Terra Drone announced its consolidated financial results for the February-July 2026 period, reporting a net loss of ¥680 million. The company cited higher selling, general and administrative expenses accompanying the expansion of its defense business and a decline in subsidy income as factors behind the loss.
Terra Drone reported net sales of ¥2.2 billion, up approximately 15% year on year. Growth in sales of surveying and inspection drones contributed to the increase, but the net loss widened to ¥680 million.
Consolidated net sales for the fiscal year ending January 2027 are expected to rise 6% from the previous fiscal year to ¥5.0 billion. Meanwhile, the company expects a net loss of ¥1.2 billion, with losses projected to continue.
At a briefing, Terra Drone announced plans to make a Ukrainian company engaged in interceptor drones a consolidated subsidiary and disclosed that it was developing in-house a flight controller for controlling drone operations. The company also outlined plans to expand its range of defense drones and increase domestic production of components.
The company also announced that it had canceled plans to establish a joint venture with Ukrainian company ベソマー, which develops reconnaissance drones. It said the parties had been unable to agree on investment terms and other conditions.