Worth reading
80Important
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
68.9
Year-on-year change (%) in revenueWording
Conditional
How definitive the wording is.Contents of this document
Financial Results PresentationSecond quarter of the fiscal year ending December 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,648 Millions of yen+68.9%
Operating profit¥-375 millions +378.0%accounting operating income/loss
Ordinary income-361 Millions of yen-316.0%
Net income¥-358 millions -87.0%net income/loss attributable to owners of the parent
Gross Profit Margin33.2 %
Selling, general and administrative expenses¥703 millions excluding SBIR
Results for the three months of the current quarter
Net Sales
1,028 Millions of yen
North American net sales
848 Millions of yen
Defense revenue
0 Hundreds of millions of yen
Full-year earnings forecast
Net Sales
4,000 Millions of yen
Gross profit
1,100 Millions of yen
Gross Profit Margin
27.5 %
Selling, general and administrative expenses excluding SBIR
1,860 Millions of yen
Operating income/loss excluding SBIR
-760 Millions of yen
SBIR costs
600 Millions of yen
Accounting operating income/loss
-1,360 Millions of yen
Ordinary profit or loss
-950 Millions of yen
Net income/loss attributable to owners of the parent
-600 Millions of yen
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。
Net Sales41.2%
Revenue (cumulative revenue + order backlog)Approximately 74%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Above the Q2 guidelineKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Reason for leaving the full-year revenue forecast of ¥4 billion unchanged: the forecast was maintained in light of the order backlog, domestic defense projects, expanded North American sales, and the concentration of revenue in the second half.
- Sustainability of the gross margin: the full-year forecast is 27.5%, as fluctuations related to the project mix are expected in the second half.
- North American business: expand sales against a backdrop of replacement demand for Chinese-made drones, and promote expansion in Canada through collaboration with Draganfly.
- Inclusion on the Chinese Ministry of Commerce's watch list: strengthen the supply chain through alternative sourcing, alternative components, and design changes.
- Achieving profitability: aim to achieve operating profitability, excluding national projects, at revenue of ¥5 billion or more.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Increase in gross profit
4.6 Hundreds of millions of yen
Increase in SG&A expenses
-1 Hundreds of millions of yen
SBIR costs
-2.2 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rateBased on ¥150 per US dollar (orders received)
Second-half assumptionsPromote expanded sales in North America and the delivery and recognition of revenue from defense projects
New initiatives
- Strengthen the Canadian sales network through collaboration with Draganfly
- Develop AI-enabled autonomous and distributed control technologies through collaboration with Preferred Networks
- Develop and mass-produce next-generation compact aerial photography drones
- Strengthen the supply chain through alternative sourcing, adoption of alternative components, and design changes
Key KPIsA metric the company considers important as a management benchmark.
- Contribution margin7.4 Hundreds of millions of yenYear on year against the same period last year¥210 million in the prior-year period
- Contribution margin45.5 %Year on year against the same period last year+23.9pt
- Orders received as of Q2-end13.1 Hundreds of millions of yenYear on year against the same period last year+approximately 18%
- Cash and deposits28.8 Hundreds of millions of yenYear on year against the same period last year+59%
- Sell-through (Q2 standalone)11.6 timesYear on year against the same period last year11.6x
- Sell-through (first-half cumulative)7.7 timesYear on year against the same period last year7.7x
Segment results
North America
Net Sales
10.1 Hundreds of millions of yen
Year on year against the same period last yearApproximately 24x the prior-year period
Order backlog
2.2 Hundreds of millions of yen
Defense
Net Sales
2.3 Hundreds of millions of yen
Year on year against the same period last year¥420 million in the prior-year period
Medium-term management plan targets
North America
Target value25 Hundreds of millions of yen
Target fiscal yearFY28
Defense
Target value15 Hundreds of millions of yen
Target fiscal yearFY28
Infrastructure
Target value10 Hundreds of millions of yen
Target fiscal yearFY28
Operating profit excluding the government projectAchieve profitability at revenue of ¥5 billion or more
Contribution margin40% or more
Market Size / Share
Japanese drone airframe market size
20231,051 Hundreds of millions of yen
20282,281 Hundreds of millions of yen
US drone airframe market size
2023$53 100 million
2028$82 100 million
Sales agency network
Domestic15 or more
United States20 or more companies
Orders received and order backlog
Order backlog
13.1 Hundreds of millions of yen
Q2 cumulative revenue + order backlog
29.6 Hundreds of millions of yen
Large FY26 order received from the Ministry of Defense
10 Hundreds of millions of yen
Number of employees
Number of Employees64 people
Reference dateAs of June 2026, on a consolidated basis
| Item | Details |
|---|---|
| Document type | Financial Results Presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending December 2026 |
| Net Sales | 1,648 Millions of yen (YoY +68.9%) |
| Operating profit | ¥-375 millions (accounting operating income/loss) (YoY +378.0%) |
| Ordinary income | -361 Millions of yen (YoY -316.0%) |
| Net income | ¥-358 millions (net income/loss attributable to owners of the parent) (YoY -87.0%) |
| Gross Profit Margin | 33.2 % |
