PowerX (485A) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 saw strong year-over-year revenue and profit growth, with production progress at 60% and a significant increase in order backlog to ¥101.9 billion for FY2026–2030, up ¥12.9 billion since May.

• Net sales for the six months ended June 30, 2026 rose 48.3% year-over-year to ¥6,893 million, driven by strong demand for energy storage systems and government subsidies.

• Operating loss narrowed to ¥1,073 million from ¥1,563 million year-over-year, with ordinary loss at ¥1,518 million and net loss attributable to owners of parent at ¥1,551 million.

• The company disclosed its FY2027 business outlook and continues preparations for a TSE Prime Market transfer, while global business expansion is actively advancing.

• Order backlog as of August 13, 2026 reached ¥101,876 million, with ¥41,560 million scheduled for revenue recognition in FY2026, achieving 101% progress toward the full-year net sales forecast.

Financial highlights

• Q2 FY2026 revenue rose 48.3% YoY to ¥6,893 million, with gross profit up 31.3% YoY and operating profit improving by ¥489 million.

• EBITDA loss narrowed by ¥530 million YoY, and ordinary profit improved by ¥687 million.

• EBITDA for the period was negative ¥778 million, compared to positive ¥1,308 million in the prior year.

• Gross profit increased to ¥1,900 million from ¥1,447 million year-over-year.

• Revenue recognition is heavily weighted to H2, with 82% of FY revenue expected in Q3–Q4 due to customer and subsidy-driven delivery schedules.

• Gross margin in Q2 was 24.8%, with full-year margins expected to soften slightly due to FX and raw material prices.

• Cash and cash equivalents decreased by ¥2,451 million to ¥5,003 million due to inventory buildup and capital investments.

• Total assets increased to ¥33,049 million, up ¥6,813 million from December 2025, mainly from inventory and advance payments.

• Net assets rose to ¥7,340 million, reflecting new share issuance and capital surplus increases.

Outlook and guidance

• FY2026 revenue forecast was raised to ¥40.0 billion (+5.2%), with profit forecasts unchanged as incremental earnings will fund R&D.

• Full-year net sales forecast for FY2026 is ¥40,000 million, up 107.2% year-over-year, with EBITDA projected at ¥2,500 million and operating profit at ¥2,000 million.

• FY2027 outlook targets ¥68–72 billion in revenue and ¥5–6 billion net profit; FY2030 targets are ¥200+ billion revenue, 35%+ ROE, and sustained positive FCF.

• 72% of FY2027 revenue outlook is already secured by orders, with 12 months remaining to secure additional orders.

• Basic earnings per share for FY2026 is forecast at ¥8.80, recalculated to reflect share increases and stock splits.

• No change to previously announced full-year guidance; actual results may differ due to market factors.