ACSL (6232) Q3 2025 earnings summary

Executive summary

• Full-year sales forecast revised downward to 2.7 bn JPY from 3.15 bn JPY due to U.S. delivery delays, while domestic sales remain on track at 1.85 bn JPY.

• Net sales for the nine months ended September 30, 2025, were 1.246 bn JPY, a 41.4% decrease year-over-year, but cumulative Q3 sales increased 810 mn JPY YoY in some segments.

• Operating loss forecast (excluding SBIR expenses) is 970 mn JPY; ordinary loss forecast is 1.4 bn JPY, with net loss attributable to owners of parent improved to 991 mn JPY from 1.656 bn JPY YoY.

• Gross profit margin improved to 9% (up 5 pts YoY); operating loss narrowed by 320 mn JPY YoY (excluding SBIR expenses).

• Strengthened defense sector ties, expanded U.S. partnerships, and selected for major national R&D programs.

Financial highlights

• Q3 sales (excluding India project) increased 191% YoY to 1.24 bn JPY; backlog up 624 mn JPY YoY.

• Gross profit for Q3 cumulative period was 110.7 mn JPY, up from 92 mn JPY YoY; gross profit margin at 9%.

• SG&A expenses (excluding national projects) reduced by 304 mn JPY YoY to 910 mn JPY.

• Operating loss (excluding national projects) improved by 322 mn JPY YoY to -800 mn JPY; comprehensive income loss improved to 1.005 bn JPY from 1.663 bn JPY YoY.

• Net assets rose to 1.09 bn JPY from 194 mn JPY at year-end 2024; total assets increased to 4.649 bn JPY.

Outlook and guidance

• Full-year 2025 net sales forecast at 2.7 bn JPY, up 1.7% YoY, revised due to deferred U.S. deliveries; domestic sales steady.

• Full-year operating loss forecast at 1.4 bn JPY and net loss at 1.8 bn JPY; basic earnings per share forecasted at (112.08) JPY.

• Gross profit expected to decrease by 150 mn JPY; gross margin projected at 19%.

• Cost structure improvements and SG&A reductions expected to keep profits in line with previous forecasts.

• Targeting profitability within three years, with mid- to long-term sales CAGR of 20%+ and gross margin of 40%+.