business recorded a substantial profit increase as it concentrated on reducing costs and directing sales efforts toward products that offered higher profit margins.
Ai transferred production of some office business telephone products from one subsidiary to Nakayo's factory as part of its efforts to improve efficiency by integrating those operations.
Ai aims to further raise the operating profit margin of its information and communications business by continuing to reduce costs and improve operational efficiency.
Ai plans to keep pursuing acquisitions as an important means of implementing its longer-term strategy of maintaining strong profitability and stability in industries subject to rapid change.
Ai would consider long-term borrowing if a large acquisition required substantial funding under its plans to strengthen acquisition activity as a means of supporting further business growth.
Ai's security equipment business achieved its sixth consecutive annual operating profit record, supported by steady business serving condominium buildings and large orders from customers in the general corporate market.
Ai's condominium security business performed steadily as it secured equipment replacement work when leases expired and won numerous new projects involving condominium developments during the fiscal year.
Ai aims to sustain long-term demand in condominium security by systematically following up on equipment replacement opportunities, reflecting a business in which leases account for most contracts.
Ai's corporate security business performed steadily as demand increased for complete systems that combine cameras with artificial intelligence to recognize and analyze images and video.
Ai expects its condominium security business to continue expanding steadily from the next fiscal year onward, with replacement demand remaining the main basis for that expected growth.
Ai plans to support the maintenance and expansion of its corporate security business by working with leading distributors to broaden the products available and supply them in response to customer requirements.
Ai's design business increased revenue 33.6% as it maintained a steady flow of structural design orders and secured large seismic assessment contracts during the fiscal year.
Ai's design business recorded a substantial profit increase after winning large seismic assessment orders, which contributed to the business's strong performance over the course of the fiscal year.
Ai aims to maintain stable performance in its design business through initiatives that draw on its particular capabilities and its strengths across the broader field of structural design.
Ai expects design profit to decline in the next fiscal year because the contribution from large seismic assessment work is set to fall away from the business.