Air Water (4088) Q1 2025 earnings summary

Executive summary

• First-quarter revenue reached ¥245.9 billion, up 6.9% year-over-year, with operating profit at ¥13.9 billion, a 23.8% increase year-over-year, though another report notes revenue at ¥234.7 billion and operating profit down 3.9% to ¥12.9 billion.

• All business segments posted year-over-year profit growth in one report, while another notes profit growth in most segments except Health & Safety and Other business.

• Profit growth was driven by industrial gas price management, new consolidations, and overseas expansion, with strong performance in overseas industrial gas and agriculture businesses.

• The Japanese economy faced sluggish personal spending due to rising commodity prices, while capital expenditure showed signs of recovery; overseas outlook remained uncertain due to geopolitical tensions and monetary tightening.

Financial highlights

• Revenue: ¥245.9 billion (+¥15.9 billion, 106.9% YoY) or ¥234.7 billion (+6.9% YoY); Operating profit: ¥13.9 billion (+23.8% YoY) or ¥12.9 billion (−3.9% YoY); Net income attributable to owners: ¥9.4 billion (+131.1% YoY) or ¥8.4 billion (flat YoY).

• Gross profit increased to ¥53.6 billion (+¥4.8 billion YoY); operating profit margin improved to 5.7% (+0.8pt YoY).

• Basic EPS for the quarter was ¥41.01 or ¥36.79, depending on the report.

• Free cash flow turned positive at ¥8.1 billion, up ¥14.3 billion YoY; cash and equivalents at period end rose to ¥66.9 billion.

• Total assets rose to ¥1,197.6 billion, and equity attributable to owners increased to ¥437.9 billion.

Outlook and guidance

• Full-year forecast maintained: revenue ¥1,100.0 billion, operating profit ¥78.0 billion, net income attributable to owners ¥50.0 billion.

• Operating profit margin expected to rise to 7.1% for FY2024; annual dividend forecast at ¥64.00 per share.