Astroscale Holdings (186A) Q2 2025 earnings summary

Executive summary

• On-Orbit Servicing (OOS) is a rapidly growing market, with the company positioned as a global leader through pioneering technology, successful debris removal and inspection missions, and a strong international presence.

• International momentum for space sustainability is increasing, with actions from the UN, ITU, G7, and regulatory changes accelerating market growth.

• Major contracts such as ADRAS-J2 (¥12bn), ELSA-M Phase 4, and CRD2 Phase II have significantly strengthened the order backlog, with further growth expected from LEXI-P, Project A, and defense projects.

• Institutional demand is surging, with a robust order backlog and significant contracts secured, supporting future commercial expansion.

• Project income for the six months ended October 31, 2024, rose 101.2% year-over-year to ¥2,520 million, driven by government subsidies and new contracts.

Financial highlights

• Confirmed order backlog increased to ¥28.5 billion, with Q2 YTD bookings of ¥15,481 million and further growth expected.

• FY 2024 project income reached JPY 4.6 billion, with a forecasted increase to ¥12,000 million for FY2025 due to project timing shifts.

• Operating loss for Q2 YTD was ¥12,121 million, reflecting delays in key project contracts and increased R&D costs.

• Cash and cash equivalents surged to ¥27,764 million, bolstered by IPO proceeds and advance customer payments.

• Gross margin for Q2 YTD was -598.2%, impacted by a one-time ¥3.2bn loss provision for ELSA-M Phase 4.

Outlook and guidance

• Full-year project income forecast revised to ¥12,000 million, with revenue expected at ¥8,000 million and operating loss at ¥17,000 million.

• Gross profit break-even targeted for the full year, with operating profit break-even expected in FY 2026.

• R&D expenses expected to peak this year and decrease significantly next year, supporting improved profitability.

• Focus remains on securing additional institutional contracts, stimulating commercial demand, and increasing fully-funded projects.

• No dividend is planned for the fiscal year ending April 30, 2025.