PowerX (485A) Q2 2026 earnings summary

Executive summary

• H1 net sales rose 48.3% YoY to ¥6,893 million, driven by energy storage demand and subsidies; production progress reached 60%.

• Order backlog reached ¥101,876 million as of August 13, up ¥12.9 billion in three months; ¥41,560 million was scheduled for FY2026 revenue recognition.

• FY2027 outlook was disclosed, with 72% of forecast revenue already secured; preparations for a TSE Prime Market transfer continued.

Financial highlights

• H1 operating loss narrowed to ¥1,073 million from ¥1,563 million; ordinary loss was ¥1,518 million and net loss attributable to parent owners was ¥1,551 million.

• Gross profit increased to ¥1,900 million from ¥1,447 million; H1 EBITDA was negative ¥778 million versus positive ¥1,308 million a year earlier.

• Q2 gross margin was 24.8%; EBITDA loss narrowed to ¥226 million, with losses expected to narrow in Q3 and profitability to recover significantly in Q4.

• Cash and cash equivalents fell ¥2,451 million to ¥5,003 million, mainly from inventory buildup and capital investments; operating cash flow was negative ¥4,659 million.

• SG&A decreased 3% YoY to ¥1.6 billion; sales and marketing costs rose on storage expenses, while R&D and G&A declined.

Outlook and guidance

• FY2026 net sales forecast is ¥40 billion, up 107.2% YoY; EBITDA is projected at ¥2.5 billion and operating profit at ¥2 billion, with profit forecasts unchanged after the sales forecast increase.

• FY2027 outlook targets ¥68–72 billion revenue, operating profit of at least ¥5.5 billion and net income of ¥5–6 billion; assumptions include current FX, component prices and economic conditions.

• 72% of FY2027 revenue outlook is secured, with 12 months remaining to secure further orders; international projects are excluded and could provide upside.

• FY2030 targets include revenue of ¥200 billion+, ROE of 35%+ and sustained positive free cash flow.