Astroscale Holdings (186A) Q4 2025 earnings summary

Executive summary

• Achieved major technological milestones in on-orbit servicing, including the world's first private RPO demonstration and successful missions such as APOLLO-1 LCD and ADRAS-J, with a vision to make OOS routine by 2030 and enable a circular space economy by 2035.

• Secured 19 contracts valued at ¥30.7 billion for FY2025, with a strategic presence in five countries and aggressive expansion through alliances with Airbus and Indian companies.

• Backlog reached ¥44.4 billion (up 55.6% YoY), surpassing expectations and driven by defense and commercial LEX demand.

• International recognition and regulatory momentum for space sustainability, with active participation in global policy development and industry awards.

• OOS market is expanding rapidly, with cumulative revenue forecasted at $18.2 billion through 2033.

Financial highlights

• FY2025 revenue was ¥2,456.9 million (down 13.9% YoY); project income rose 30.5% to ¥6,088.6 million, with government subsidies contributing ¥3,631.6 million.

• Operating loss widened to ¥18,755 million; net loss for FY2025 was ¥21,551.6 million; EPS: (¥188.91).

• Cash and cash equivalents at year-end were ¥21,300.9 million, up from ¥14,196.2 million.

• SG&A expenses rose to ¥19,104 million (+63.3% YoY), mainly due to R&D and IPO-related costs.

• Backlog reached JPY 39.8 billion, a significant increase since October, driven by fully funded projects across all mission lines.

Outlook and guidance

• FY2026 project income forecasted at ¥11,000–13,000 million (up 80.7–113.5% YoY), with revenue of ¥5,000–6,000 million and government subsidies of ¥6,000–7,000 million.

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

• Targeting positive gross profit and operating profit as early as possible, with long-term gross margin in the mid-30% range and operating margin in the mid-20% range.

• Free cash flow breakeven targeted for FY 2027, with current cash balance deemed sufficient.

• Revenue growth expected mainly in Japan, UK, and US; LEXI-P revenue to start from FY2027.