AeroEdge Co., Ltd.
7409・Growth Market・Transportation Equipment
Business
AeroEdge Co., Ltd. is an aircraft engine parts processing manufacturer founded in 2015 in Ashikaga City, Tochigi Prefecture. Its core business is the mass-production processing and sale of Titanium Aluminide Low-Pressure Turbine Blades (for LEAP) installed in the "LEAP" engine used in the France-based Airbus A320neo family and the US-based Boeing 737MAX. Its main customer is France-based Safran Aircraft Engines (96.8% of net sales). Titanium aluminide blades are extremely difficult to process, and globally only two companies, including AeroEdge, are capable of mass-production supply. The company listed on the Tokyo Stock Exchange Growth Market in July 2023. It operates under a single segment, the Processing Business, and recorded net sales of ¥3,602 million in FY2025 (ended June 2025).
Business Model
Since titanium aluminide alloy, the main raw material, is supplied free of charge by SAFRAN (France), the Company's variable costs are centered on processing costs. This gives the business a high operating leverage structure in which profit margins rise as sales increase. The gross profit margin for FY2025 (ended June 2025) was 46.8%. Unit selling prices are, in principle, fixed under contract, with adjustments triggered only when a certain foreign exchange rate range is exceeded. Under the long-term supply agreement updated in October 2024 (running through the end of 2034), market share has expanded from 35% to 40%, with further expansion to the high-40% range planned from January 2028 onward.
Company Strengths
Titanium aluminide blades are hard, brittle intermetallic compounds, making mass-production processing extremely difficult. Only two companies in the world are capable of mass-producing and supplying titanium aluminide blades for LEAP. The Company holds process design, tool development, processing technology, quality management, and special processes (Nadcap certification) all in-house on an integrated basis, and this high barrier to entry is the source of its competitive advantage.
In October 2024, the Company renewed its long-term supply agreement with Safran Aircraft Engines of France through the end of December 2034. The market share was expanded from 35% to 40%, with further expansion to the high-40% range planned from January 2028 onward. The high order backlog for LEAP-equipped aircraft (7,251 units for the A320neo family and 5,415 units for the 737MAX) is enhancing the visibility of medium- to long-term demand.
Since the main raw material, titanium aluminide alloy, is supplied free of charge by customers, the Company's variable cost ratio is kept low. The gross profit margin for FY2025 (ended June 2025) improved year on year to 46.8%. In phases of sales expansion, the business model is such that revenue growth accompanying increased LEAP engine production translates directly into expanded profit.
ENVALITH's Perspective
Performance Trend
Revenue has continued on an increasing trend from ¥2,921 million in FY2023 to ¥3,350 million in FY2024 to ¥3,602 million in FY2025, and in the cumulative nine months of Q3 FY2026 (ending June 2026), revenue already reached ¥3,775 million, up +36.0% year-on-year, marking a substantial acceleration in growth. Operating profit also rose +67.9% year-on-year to ¥1,007 million, already exceeding the full prior-year result (¥655 million in FY2025). In terms of market conditions, the sustained high level of the order backlog for aircraft equipped with LEAP engines (7,400 units for the A320neo, 5,388 units for the 737MAX) and the recovery in passenger demand are supporting demand expansion. The number of engines sold with the New Titanium Aluminide Blade Material reached 630 units (up +29.9% year-on-year). The full-year forecast (revenue of ¥5,050 million, operating profit of ¥1,070 million) remains unchanged from the previous forecast.
Growth Strategy
Pursuing revenue diversification along three axes: LEAP share expansion, vertical integration of new materials, and new engine parts projects
To eliminate the supply risk of depending on a single European material supplier, the company has reached the point of mass production readiness for a self-developed new material, and has concluded a new material supply and share expansion agreement with SAFRAN. Mass production supply will begin in phases from the following fiscal year, with share expected to expand from the current 40% to the high 40% range starting in 2028. Construction of a laboratory building and mass-production plant for the new material is underway.
As aircraft manufacturers ramp up production against a backdrop of a high order backlog, the company is advancing capital investment aimed at strengthening production capacity in order to capture market share expansion. Construction in progress as of the end of March 2026 stood at ¥972 million, approximately 4.5 times the level at the end of the previous fiscal year end, indicating that investment is gaining full momentum.
Mass-production launch of two aircraft engine parts, different from the LEAP engine, is being advanced in parallel at the new plant completed in 2024. Preparations are underway toward starting mass production during the current fiscal year, and if realized, this would contribute to reducing dependence on specific customers and products and to diversifying revenue.
Last updated: July 17, 2026