AeroEdge (7409) Q4 2025 earnings summary

Executive summary

• Achieved record-high revenue of ¥3,602 million (up 7.5% YoY) and net income of ¥734 million (up 5.1% YoY), driven by strong sales of titanium-aluminum blades for A320neo/LEAP engines, despite 737MAX headwinds and supply chain disruptions.

• Operating income declined 7.1% YoY to ¥655 million due to upfront costs for new projects and R&D, but remained above initial forecasts.

• Expanded long-term contracts, including a major supply agreement with Safran, increasing market share from 35% to 40% and securing business through 2034.

• Secured up to ¥2 billion in government subsidies and completed ¥3.3 billion in refinancing to support strategic investments.

• Significant capital expenditures for new plant and equipment to support mass production projects and integrated material supply.

Financial highlights

• Revenue: ¥3,602 million (+7.5% YoY); Operating income: ¥655 million (−7.1% YoY); Net income: ¥734 million (+5.1% YoY); EBITDA: ¥1,038 million (−5.0% YoY).

• Gross margin improved to 46.8% from 45.1% the previous year, driven by increased LEAP engine blade sales.

• Cash and deposits at period-end: ¥1.57 billion, down ¥239 million YoY.

• Operating cash flow: ¥1.33 billion (margin 37.0%).

• Major investments in fixed assets for new production lines and plant expansion.

Outlook and guidance

• FY2026 revenue forecasted at ¥4,930 million (+36.9% YoY), with operating income at ¥810 million (+23.6% YoY) and EBITDA at ¥1,382 million (+33.2% YoY).

• Net income expected to decrease to ¥500 million due to higher tax expenses following prior-year deferred tax asset recognition.

• Engine units with company blades expected to rise 27.5% in FY2026 and 45–55% in FY2027.

• Anticipates robust demand for A320neo, 737MAX, and LEAP engines, with production ramp-ups and new material supply contracts contributing to growth.

• Ongoing investments in R&D, new materials, and production capacity to support future growth.