ACSL (6232) Q4 2025 earnings summary

Executive summary

• FY25 revenue was JPY 2.59 bn, down 2.1% YoY, with order backlog at JPY 1.11 bn and gross margin up 14pt to 19%. Operating loss improved by JPY 0.45 bn, and ordinary loss improved by JPY 1.11 bn, aided by SBIR subsidy income.

• Net loss attributable to owners was JPY 1.36 bn, better than the JPY 2.37 bn loss in the prior year.

• FY26 forecast: revenue JPY 4.0 bn, gross margin 21%, operating loss (excl. SBIR) JPY 0.76 bn, ordinary loss JPY 0.65 bn, with growth expected in defense and North America.

• Product development advanced with selection for the K Program, potentially receiving up to JPY 2.9 bn in grants for aircraft development.

• Secured growth capital through third-party allotments and share issuance, reinforcing the financial base.

Financial highlights

• Revenue in Japan and the U.S. (excl. India project) expanded to JPY 2.59 bn; order backlog JPY 1.11 bn.

• Gross profit was JPY 0.15 bn, gross margin 19% (up from 6% YoY).

• SG&A decreased to JPY 1.47 bn, narrowing operating loss (excl. SBIR) to JPY 0.96 bn.

• Ordinary loss improved to JPY 1.07 bn, net loss to JPY 1.36 bn, both significantly better YoY.

• Cash and cash equivalents at year-end: JPY 2.02 bn, up from JPY 1.24 bn YoY.

Outlook and guidance

• FY26 revenue forecast at JPY 4.0 bn, gross margin 21%, with operating and ordinary losses expected to narrow further.

• Revenue growth to be driven by defense and North America, with over 1,000 SOTEN units expected to be sold in North America.

• Net loss expected to improve by JPY 0.66 bn YoY.

• Basic earnings per share projected at JPY (38.24) for FY26.

• Targeting JPY 5.0 bn revenue by FY28, with operating profitability at that level.