ispace (9348) Q2 26/27 earnings summary

Executive summary

• H1 FY2026/27 net sales were ¥569m, operating loss ¥8,854m and net loss attributable to owners of parent ¥10,452m; cash and deposits were ¥22,585m at September 30, 2026.

• Mission 3 and Mission 4 contract values were ¥18.7bn and ¥32.4bn, with ¥15.0bn and ¥32.3bn unrecognized, respectively.

• Contracted revenue and grants not yet recognized total $322m over five years, including at least $302m over four years.

• NASA selected a U.S. subsidiary as a CLPS 2 prime contractor, enabling direct bids for lunar delivery task orders under a framework with a $10bn aggregate ceiling.

Financial highlights

• H1 net sales fell 74.1% YoY to ¥569m; gross loss was ¥5,208m, versus gross profit of ¥383m a year earlier.

• Operating loss widened to ¥8,854m from ¥4,162m YoY; ordinary loss was ¥10,445m and net loss ¥10,452m.

• Q1 included ¥3.7bn of COGS impairment from lander-model consolidation and an engine change; development-related expenses fell 25.1% YoY to ¥3.064bn.

• H1 operating cash outflow was ¥7,876m, investing outflow ¥643m and financing inflow ¥1,460m; cash and cash equivalents decreased ¥7,105m to ¥22,585m.

Outlook and guidance

• FY2026/27 guidance remained unchanged: project revenue ¥9,000m (+50.8% YoY), net sales ¥3,300m, operating loss ¥17,700m, ordinary and net losses ¥13,000m, and basic EPS loss of ¥88.86.

• H2 project revenue is expected to accelerate with higher M3 SBIR receipts and initial M4 Space Strategy Fund receipts; M4 development is expected to ramp up.

• M3 launch is now expected by end-2028 versus the prior end-2027 plan; revised timing is under coordination for formal approval. M4 launch is planned for 2029.

• Future results may differ materially from forecasts, which are based on currently available information and assumptions.