Astroscale Holdings (186A) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 rose 422.3% YoY to ¥1,250 million, with project income up 103.1% to ¥2,368 million, driven by new contracts and government subsidies.

• Secured 3 projects worth ¥1.4bn in Q1 and ¥2.0bn YTD, with backlog at ¥43.7bn as of Q1 end; bookings for the quarter totaled ¥1,444 million.

• Operating loss narrowed to ¥2,376 million from ¥7,598 million YoY, with net loss attributable to owners improving to ¥1,211 million from ¥8,580 million.

• Major contracts secured include U.S. Air Force Research Laboratory, REFLEX-J, and commercial docking plates with Xona Space Systems; new patent for ADR-related design.

• New space defense strategies in Japan and UK are driving global momentum for space defense and industry growth.

Financial highlights

• Q1 revenue reached a record high of ¥1,250 million, gross profit positive for third consecutive quarter.

• Project income up 103.1% YoY to ¥2,369 million; operating loss narrowed to ¥2,376 million from ¥7,598 million YoY.

• SG&A expenses down 29.3% YoY, mainly due to capitalization of LEXI-P costs.

• Cash and cash equivalents increased to ¥25,811 million, supported by a ¥10,622 million international offering.

• Equity rose to ¥14,586 million, up 138% from prior year; equity ratio at 35.6%.

Outlook and guidance

• No revisions to FY2026 full-year forecast: project income ¥11,000–13,000 million, revenue ¥5,000–6,000 million, government subsidy income ¥6,000–7,000 million.

• Revenue from LEXI-P expected from FY2027 onward.

• Operating loss projected at ¥9,300–10,300 million; net loss at ¥9,700–10,700 million, both showing significant improvement YoY.

• Focus on strict cost control and financial discipline; aiming for profitability as project mix improves.

• Targeting positive gross profit and operating profit margins in the mid-30% and mid-20% range, respectively, over the long term.