Worth reading
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Mixed performance
Direction inferred from the company’s description.Scale
63
¥ millionWording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFirst quarter of the fiscal year ending January 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,010 million
Operating profit¥-434 million
Ordinary income¥-325 million
Net income¥-249 million net income attributable to owners of the parent
Gross Profit MarginConsolidated: not disclosed. Drone Solutions: 45% (43% in the same quarter of the previous year, +2 percentage points); Surveying and Disaster Recovery: 47% (50%, -3 percentage points); Inspection: 52% (51%, +1 percentage point); Agriculture: 24% (8%, +16 percentage points)
Selling, general and administrative expensesThe factors behind the increase are stated, but the amount of consolidated SG&A expenses and the SG&A-to-net-sales ratio are not disclosed
Results for the three months of the current quarterNet sales, profit and segment results for the three months of the first quarter are stated
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。The numerical progress rate is not disclosed. The presentation states that net sales in the first and second quarters will account for a relatively small proportion of the full-year total
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing as initially expectedBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Drone Solutions operating profit: gross profit from Surveying and Disaster Recovery, down ¥42 million; gross profit from Inspection, up ¥26 million; gross profit from Agriculture, up ¥15 million; increase in SG&A expenses (shown in the chart)
- Flight Operations Management adjusted operating profit: change in Unifly's operating profit, down ¥59 million; change in domestic operating profit, up ¥22 million; change in subsidies, down ¥124 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- EUR/JPY exchange rate: forecast ¥180, first-quarter actual ¥183.65
- USD/JPY exchange rate: forecast ¥155, first-quarter actual ¥156.86
- IDR/JPY exchange rate: forecast ¥0.0092, first-quarter actual ¥0.0093
- SAR/JPY exchange rate: forecast ¥40, first-quarter actual ¥41.90
- MYR/JPY exchange rate: forecast ¥38, first-quarter actual ¥39.57
New initiatives
- Full-scale entry into the defense equipment market and expansion of the defense drone product lineup
- Conversion of Amazing Drones LLC and WinnyLab LLC into subsidiaries
- Preparations to establish a joint venture with Besomar in Ukraine
- Announcement of Terra C1, a reconnaissance drone
- Partnership agreement with MBDA to implement a counter-drone platform
- Order for 300 modular UAVs from the Acquisition, Technology & Logistics Agency
- Raising approximately ¥14.5 billion through the issuance of share acquisition rights, with proceeds allocated to defense, UTM, M&A and other areas
Key KPIsA metric the company considers important as a management benchmark.
- Military UAV market size¥2.37 trillion in 2025 and ¥3.4215 trillion in 2030Year on year against the same period last yearCAGR 7.6%
- Domestic defense budget related to unmanned assets¥277.3 billion in FY2026Year on year against the same period last yearApproximately 2.4x
- Number of countries with distributor agreements for Terra Xross 18 countries
- Number of modular UAVs ordered by the Acquisition, Technology & Logistics Agency300 Units
- Maximum flight time of Terra C13 Time
- Operating radius of Terra C150〜110
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Not disclosed. The number of users, number of service customers and unit prices disclosed in prior years are no longer included from the current fiscal yearSegment results
- Drone SolutionsNet Sales¥848 million (down ¥37 million year on year)Operating profitOperating loss of ¥235 million (loss widened by ¥115 million year on year)
- Operations managementNet Sales¥161 million (up ¥100 million year on year)Operating profitOperating loss of ¥199 million (loss widened by ¥37 million year on year)Adjusted operating profitAdjusted operating loss of ¥165 million (loss widened by ¥160 million year on year)
Market Size / Share
- Global military UAV market: approximately ¥3.4 trillion in 2030, CAGR of 7.6%
- Domestic defense budget related to unmanned assets: ¥277.3 billion in FY2026, approximately 2.4 times the previous year
- Addressable market for Terra Xross 1: at least several billion yen
- The company states that it holds the global No. 1 position in terms of UTM implementation track record
Orders received and order backlog
- Saudi Arabian oil and gas pipeline monitoring project: approximately ¥406 million, one-year term
- Acquisition, Technology & Logistics Agency modular UAVs: approximately ¥115 million, 300 units
- Malaysia nationwide UTM project: amount not disclosed
Number of employees
Not disclosed. Recruitment is mentioned as a future initiative| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending January 2027 |
| Net Sales | ¥1,010 million |
| Operating profit | ¥-434 million |
| Ordinary income | ¥-325 million |
| Net income | ¥-249 million (net income attributable to owners of the parent) |
