Astroscale Holdings (186A) Q1 2027 earnings summary

Executive summary

• Secured first on-orbit mission in France and advanced key projects, including ADRAS-J2 launch agreement; backlog at ¥36.3bn, with ¥25.8bn contracted and ¥10.5bn confirmed but uncontracted.

• Global demand for on-orbit servicing remains strong, with UK and European space defense policy and funding progressing.

• Q1 results impacted by temporary delays in revenue recognition; operating loss widened to ¥2,750.0 million, net loss at ¥3,071.7 million.

• Not selected for COSMIC Phase 3, but minimal impact on technology roadmap and long-term business plan.

• Major fundraising of ¥30.6bn completed in June 2026 through convertible bonds and share issuance, supporting growth investments.

Financial highlights

• Project income for Q1 FY2027 was ¥2,024.8 million, down 14.5% YoY; revenue for the quarter was ¥1,195.7 million, down 4.4% YoY.

• Operating loss increased to ¥2,750.0 million, mainly from lower revenue and financial income.

• Gross profit remained positive at ¥72.0 million, with a gross margin of 6.0%.

• Cash balance rose to ¥34,952.8 million after a ¥30.6bn financing round in June 2026.

• SG&A (non-R&D) expenses increased 21.2% YoY, mainly due to a weaker yen.

Outlook and guidance

• FY2027 project income forecasted at ¥12,500–17,000 million, with revenue (IFRS) expected at ¥7,000–9,000 million and government subsidy income at ¥5,500–8,000 million.

• Operating loss for FY2027 forecasted at ¥9,900–9,000 million, with net loss at ¥10,600–9,600 million.

• Forecast will be revised upward as new contracts are secured.

• The company aims for positive gross profit and long-term gross margin in the mid-30% range and operating margin in the mid-20% range.

• Backlog as of July 2026 was ¥36,354 million, including expected backlog from non-competitive follow-on phases.