GRID Inc. (5582) FY2026 Earnings Deep Dive Report

1. FY2026 Full-Year Earnings Overview: Significant Revenue Growth and Plan Achievement

GRID Inc.'s performance for the fiscal year ended June 2026 resulted in net sales of 3,119 million yen (+51.2% YoY) , operating profit of 459 million yen (+7.3% YoY) , ordinary profit of 466 million yen (+8.9% YoY) , and net profit of 345 million yen (+15.7% YoY) . The company achieved substantial revenue growth, exceeding its initial full-year forecasts (net sales of 3,100 million yen, operating profit of 450 million yen).

This strong performance was driven by steady growth in the core "AI Business" and the successful ramp-up of the "Infrastructure Asset Business (Energy Storage Development)," which began in earnest in Q4 of the previous fiscal year. Despite increased upfront investments in head office relocation, personnel costs, and outsourcing, the company successfully absorbed these expenses through revenue growth and improved productivity, securing year-on-year increases across all profit levels.

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2. Financial Performance and Segment Restructuring

Transition to a "Two-Segment Structure" Following the Ramp-up of Energy Storage Development

A major change this fiscal year was the revision of business segments . As the revenue ratio of energy storage development—previously categorized under the "Energy Management Domain" within the AI Business—exceeded 20% of total company sales, the company transitioned to a two-segment disclosure structure: "AI Business" and **"Infrastructure Asset Business."

• ** AI Business **: Net sales of 2,362 million yen (+17.9% YoY), segment profit of 848 million yen (+12.5% YoY), segment profit margin of ** 35.9% **.
• ** Infrastructure Asset Business **: Net sales of 756 million yen (+1,173.9% YoY), segment profit of 100 million yen (+164.7% YoY), segment profit margin of ** 13.3% **.

A new revenue structure has been established, combining the high-margin, software-centric AI business with the scale-oriented Infrastructure Asset business.

Analysis of Operating Profit Fluctuations

Operating profit increased from 428 million yen in the previous fiscal year to 459 million yen (+31 million yen). Key factors include:

• ** Positive Factors : Profit boost from significant revenue growth ( +1,055 million yen YoY **).
• ** Negative Factors (Growth Investment) : Increased outsourcing costs ( +538 million yen ), engineer personnel costs ( +151 million yen ), sales and administrative personnel costs ( +109 million yen ), rent and relocation expenses ( +86 million yen ), and recruitment costs ( +36 million yen **).

A notable characteristic is the company's ability to grow operating profit while simultaneously executing aggressive hiring, human capital investment, and facility expansion associated with the scaling of energy storage development.

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3. Segment Deep Dive (1): Strong Customer Base and High Productivity in the AI Business

In the AI Business, the core ** "Power Domain" ** grew steadily with net sales of 1,407 million yen (+22.0% YoY), while the ** "Urban/Transportation Domain" ** expanded rapidly to 402 million yen (+86.6% YoY), establishing itself as a new growth pillar.

Furthermore, net sales per engineer rose to ** 30.1 million yen ** (previous year: 29.0 million yen), demonstrating continued ** productivity improvements ** even while scaling the workforce.

Repeat Indicators Demonstrating Deepened Customer Relationships

Sustainable growth in the AI Business is underpinned by exceptionally high customer retention.

[Significance and Background of the Slide Above]

This slide provides critical data demonstrating that GRID's AI business is not limited to one-off contract development but has established a ** "solid, stock-like revenue structure driven by high repeat rates." **

As shown in the left graph, the ** customer repeat rate ** based on the number of clients has risen to ** 75% (+5.0pt YoY) ** for two consecutive years. Furthermore, the right graph shows that the ** sales-based repeat rate reached 89% **, maintaining an ** exceptionally high level of over 85% for three consecutive years **.

This indicates that the AI solutions (such as planning optimization engines) deployed for clients are being integrated into core operational workflows, leading to continuous maintenance, operations, and additional development (upselling/cross-selling). The company is successfully executing a healthy LTV (Lifetime Value) maximization cycle: acquiring over 10 new clients each year while expanding the scale of transactions with existing clients (** average revenue per client increased by 9.2 million yen YoY to 60.5 million yen **).

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4. Segment Deep Dive (2): Rapid Ramp-up of the Infrastructure Asset Business

The Infrastructure Asset Business (energy storage development) has fully transitioned from a model centered on development support to a ** "develop, construct, and sell" business model **.

