Astroscale Holdings (186A) Q4 2026 earnings summary

Executive summary

• Raised ¥30.6 billion via convertible bonds and new shares, with strategic investors HULIC and SKY Perfect JSAT participating to support growth and repeatable business initiatives.

• Revenue for the nine months ended January 31, 2026, rose 194.5% year-over-year to ¥4,415.98 million, with project income up 125.1% to ¥8,349.28 million, driven by strong government and commercial contracts.

• Achieved full-year positive gross profit, with profit significantly exceeding initial forecasts due to FX impact.

• Major new contracts were secured with NASA, ESA, JAXA, U.S. Air Force, and Japan's Ministry of Defense, supporting future growth.

• Backlog at period-end was ¥25,548.05 million, with expected backlog and contract awards totaling ¥41,148.83 million.

Financial highlights

• Project income rose 89.0% year-over-year to ¥11.5 billion, driven by progress on existing projects.

• Operating profit improved significantly year-over-year, with a full-year loss of ¥9.9 billion, aided by capitalization of LEXI-P satellite manufacturing costs.

• Gross profit turned positive for the full year, a significant improvement from prior losses.

• Cash and cash equivalents at period-end were ¥13,929.10 million, down ¥7,371.77 million from April 30, 2025.

• Backlog at year-end was ¥37.9 billion, with ¥27.5 billion contracted and ¥10.5 billion confirmed but uncontracted.

Outlook and guidance

• FY2027 project income forecasted at ¥12.5–17.0 billion, based on current backlog and contracted projects.

• Fiscal year ending April 2026 project income forecast is ¥11,000–13,000 million, with revenue of ¥5,000–6,000 million and government subsidy income of ¥6,000–7,000 million.

• Revenue expected to grow 17.8%–51.5% year-over-year, with government subsidy income forecasted at ¥5.5–8.0 billion.

• Operating loss projected to narrow to ¥9.9–9.0 billion.

• Management targets positive gross profit and operating profit as early as possible, with long-term gross margin and operating margin goals in the mid-30% and mid-20% ranges, respectively.