ENVALITH
株式会社アストロスケールホールディングス logo

Astroscale Holdings Inc.

186A・Growth Market・Services

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株式会社アストロスケールホールディングス logo
Astroscale Holdings Inc.186A

Business

Astroscale Holdings is a Japan-originated global company specializing exclusively in On-Orbit Servicing in outer space. The company has developed in-house its core technology of RPO (Rendezvous and Proximity Operations) for non-cooperative objects, and offers four services: observation and inspection of malfunctioning satellites and objects (ISSA), life extension and refueling (LEX), removal of existing debris (ADR), and prevention of debris generation at end-of-life for satellites (EOL). It has bases in Japan, the UK, the US, France, and Israel, with its main customers being government and defense agencies of major countries such as JAXA, ESA, the US Space Force, the UK Ministry of Defence, and Japan's Ministry of Defense. The company listed on the Tokyo Stock Exchange Growth Market in June 2024. It is a technology-intensive company, with engineers comprising approximately 70% of its employees.

Business Model

The majority of revenue consists of milestone income based on R&D and demonstration project contracts with government and defense agencies. Under this structure, consideration is paid conditional on passing reviews tied to technology development progress. The company manages project revenue—sales revenue plus government subsidy income—as its substantive performance indicator. Over the medium to long term, the company envisions a strategy of building up fee-based commercial revenue through expansion into EOL (End-of-Life Debris Prevention Service) for private constellation operators and LEX (Life Extension & Refueling Service) for geostationary satellites.

Company Strengths

Achieved the world's first debris capture demonstration by a private company using ELSA-d (2021) and the world's first approach to within approximately 15m of actual debris using ADRAS-J (2024–2025). As explicitly stated in the Annual Securities Report as of June 2025, the company is not aware of any competitor that has successfully demonstrated RPO technology for non-cooperative objects in space, establishing a technological first-mover advantage.

Total orders received for the fiscal year ended April 2025 amounted to ¥30,704 million (up 452.0% year-on-year), with a total order backlog of ¥29,695 million (up 545.6% year-on-year). Orders have been accumulated concurrently from government and defense agencies in multiple countries, including JAXA, the U.S. Space Force, the UK Ministry of Defence, Japan's Ministry of Defense, and ESA, and the combined total including expected order backlog reaches ¥44,413 million.

The company has signed Docking Plate installation agreements with multiple satellite operators, including Eutelsat OneWeb, Astro Digital, and Airbus Constellations Satellites SAS (orders exceeding 100 units). As of the filing date of this document, 571 satellites equipped with Docking Plates are in orbit, indicating that an ecosystem for the commercialization of the EOL (End-of-Life Debris Prevention Service) has already been built ahead of schedule.

ENVALITH's Perspective

For FY2026 (ending April 2026), revenue was ¥5,940 million (up 141.8% year on year), operating loss was ¥9,975 million (a significant reduction from ¥18,755 million in the previous period), and net loss for the period was ¥7,115 million (versus ¥21,552 million in the previous period), indicating a marked improvement in the profit and loss structure. Gross profit also turned positive for the first time. It should be noted that foreign exchange gains of ¥3,651 million, an external factor, contributed to the reduction in pre-tax loss; nonetheless, the substantial expansion of revenue reflects genuine business progress.

Cash and cash equivalents at period-end stood at ¥10,022 million (down ¥11,279 million from ¥21,301 million in the previous period). A net loss of ¥9,600 million to ¥10,600 million is also forecast for FY2027 (ending April 2027), meaning cash consumption is expected to continue. As a subsequent event, in June 2026 the company issued convertible bonds of ¥16,300 million to Hulic, overseas convertible bonds of ¥10,000 million, and third-party allotment capital increases totaling over ¥4,300 million, securing liquidity; however, potential dilution of up to 11,911,231 shares at a conversion price of ¥2,208 could act as a factor suppressing upside in the share price.

In terms of the market environment, major nations are all revising their space defense strategies—including the US Space Force's FOE 2040, the UK's SDR 2025, Europe's €800 billion-scale strategy document, and France's national space strategy—suggesting that medium- to long-term demand expansion can be expected. On the other hand, the order backlog at the end of April 2026 declined to ¥37,938 million (down 14.6% year on year), and orders received during the period also fell sharply by 72.5% year on year to ¥8,445 million. The FY2027 (ending April 2027) earnings forecast is composed solely of already-contracted projects, meaning the pace of new order acquisition will determine whether the earnings forecast can be revised upward.

Growth Strategy

Early profitability through the transition to a repeat-order project model and the capture of defense and private-sector demand

Through "repeat-order projects" that reuse previously developed platforms without major modification, the company suppresses new development costs on a per-project basis. Long-term targets are a gross margin in the mid-30% range and an operating margin in the mid-20% range, pursued through raising the ratio of fully funded projects and improving project mix. In FY2026 (ending April 2026), gross profit turned positive for the first time, confirming initial results.

The company has secured multiple contracts with defense agencies, including the US Air Force Research Laboratory, Japan's Ministry of Defense, and selection as a candidate under the US MDA SHIELD IDIQ. Against the backdrop of major nations reviewing their space defense strategies, defense-related projects are positioned as a key pathway for generating repeat-order projects. Acceleration of project awards is expected from 2026 onward.

The company is progressing in parallel on ELSA-M (CDR completed; launch contract signed with Isar Aerospace), APS-R (launch planned during FY2027, ending April 2027), Orpheus (CDR completed; launch planned during FY2028–FY2029, ending April 2028–April 2029), and ISSA-J1 (launch contract signed for PSLV), among others. Successful launch and demonstration of each mission is key to securing next-phase orders and establishing the repeat-order model.

In June 2026, the company implemented ¥16,300 million in convertible bonds allocated to Hulic, ¥10,000 million in overseas convertible bonds, a ¥3,500 million third-party allotment to Hulic, and a ¥800 million third-party allotment to SKY Perfect JSAT. The proceeds are to be allocated to expanding production facilities, satellite manufacturing investment, and working capital. Tangible fixed assets surged from ¥6,025 million in the previous fiscal year to ¥11,063 million, reflecting ongoing manufacturing capacity expansion.

The company has secured multiple commercial contracts for its second-generation Docking Plate from customers including Xona Space Systems, reaching a cumulative total of over 1,000 units scheduled for launch. Through a strategic partnership and a satellite deorbit mission development contract signed with France's Exotrail (targeting a first commercial mission by 2030), expansion into the European private-sector market is also accelerating.

Last updated: July 17, 2026