AeroEdge (7409) investor relations material

Executive summary

• Q1 FY2027 revenue reached a record ¥1,597.6m, up 38.1% YoY, and operating income was a Q1 record ¥284.3m, up 15.8%; results slightly exceeded initial expectations.

• Growth reflected Ono Plant consolidation and initial Engine B sales; prior-year comparisons are against standalone results, while Q1 FY2027 is consolidated.

• Planned production adjustments for capacity upgrades weighed on blade volumes; investment continued in capacity, new-materials production and new engine programs.

Financial highlights

• Revenue was ¥1,597.6m, up ¥440m or 38.1% YoY; gross profit was ¥575.4m, up 10.3%, with gross margin at 36.0% versus 45.1%.

• Operating income was ¥284.3m, up 15.8%; operating margin was 17.8%, down 3.4pt YoY, as launch, development, hiring, equipment, labor and inflation costs weighed.

• Net income attributable to owners was ¥156.2m, down 0.2% YoY; higher interest expense and FX losses offset operating profit growth.

• EBITDA increased 34.4% to ¥460m; EBITDA margin was 28.8% versus 29.6% a year earlier.

• Ordinary income was ¥241.5m and comprehensive income was ¥174.1m.

Outlook and guidance

• FY2027 guidance is unchanged: revenue ¥7,950m (+56.4%), operating income ¥1,550m (+35.3%), ordinary income ¥1,441m (+28.9%), net income ¥960m (+22.9%) and EBITDA ¥2,381m (+52.4%); all are forecast records.

• Guidance assumes ¥152/$; each ¥1/$ move is expected to affect revenue and operating income by ¥40–50m, positively with yen depreciation.

• Q1 achieved 20.1% of revenue and 18.3% of operating-income guidance; Q2 anticipates production-adjustment recovery and development sales, with new LEAP and Engine B volumes expected to expand in H2.

• New-materials supply is scheduled to begin at low volume in FY2027, with volumes targeted to expand in stages.

• Blade sales are forecast at 1,084 engine-equivalent units, up 28.0% YoY; Engine A revenue contribution is now expected in FY2028.