QPS Holdings (464A) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue was ¥1,895m, operating income ¥594m and net income attributable to owners ¥480m; image-data delivery for the Ministry of Defense satellite constellation program drove growth.

• FY2027 guidance: revenue ¥10,000m, operating income ¥3,200m, ordinary income ¥2,700m, net income ¥2,000m and EPS ¥48.29; EBITDA is ¥7.0bn and business revenue ¥11.5bn.

• Two SAR satellites launched successfully in August; 11 satellites were in orbit, including nine in commercial operation and two in initial commissioning.

Financial highlights

• Q1 gross profit was ¥961m; ordinary income ¥530m; EBITDA ¥1,213m; and business revenue ¥1,897m, including subsidies and other non-operating income.

• Satellite operating costs rose as the number in service increased; depreciation and communications expenses grew, as did eligible SBIR-funded research costs.

• Quarterly depreciation and amortization was ¥631m; basic EPS was ¥8.59 and diluted EPS ¥8.53.

Outlook and guidance

• FY2027 revenue plan comprises ¥8.0bn satellite image-data revenue, ¥2.0bn development and research revenue, and ¥1.5bn subsidy income, including ¥1.2bn from the Space Strategy Fund and ¥0.3bn from SBIR.

• Guidance changes reflect lower satellite depreciation based on actual in-service dates and ¥1.2bn of R&D costs shifted to later periods; associated METI SBIR subsidy income falls ¥0.5bn.

• Seven launches are planned in FY2027, targeting 16 operating satellites at year-end; annual production plan is six satellites, excluding commissioned-development satellites.

• FY2031 targets are revenue ¥30bn, operating income ¥3bn and EBITDA ¥20bn, with annual manufacturing capacity targeted at 20 satellites.