Astroscale Holdings (186A) Q2 2026 earnings summary

Executive summary

• Global demand for on-orbit servicing and space defense surged in 2025, with civil, defense, and commercial sectors increasing budgets and interest in Astroscale's services.

• Multiple new contracts secured with civil, defense, and commercial entities, including major awards from the U.S. Air Force and UK government.

• H1 FY2026 operating profit and net income exceeded initial expectations; Q2 project income hit a record high.

• Contract signings in Q2 totaled ¥620 million, with year-to-date bookings at ¥2.0 billion; total bookings for the period were ¥2,064 million, with a backlog of ¥27,053 million and expected backlog plus anticipated contracts reaching ¥41,096 million.

Financial highlights

• H1 FY2026 project income: ¥5,246 million (+108.1% YoY); revenue: ¥2,619 million (+260.9% YoY); government subsidy income: ¥2,627 million (+46.4% YoY).

• Operating loss narrowed to ¥4,749 million from ¥12,121 million YoY; net loss improved to ¥2,662 million from ¥12,947 million YoY.

• Q2 project income reached a record high, driven by existing projects; gross profit turned positive YoY.

• SG&A expenses decreased 23% YoY, mainly due to capitalization of LEXI-P satellite manufacturing costs.

• Cash and cash equivalents at period-end were ¥20,022 million; interest-bearing debt at ¥11,600 million.

Outlook and guidance

• FY2026 project income forecast: ¥11,000–13,000 million; revenue: ¥5,000–6,000 million; government subsidy income: ¥6,000–7,000 million.

• Operating loss for FY2026 expected to improve to ¥9,300–10,300 million; net loss to ¥9,700–10,700 million.

• Guidance remains conservative due to risks in project progress, FX trends, and exclusion of uncontracted projects.

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