AeroEdge (7409) Q4 2026 earnings summary

Executive summary

• Achieved record-high revenue of ¥5,084 million, up 41.2% year-over-year, and record operating profit of ¥1,145 million, up 74.8% year-over-year; net income attributable to shareholders reached ¥781 million, a 6.3% increase year-over-year.

• Transitioned to consolidated financial statements, including the full acquisition of Ono Plant, expanding into aircraft body parts and defense sectors.

• Strong demand for A320neo and 737MAX/LEAP engine titanium aluminide blades drove growth, with 847 engines supplied (up 32.6% year-over-year); new material development and contract wins supported expansion.

• Significant investments made in new materials, production capacity, and integration of Ono Plant.

• Secured ¥3.8 billion in new loans to fund growth and executed stock splits to improve liquidity.

Financial highlights

• EBITDA reached a record ¥1,562 million, up 50.5% year-over-year; operating margin was 22.5%, net margin 15.4%, and ROE 16.3%.

• Gross margin was 45.4% (gross profit ¥2,308 million on sales of ¥5,084 million).

• Cash and deposits increased to ¥2,628 million; net debt-to-equity ratio at 0.6x; equity ratio stood at 39.1% with total assets of ¥12,261 million.

• Operating cash flow was ¥2,959 million, with a margin of 58.2% (including subsidies); investing activities used ¥3,217 million, mainly for equipment and acquisition.

Outlook and guidance

• FY2027 revenue forecasted at ¥7,950 million (+56.4% YoY), operating profit at ¥1,550 million (+35.3% YoY), and net income at ¥960 million (+22.9% YoY).

• Titanium aluminide/LEAP engine blade sales expected to rise 28% in engine units, with market share increasing to the high 40% range.

• Continued investment in capacity, R&D, and personnel to support new materials and market expansion.