AeroEdge (7409) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 results with revenue up 46.0% YoY to ¥2,473.7 million, operating profit up 166.0% YoY to ¥737.9 million, and net income up 141.6% YoY to ¥487.1 million, driven by strong demand for titanium-aluminum blades for A320neo, 737MAX, and LEAP engines, and high-margin contract development sales.

• Upward revision of full-year forecasts due to yen depreciation, robust sales, and increased production capacity, despite some delays in new mass production projects.

• Signed new contracts for supply and market share expansion of new materials for titanium-aluminum blades with SAFRAN, aiming to expand market share from 40% to the high 40% range by 2028, with mass production to begin in July 2026 and full-scale in January 2028.

• Investments in new production facilities and R&D for new materials continued, supporting future growth and risk mitigation from supplier concentration.

Financial highlights

• Q2 revenue: ¥2,473.7 million (+46.0% YoY), operating profit: ¥737.9 million (+166.0% YoY), net income: ¥487.1 million (+141.6% YoY), EBITDA: ¥932 million (+100.1% YoY), ordinary profit: ¥714.5 million (+199.6% YoY).

• Gross margin improved to 50.9% in Q2 as sales outpaced cost increases.

• Q2 progress rates: revenue 49.0%, operating profit 69.0% of revised full-year forecast.

• EPS (after stock split): ¥41.45 (vs. ¥17.54 YoY).

• Cash and equivalents at period-end: ¥3,340.8 million, up ¥1,766.9 million from prior year-end.

Outlook and guidance

• Full-year revenue forecast revised up to ¥5,050 million (+40.2% YoY), operating profit to ¥1,070 million (+63.3% YoY), net income to ¥700 million (+4.7% YoY), and EPS forecast (post-split) to ¥58.91.

• Titanium-aluminum blade sales expected to rise 31.9% YoY to ¥4,486 million.

• New mass production projects delayed by several months but expected to contribute from FY27.

• Guidance reflects ongoing investments and anticipated market share gains.