Air Water (4088) Q1 2025 earnings summary

Executive summary

• Achieved record first-quarter revenue of ¥245.9 billion, up 6.9% year-over-year, with operating profit rising to ¥13.9 billion, a 23.8% increase year-over-year; profit attributable to owners rose 31.1% to ¥9.4 billion.

• All business segments posted year-over-year profit growth, driven by price management, new consolidations, overseas expansion, and structural reforms.

• Profit growth was supported by strong overseas industrial gas and agriculture businesses.

• The Japanese economy saw sluggish personal spending but robust corporate capital expenditure; overseas outlook remained uncertain due to geopolitical and monetary factors.

Financial highlights

• Revenue: ¥245.9 billion (+6.9% YoY); Operating profit: ¥13.9 billion (+23.8% YoY); Net income attributable to owners: ¥9.4 billion (+31.1% YoY).

• Gross profit increased to ¥52.7 billion (+¥4.8 billion YoY); operating profit margin improved to 5.7% (+0.8pt YoY).

• Basic EPS for the quarter rose to ¥41.01 from ¥31.39 YoY.

• Cash and equivalents at period end rose to ¥63.2 billion, up ¥10.5 billion YoY; free cash flow turned positive at ¥8.1 billion.

• Total assets at June 30, 2024, were ¥1,231.4 billion, up ¥8.7 billion from March 31, 2024.

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.

• No changes to previously announced forecasts; actual results may differ due to various factors.