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QPS Holdings Posts First Profit as Defense Satellite Contract and ¥15.2bn Raise Fund Its Constellation Build-Out

Japan's radar-satellite maker QPS Holdings posted a ¥1.15bn net profit in its debut year, aided by a Ministry of Defense contract worth up to ¥69.7bn and a ¥15.2bn share placement to fund its satellite constellation expansion.

Aug 26, 20262 min readQPS Holdings Inc.464A

QPS Holdings closed its first year as a listed holding company with a net profit, even though the underlying satellite business still lost money on an operating basis. Consolidated net sales for the year to May 31, 2026 reached ¥3.80bn, but rising depreciation from a growing satellite fleet pushed the group to an operating loss of ¥833mn. Subsidy income of roughly ¥1.73bn and other non-operating items turned that into an ordinary profit of ¥1.17bn and a net profit attributable to shareholders of ¥1.15bn.

QPS Holdings: first-year consolidated results
Fiscal year ended May 31, 2026; first period as a holding company, no prior-year comparison available.
MetricAmount
Net sales¥3.80bn
Operating loss¥833mn
Ordinary profit¥1.17bn
Net profit attributable to parent¥1.15bn
Total assets¥42.46bn
Net assets¥31.68bn
Cash and cash equivalents¥8.25bn

The period is the company's first as QPS Holdings, formed on December 1, 2025 when its satellite-building subsidiary spun into a holding structure through a sole share transfer. Because the holding company did not exist before that date, the securities report carries no year-over-year comparison.

A defense contract worth up to ¥69.7bn

Separately, the operating subsidiary signed a three-way contract in February 2026 with a co-contracting partner firm and Sky Perfect JSAT to supply image data under the Ministry of Defense's satellite constellation development and operations programme, with projected sales of up to ¥69.7bn running through March 2031. Government agencies already accounted for 56.1% of the year's sales, and that same partner firm alone contributed ¥1.17bn, or 30.7%.

Financing the build-out

The company also raised ¥15.2bn in March 2026 through a third-party share placement to Sky Perfect JSAT, Mitsuuroko Group Holdings and Mitsui Sumitomo Insurance, and secured a ¥6.2bn syndicated loan commitment arranged by Mizuho Bank, of which ¥1.0bn had been drawn by year-end. Japan's space agency has separately raised the support ceiling under its Space Strategy Fund programme to ¥21.24bn for the satellite-manufacturing push, a figure that includes the initial ¥8.47bn tranche already disclosed.

The money is meant to fund a build-out from the nine radar satellites in orbit at fiscal year-end toward 24 by the year to May 2028 and more than 36 by 2030, the scale the company says it needs to observe most populated regions of Earth roughly every ten minutes. The filing flagged, then dismissed, a note of material uncertainty about the group's ability to continue as a going concern, pointing to the syndicated loan, the equity placement and cash and deposits of ¥21.25bn at year-end as grounds for its conclusion that no such uncertainty remained.