| Selling, general and administrative expenses | ¥703 millions (excluding SBIR) |
| Results for the three months of the current quarter | Net Sales 1,028 Millions of yen / North American net sales 848 Millions of yen / Defense revenue 0 Hundreds of millions of yen |
| Full-year earnings forecast | Net Sales 4,000 Millions of yen / Gross profit 1,100 Millions of yen / Gross Profit Margin 27.5 % / Selling, general and administrative expenses excluding SBIR 1,860 Millions of yen / Operating income/loss excluding SBIR -760 Millions of yen / SBIR costs 600 Millions of yen / Accounting operating income/loss -1,360 Millions of yen / Ordinary profit or loss -950 Millions of yen / Net income/loss attributable to owners of the parent -600 Millions of yen |
| Progress against full-year forecast | Net Sales 41.2% / Revenue (cumulative revenue + order backlog) Approximately 74% |
| Self-assessment against the plan | Above the Q2 guideline |
| Segment results | North America Net Sales 10.1 Hundreds of millions of yen / Year on year against the same period last year Approximately 24x the prior-year period / Order backlog 2.2 Hundreds of millions of yen / Defense Net Sales 2.3 Hundreds of millions of yen / Year on year against the same period last year ¥420 million in the prior-year period / Infrastructure Not disclosed / Other Not disclosed |
| Breakdown of Factors Affecting the Change | Increase in gross profit 4.6 Hundreds of millions of yen / Increase in SG&A expenses -1 Hundreds of millions of yen / SBIR costs -2.2 Hundreds of millions of yen |
| Key KPIs | Indicator name Contribution margin / Value 7.4 Hundreds of millions of yen / Year on year against the same period last year ¥210 million in the prior-year period, Indicator name Contribution margin / Value 45.5 % / Year on year against the same period last year +23.9pt, Indicator name Orders received as of Q2-end / Value 13.1 Hundreds of millions of yen / Year on year against the same period last year +approximately 18%, Indicator name Cash and deposits / Value 28.8 Hundreds of millions of yen / Year on year against the same period last year +59%, Indicator name Sell-through (Q2 standalone) / Value 11.6 times / Year on year against the same period last year 11.6x, Indicator name Sell-through (first-half cumulative) / Value 7.7 times / Year on year against the same period last year 7.7x |
| Number of employees | Number of Employees 64 people / Reference date As of June 2026, on a consolidated basis / Change during the period Not disclosed / Hiring plan Not disclosed |
| Assumptions Underlying the Business Outlook | Exchange rate Based on ¥150 per US dollar (orders received) / Second-half assumptions Promote expanded sales in North America and the delivery and recognition of revenue from defense projects |
| Medium-term management plan targets | North America Target value 25 Hundreds of millions of yen / Target fiscal year FY28 / Defense Target value 15 Hundreds of millions of yen / Target fiscal year FY28 / Infrastructure Target value 10 Hundreds of millions of yen / Target fiscal year FY28 / Operating profit excluding the government project Achieve profitability at revenue of ¥5 billion or more / Contribution margin 40% or more |
| Orders received and order backlog | Order backlog 13.1 Hundreds of millions of yen / Q2 cumulative revenue + order backlog 29.6 Hundreds of millions of yen / Large FY26 order received from the Ministry of Defense 10 Hundreds of millions of yen |
| Market Size / Share | Japanese drone airframe market size 2023 1,051 Hundreds of millions of yen / 2028 2,281 Hundreds of millions of yen / US drone airframe market size 2023 $53 100 million / 2028 $82 100 million / Sales agency network Domestic 15 or more / United States 20 or more companies |
| Key points of the Q&A | Reason for leaving the full-year revenue forecast of ¥4 billion unchanged: the forecast was maintained in light of the order backlog, domestic defense projects, expanded North American sales, and the concentration of revenue in the second half., Sustainability of the gross margin: the full-year forecast is 27.5%, as fluctuations related to the project mix are expected in the second half., North American business: expand sales against a backdrop of replacement demand for Chinese-made drones, and promote expansion in Canada through collaboration with Draganfly., Inclusion on the Chinese Ministry of Commerce's watch list: strengthen the supply chain through alternative sourcing, alternative components, and design changes., Achieving profitability: aim to achieve operating profitability, excluding national projects, at revenue of ¥5 billion or more. |
| New initiatives | Strengthen the Canadian sales network through collaboration with Draganfly, Develop AI-enabled autonomous and distributed control technologies through collaboration with Preferred Networks, Develop and mass-produce next-generation compact aerial photography drones, Strengthen the supply chain through alternative sourcing, adoption of alternative components, and design changes |
Items this document does not state (9)
Operating profit marginUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expenditures
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.Growth in sales of airframes to North America drove the increase in revenue, while profitability improved as a result of a better product mix and cost reductions. The full-year forecast was revised to reflect improved profitability, the inclusion of growth investment and supply-chain strengthening costs, a review of the timing of revenue recognition for national project subsidies, and the recording of a ¥396 million gain on the sale of investment securities.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.