ACSL (6232) Q2 2025 earnings summary

Executive summary

• Q2 revenue reached 975 mn JPY, with a significant YoY increase in backlog, but net sales for the six months declined 52.4% YoY to 975 mn JPY.

• Operating loss for Q2 was 515 mn JPY (improved by 247 mn YoY, excluding SBIR), while the six-month operating loss was 754 mn JPY, narrowing from the prior year.

• Net loss for Q2 was 271 mn JPY, a YoY improvement of 758 mn JPY; comprehensive income loss improved to 280 mn JPY from 1,000 mn JPY YoY.

• 225 mn JPY in extraordinary losses related to misconduct recorded in Q2; no impact on past financial statements.

• Net assets increased to 546 mn JPY as of June 30, 2025, up from 194 mn JPY at December 31, 2024.

Financial highlights

• Q2 sales totaled 975 mn JPY, exceeding previous year's annual sales (excluding India project); backlog at 1.17 bn JPY.

• Gross profit margin for Q2 at 9% (+4pt YoY); gross profit for six months was 84 mn JPY, down YoY.

• SG&A (excluding SBIR) reduced to 599 mn JPY (down 263 mn JPY YoY); operating loss narrowed to 515 mn JPY.

• Ordinary profit improved to -45 mn JPY (up 918 mn JPY YoY) due to SBIR grant income.

• Cash and cash equivalents at period end rose to 1,816 mn JPY from 1,243 mn JPY at the previous year-end.

Outlook and guidance

• Full-year sales forecast revised to 3.15 bn JPY (up 18.6% YoY), with gross margin 21% and operating loss projected at 1.4 bn JPY.

• Net loss attributable to owners of parent forecasted at 1.8 bn JPY; basic earnings per share for the full year forecasted at a loss of 115.42 JPY.

• Targeting revenue CAGR over 20% and gross margin above 40% in the medium to long term; aiming for profitability with sales over 5 bn JPY in FY26–FY28.

• Local government project sales only include received orders; unbooked orders excluded from forecast.