Ecomott Reports Third Quarter Revenue Drop Amid Strategic Acquisitions and Divestitures

TOKYO, Jul 13 (Pulse News Wire) – Ecomott Inc. (3987.S) reported a decline in revenue for the third quarter ending August 2026, primarily due to the divestiture of Power Denki Innovation on August 29, 2025.

Despite this, the company's gross margin improved by 1.5 percentage points compared to the previous quarter, driven by cost optimization efforts. Revenue was ¥1.586 billion, down from ¥2.03 billion in the same period last year, marking a decrease of 22%. Gross profit also declined to ¥612 million from ¥753 million, representing a 19% reduction. lower operating profit widened to ¥119 million from ¥11 million previously, while net income showed improvement to a loss of ¥29 million from ¥57 million in the prior year.

The construction solutions division saw robust growth, contributing significantly to the overall performance despite challenges faced by the IoT Business Innovation sector. Key initiatives such as the production efficiency-enhancing AI camera “PROLICA” and communication systems like “G Wave” drove sales increases in the construction solutions area. Additionally, Ecomott acquired Tokuyama Water Processing Co., Ltd. on March 2, 2026, which contributed positively to the bottom line through negative goodwill recognition.

The company continues to focus on expanding its presence in the physical AI and aquaculture digital transformation markets, aiming to achieve sustainable growth and support a more resilient society.