ispace (9348) Q1 26/27 earnings summary

Executive summary

• Strategic focus on lunar infrastructure and national security across Japan, the U.S., and Europe, leveraging partnerships, government initiatives, and a single business segment in lunar surface development.

• Mission pipeline includes M2.5 (2027), M3 (2028), M4 (2029), and M5 (2030), with significant commercial and government contracts secured, including JALUX and ESA.

• Signed key agreements with Mitsubishi Heavy Industries for launch services and SpaceX for high-capacity lunar transportation.

• Strengthened ties with Japanese and European governments, expanded U.S. business development leadership, and established a new subsidiary in Saudi Arabia.

• Received a major grant from JAXA for high-precision lunar landing technology.

Financial highlights

• Q1 FY2027/3 revenue was ¥168.7 million, down 85.5% year-over-year; operating loss ¥6.4 billion, net loss ¥6.3 billion, both significantly worse than prior year.

• Gross profit declined due to a ¥3.7 billion impairment loss related to U.S. lander model integration and engine redesign; gross loss of ¥4.6 billion.

• SG&A expenses decreased 28.5% YoY, reflecting completion of R&D phase for Mission 2 and workforce optimization.

• Liquidity remains sufficient with ¥25.7 billion in cash and deposits; net assets at ¥8.7 billion after impairment losses.

• Total assets at June 30, 2026: ¥40.9 billion; equity ratio: 20.9%.

Outlook and guidance

• Full-year FY2027/3 project revenue expected to exceed ¥9 billion, up over 50% YoY, with net sales forecast at ¥3.3 billion and net loss at ¥13.0 billion.

• Revenue recognition to ramp up in later quarters as Missions 3 and 4 progress.

• At least $283 million in contracted revenue and grants to be recognized over the next four years.

• Major grant from JAXA for up to ¥20 billion over five years to support high-precision lunar landing technology.

• No change to previously announced earnings forecast.