Synspective (290A) Q4 2024 earnings summary

Executive summary

• FY2024 total revenue rose 80.9% to ¥2,508m; net loss attributable to owners of parent widened to ¥3,593.0m amid higher costs and investment.

• Growth plans focus on expanding Strix capacity and mass production ahead of expected large government contracts and constellation services from 2026.

• FY2025 guidance projects higher total revenue and lower ordinary and net losses.

• Listed on the Tokyo Stock Exchange Growth Market in December 2024 and raised capital through share issuance.

Financial highlights

• FY2024 sales were ¥2,316.6m, up 67.1%; subsidy income was ¥192m and total revenue, including subsidies, was ¥2,508m.

• Operating loss was ¥3,070.2m, ordinary loss ¥3,594.9m and net loss attributable to owners of parent ¥3,593.0m.

• EBITDA was negative ¥1,799m; year-end cash and cash equivalents were ¥14,239.9m and order backlog was ¥5,362m.

• Revenue was ¥2,508m versus ¥2,523m forecast; operating loss of ¥3,070m was ¥80m worse than forecast.

Outlook and guidance

• FY2025 forecast: total revenue ¥6,113m, sales ¥2,321m, operating loss ¥4,524m, ordinary loss ¥1,473m, net loss ¥1,482m and EBITDA ¥1,242m.

• Subsidy income is forecast at ¥3.79bn, mainly from the Space Strategy Fund and METI SBIR; recognition timing depends partly on a grant decision.

• Government agencies are expected to account for ~75% of FY2025 sales; over 90% of that portion is contracted or continuing from FY2024.

• Two satellite launches are planned in H2 2025, with six launches in 2026 and annual production capacity targeted at 12 satellites.

• Preparations for the Ministry of Defense constellation program are planned in FY2025; service provision is expected from April 2026.