AeroEdge (7409) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 FY2025 was ¥743 million, a 4.0% decrease year-over-year, with operating profit at ¥50 million, down 58.5% from the prior year.

• Net loss for the quarter was ¥7 million, compared to a net profit of ¥110 million in Q1 FY2024.

• The company renewed its supply contract for titanium-aluminum blades, extending the period to 2034 and increasing market share from 35% to 40%.

• Sales volume of engine blades decreased 6.2% year-over-year due to supply chain disruptions and labor shortages in the aerospace sector.

• Investments in new production capacity and R&D increased costs, impacting profitability.

Financial highlights

• Operating profit fell sharply to ¥50 million, a 58.5% year-over-year decline.

• Ordinary loss of ¥6.8 million, compared to a profit of ¥126.7 million in the prior year.

• Net loss per share was ¥1.85, versus earnings per share of ¥29.31 in Q1 FY2024.

• Gross profit margin declined as sales and production costs shifted.

Outlook and guidance

• Full-year revenue forecast remains unchanged at ¥3,760 million, up 12.2% year-over-year.

• Operating profit for the year is projected at ¥500 million, up 29.1% from the previous year.

• Net profit forecast for the year is ¥435 million, with EPS of ¥117.58.