Air Water (4088) Q1 2026 earnings summary

Executive summary

• Achieved record-high Q1 revenue of ¥255.7B and operating profit of ¥16.8B, with profit attributable to owners up 14.6% to ¥10.7B and operating margin up 0.9pt YoY.

• Growth driven by digital, semiconductor, and industrial gas businesses, with strong demand for AI-related projects.

• Profitability improved through price management and business portfolio reform.

• Transitioning to a new medium-term plan focused on profitability.

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

Financial highlights

• Q1 revenue rose by ¥9.8B (4.0% YoY); operating profit up ¥2.9B (20.5% YoY); net income attributable to owners up ¥1.4B (14.6% YoY).

• Gross profit increased by ¥4.3B (8.2% YoY) to ¥57.0B; 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 ¥1,220.7B at end of June 2025, mainly from collection of receivables.

Outlook and guidance

• FY2025 full-year revenue forecast remains at ¥1,150.0B (+6.9% YoY); operating profit forecast at ¥84.0B (+11.6% YoY); net income forecast at ¥53.0B (+8.0% YoY); basic EPS projected at ¥231.28.

• Annual dividend forecast unchanged at ¥75.00.