Air Water (4088) Q1 2026 earnings summary

Executive summary

• Achieved record-high Q1 revenue of ¥255.7B and operating profit of ¥16.8B, with operating profit margin up 0.9pt year-over-year.

• Revenue for Q1 ended June 30, 2025, was ¥239,698 million, up 2.1% YoY, with operating profit at ¥15,950 million, up 23.7% YoY, and profit attributable to owners of parent at ¥9,364 million, up 11.5% YoY.

• Growth driven by digital, semiconductor, and industrial gas businesses, with profitability improved through price management.

• The company is transitioning to a profitability focus under its terrAWell30 2nd stage Medium-term Management Plan.

• No changes to the previously announced full-year financial forecast.

Financial highlights

• Q1 revenue rose by ¥9.8B (104.0% YoY); operating profit up ¥2.9B (120.5% YoY); net income attributable to owners up ¥1.4B (114.6% YoY).

• Gross profit increased to ¥56,563 million from ¥53,565 million YoY; operating profit margin improved to 6.6%.

• Basic EPS for the quarter was ¥46.81, up from ¥41.01 YoY.

• Free cash flow was negative at -¥0.7B due to increased capital investment and working capital.

• Total assets decreased to ¥1,189,334 million at end of June 2025, mainly from collection of receivables.

Outlook and guidance

• FY2025 full-year revenue forecast remains at ¥1,150,000 million (+6.9% YoY); operating profit forecast at ¥84,000 million (+11.6% YoY).

• Net income forecast at ¥53,000 million (+8.0% YoY); basic EPS projected at ¥231.28.

• Annual dividend forecast unchanged at ¥75.00.