| Gross Profit Margin | Consolidated: not disclosed. Drone Solutions: 45% (43% in the same quarter of the previous year, +2 percentage points); Surveying and Disaster Recovery: 47% (50%, -3 percentage points); Inspection: 52% (51%, +1 percentage point); Agriculture: 24% (8%, +16 percentage points) |
| Selling, general and administrative expenses | The factors behind the increase are stated, but the amount of consolidated SG&A expenses and the SG&A-to-net-sales ratio are not disclosed |
| Results for the three months of the current quarter | Net sales, profit and segment results for the three months of the first quarter are stated |
| Progress against full-year forecast | The numerical progress rate is not disclosed. The presentation states that net sales in the first and second quarters will account for a relatively small proportion of the full-year total |
| Self-assessment against the plan | Progressing as initially expected |
| Segment results | Segment Drone Solutions / Net Sales ¥848 million (down ¥37 million year on year) / Operating profit Operating loss of ¥235 million (loss widened by ¥115 million year on year), Segment Operations management / Net Sales ¥161 million (up ¥100 million year on year) / Operating profit Operating loss of ¥199 million (loss widened by ¥37 million year on year) / Adjusted operating profit Adjusted operating loss of ¥165 million (loss widened by ¥160 million year on year) |
| Breakdown of Factors Affecting the Change | Drone Solutions operating profit: gross profit from Surveying and Disaster Recovery, down ¥42 million; gross profit from Inspection, up ¥26 million; gross profit from Agriculture, up ¥15 million; increase in SG&A expenses (shown in the chart), Flight Operations Management adjusted operating profit: change in Unifly's operating profit, down ¥59 million; change in domestic operating profit, up ¥22 million; change in subsidies, down ¥124 million |
| Key KPIs | Indicator Military UAV market size / Value ¥2.37 trillion in 2025 and ¥3.4215 trillion in 2030 / Year on year against the same period last year CAGR 7.6%, Indicator Domestic defense budget related to unmanned assets / Value ¥277.3 billion in FY2026 / Year on year against the same period last year Approximately 2.4x, Indicator Number of countries with distributor agreements for Terra Xross 1 / Value 8 countries / Year on year against the same period last year Not disclosed, Indicator Number of modular UAVs ordered by the Acquisition, Technology & Logistics Agency / Value 300 Units / Year on year against the same period last year Not disclosed, Indicator Maximum flight time of Terra C1 / Value 3 Time / Year on year against the same period last year Not disclosed, Indicator Operating radius of Terra C1 / Value 50〜110 / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Not disclosed. The number of users, number of service customers and unit prices disclosed in prior years are no longer included from the current fiscal year |
| Number of employees | Not disclosed. Recruitment is mentioned as a future initiative |
| Assumptions Underlying the Business Outlook | EUR/JPY exchange rate: forecast ¥180, first-quarter actual ¥183.65, USD/JPY exchange rate: forecast ¥155, first-quarter actual ¥156.86, IDR/JPY exchange rate: forecast ¥0.0092, first-quarter actual ¥0.0093, SAR/JPY exchange rate: forecast ¥40, first-quarter actual ¥41.90, MYR/JPY exchange rate: forecast ¥38, first-quarter actual ¥39.57 |
| Orders received and order backlog | Saudi Arabian oil and gas pipeline monitoring project: approximately ¥406 million, one-year term, Acquisition, Technology & Logistics Agency modular UAVs: approximately ¥115 million, 300 units, Malaysia nationwide UTM project: amount not disclosed |
| Market Size / Share | Global military UAV market: approximately ¥3.4 trillion in 2030, CAGR of 7.6%, Domestic defense budget related to unmanned assets: ¥277.3 billion in FY2026, approximately 2.4 times the previous year, Addressable market for Terra Xross 1: at least several billion yen, The company states that it holds the global No. 1 position in terms of UTM implementation track record |
| New initiatives | Full-scale entry into the defense equipment market and expansion of the defense drone product lineup, Conversion of Amazing Drones LLC and WinnyLab LLC into subsidiaries, Preparations to establish a joint venture with Besomar in Ukraine, Announcement of Terra C1, a reconnaissance drone, Partnership agreement with MBDA to implement a counter-drone platform, Order for 300 modular UAVs from the Acquisition, Technology & Logistics Agency, Raising approximately ¥14.5 billion through the issuance of share acquisition rights, with proceeds allocated to defense, UTM, M&A and other areas |
Items this document does not state (11)
Operating profit marginFull-year earnings forecastNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The increase in net sales was attributable to higher revenue from flight operations management. The wider operating loss was due to higher SG&A expenses, including increased SG&A expenses accompanying the expansion of the operating structure in Drone Solutions, the impact of foreign-exchange movements and localized cost increases in flight operations management, and the strengthening of the operating structure to reinforce the defense business.
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