Terra Drone Corporation
278A・Growth Market・Precision Instruments
Terra Drone Corporation
278A・Growth Market・Precision Instruments
Business
Terra Drone Corporation operates globally along two axes: the "Drone Solutions Segment," which provides industrial drone solutions for surveying, inspection, and agriculture, and the "Flight Operations Management Segment," which develops and builds drone traffic management systems (UTM). The company comprises 10 entities in total, including 8 consolidated subsidiaries and 1 equity-method affiliate, with bases in Japan, Indonesia, the Netherlands, Malaysia, Saudi Arabia, Belgium, the United States, and Romania, and provides services in 14 countries (as of FY2025 (ending January 2025)). In 2024, it was ranked the world's No.1 drone service company (Drone Industry Insights survey). Its major customers include construction, electric power, oil and gas, and agriculture companies, as well as government agencies and air traffic control authorities in various countries. The company listed on the Tokyo Stock Exchange Growth Market in November 2024.
Business Model
In the Drone Solutions Segment, the company generates revenue across three layers: hardware sales such as its in-house developed Terra Lidar Series, SaaS-type cloud services such as Terra Cloud, and surveying, inspection, and agrochemical spraying services. In the Flight Operations Management Segment, revenue is centered on UTM initial deployment fees (spot revenue) in addition to annual license fees and usage-based charges tied to flight frequency (recurring revenue). This structure is scalable, as usage-based revenue automatically expands with the increase in the number of drone flights.
Company Strengths
Unifly NV has a track record of providing UTM to ANSPs in Germany, Spain, Canada, Belgium, and others, and has been adopted in 10 of the 16 countries (63%) where private UTM operators have implemented and operated systems. With the enforcement of the European U-Space Regulation (2021/664), UTM implementation has become mandatory across the 27 member states, giving the company a strong first-mover advantage.
In 2024, the company was ranked No.1 in the world as a drone service company in a survey by Drone Industry Insights. Surveying services in Japan and overseas totaled over 600 projects annually (FY2025, ending January 2025), with a cumulative total of over 2,000 projects. In the inspection business, the company has completed a cumulative total of over 1,600 projects domestically and internationally, and in the agriculture business, it operates more than 150 drones covering over 200,000 hectares annually.
The proprietary Terra UT Drone (Ultrasonic Thickness Inspection Drone) is patented as the world's first drone equipped with ultrasonic flaw detection functionality (PCT/NL2018/050575, etc.). In collaboration with Mitsui O.S.K. Lines' offshore development arm (MODEC), the company obtained approval from the global classification society ABS for a drone-based thickness measurement method on FPSOs (December 2023). The company also has inspection track records at Shell's largest refinery in Europe and at BASF.
ENVALITH's Perspective
Performance Trend
Revenue maintained a moderate growth trajectory, rising from ¥4,436 million in FY2025 to ¥4,783 million in FY2026, with a full-year forecast of ¥5,073 million (+6.1%) for FY2027. Meanwhile, operating loss continued to widen, from ¥627 million in FY2025 to ¥1,144 million in FY2026, with a full-year forecast of ¥1,658 million for FY2027. In Q1 of the fiscal year ending January 2027 (February–April 2026), revenue was ¥1,010 million, operating loss was ¥434 million, and net loss attributable to owners of the parent was ¥249 million. SG&A expenses increased by ¥177 million year-on-year, with costs related to preparations for entry into the defense business and the burden of newly consolidated subsidiaries (Sora Consulting GmbH and Euro USC Netherlands) seen as the main drivers of the widening loss. As an external factor, yen appreciation is putting pressure on the yen-denominated value of overseas revenue.
Growth Strategy
Aiming to become a global platformer for the low-altitude economic zone through M&A and regional expansion
In March 2026, the company announced its entry into the defense business. It is proceeding with preparations to establish a U.S. entity, "Terra Defense," while advancing the development and deployment of interceptor drones through collaboration with a Ukrainian company. The company positions the expanding demand for unmanned systems, driven by security policy reviews in various countries, as a medium- to long-term growth field.
In Q1 FY2027 (ending January 2027), Sora Consulting GmbH and Euro USC Netherlands were newly consolidated, strengthening collaboration with EuroUSC Italia S.r.l. and expanding the European business foundation. Leveraging the enforcement of European U-Space regulations as a tailwind, the company is accelerating UTM Platform (Unifly NV)-centered deployment for governments and operators in various countries.
The company is promoting mass production and sales of its domestically produced indoor inspection drone, which obtained the world's first ABS approval. It is capturing facility inspection demand centered on the oil, gas, and chemical plant sectors, with continued progress in securing orders in Q1 FY2027 (ending January 2027).
The company is driving continued expansion of infrastructure-related surveying projects through its Saudi Arabian subsidiary, as well as capacity expansion of its agricultural drone spraying service (operating over 150 units) in Indonesia and Malaysia. In Q1 FY2027 (ending January 2027), some delays in project progress were observed in certain regions of the agricultural business.
Last updated: July 17, 2026