Despite a communications failure in Axelspace Holdings Corporation's satellite business, the company has a massive order backlog, including an engineering imagery contract with the Ministry of Defense. The focus going forward will be on determining the cause of the failure and the feasibility of its sales plan.
Axelspace Holdings Corporation's share price fell sharply from the 20 August 2025 closing price of ¥977 to the 2 October 2026 closing price of ¥321, a decline of approximately 67.1%. The background includes a satellite communications failure and a downward revision to the earnings forecast for the fiscal year ended May 2026. This undermined confidence in the company's future growth scenario.
The company's revenue pillars are AxelLiner, which designs and operates dedicated satellites for customers and accounts for approximately 61%, and AxelGlobe, which sells data obtained from satellites launched by the company and accounts for approximately 39%. The company is pursuing business development in space rather than remaining merely a manufacturer.
However, a communications failure occurred on GRUS3, launched in July, raising questions about the feasibility of plans covering 3 fiscal periods. This undermined the growth assumptions and became a factor in the significant loss of investor expectations following the listing.
Meanwhile, the Ministry of Defense's contract for the provision of engineering imagery is substantial at ¥43.6 billion, and the current order backlog exceeds ¥53.375 billion. Going forward, the focus for investment decisions will be on determining the cause of the failure, progress in converting the order backlog into sales, and the profitability of satellite operations.