• ** Rapid Revenue Expansion **: Sales jumped from 59 million yen in the previous year to ** 756 million yen (12.7x YoY) **.
• ** Accumulation of Orders and Backlog **: Following the receipt of multiple projects totaling ** approximately 1.6 billion yen ** in Q4 alone, the ** order backlog reached 1,101 million yen ** at the end of the fiscal year. This backlog is expected to contribute to sales from FY2027 onwards.

This result confirms that the market strongly supports GRID's unique position of providing integrated software (AI optimization) and hardware (energy storage assets).

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5. FY2027 Full-Year Earnings Forecast: Continuation of the High-Growth Scenario

The full-year earnings forecast for FY2027 projects continued significant growth in both revenue and profit.

• ** Net Sales **: ** 4,500 million yen (+44.3% YoY) **
  • AI Business: ** 3,000 million yen (+27.0% YoY) **
  • Infrastructure Asset Business: ** 1,500 million yen (+98.3% YoY) **
• ** Operating Profit **: ** 600 million yen (+30.6% YoY) ** (Operating profit margin: 13.3%)
• ** Ordinary Profit **: ** 610 million yen (+30.8% YoY) **
• ** Net Profit **: ** 400 million yen (+15.9% YoY) **

[Significance and Background of the Slide Above]

This slide visualizes the ** "accelerated company-wide performance scenario driven by the two-business structure" ** for FY2027.

In the AI Business, the company aims for ** 3,000 million yen in sales **, anticipating steady expansion across all domains: power, manufacturing, and transportation. The Infrastructure Asset Business is expected to grow rapidly from 756 million yen to ** 1,500 million yen (approx. 2x) **, driven by the recognition of the previous year's order backlog and the conclusion of new projects.

Company-wide operating profit is planned at ** 600 million yen **, an increase of 140 million yen YoY. This demonstrates a path to achieving a ** profit growth rate exceeding 30% **, even while absorbing increased personnel costs associated with recruitment and organizational strengthening. It visually highlights this fiscal year as a turning point where both engines begin to operate at full capacity.

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6. Project Pipeline and Mid-to-Long-Term Strategy

AI Business Project Pipeline (Analysis by Order Probability)

To support the FY2027 AI Business sales target (3,000 million yen), a robust project pipeline has been presented.

[Significance and Background of the Slide Above]

This slide shows the ** "sales opportunity funnel (project pipeline)" ** for the AI Business at the start of the fiscal year, serving as critical supporting data to prove the high probability of achieving the business plan.

As of August 7, 2026, the company holds a total pipeline of ** 155 projects worth 3.32 billion yen **. A breakdown reveals that ** "operations and maintenance" accounts for 0.64 billion yen (41 projects) **, and ** "projects already ordered and under development" account for 0.96 billion yen (33 projects) **. These highly certain projects alone account for ** 1.60 billion yen (over half of the total) **.

In addition, ** "high-probability projects" (0.52 billion yen, 21 projects) ** and ** "high-potential projects" (0.82 billion yen, 36 projects) ** are lined up. The logic for achieving the 3,000 million yen annual sales target is clearly demonstrated by systematically converting these negotiations into closed deals and deliveries.

Mid-to-Long-Term Development Roadmap for the Infrastructure Asset Business

In the Infrastructure Asset Business, the company is leveraging its current development rights to secure contracts for large-scale projects (extra-high voltage energy storage stations).

Regarding the development capacity roadmap, the company plans to scale up from 32MWh in FY2026 to 67MWh in FY2027, 144MWh in FY2028, and finally to ** 400MWh in FY2029 **.

Addressing social challenges such as power supply shortages and grid congestion due to the spread of renewable energy, the company's fundamental competitive advantage lies in its ability to provide both ** "advanced AI-driven operations (software)" and "physical buffers via energy storage stations (hardware)." **

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7. Summary (Key Takeaways)

• ** FY2026 Results **: Achieved ** record-high sales and profit ** with net sales of 3,119 million yen (+51.2%) and operating profit of 459 million yen (+7.3%), driven by steady AI business growth and the ramp-up of energy storage development.
• ** Business Structure Change **: Established the ** "Infrastructure Asset Business" ** as a new independent segment. A two-pillar structure with the high-margin AI business has been solidified.
• ** Strong Customer Base **: The AI Business maintains a ** sales repeat rate of 89% ** (over 85% for three consecutive years), and net sales per engineer have increased to 30.1 million yen.
• ** FY2027 Forecast : Plans for ** net sales of 4,500 million yen (+44.3%) and operating profit of 600 million yen (+30.6%). The company is positioned to maintain high growth, backed by a 3.32 billion yen pipeline at the start of the fiscal year.