Air Water (4088) Q2 2025 earnings summary

Executive summary

• Revenue and operating profit reached record highs for Q2 FY2024, with revenue up 6.5% to ¥508.0B and operating profit up 12.7% to ¥32.0B; all segments posted profit growth despite headwinds in the semiconductor market.

• Profit attributable to owners rose 16.4% to ¥20.2B.

• Price management, overseas expansion, and new business initiatives in carbon neutrality contributed positively.

• The Japanese economy showed moderate recovery, but overseas outlook remained uncertain due to monetary policy shifts and geopolitical risks.

Financial highlights

• Q2 FY2024 revenue: ¥508.0B (+6.5% YoY); operating profit: ¥32.0B (+12.7% YoY); net income attributable to owners: ¥20.2B (+16.4% YoY).

• Operating profit margin improved to 6.3% from 5.9% YoY.

• Basic EPS for Q2: ¥88.23 (up from ¥76.05 YoY).

• Free cash flow turned positive at ¥11.7B (from -¥29.6B YoY); cash and equivalents at period end: ¥55.6B.

• Total assets decreased to ¥1,188.9B from ¥1,222.7B at March 2024.

Outlook and guidance

• Full-year FY2024 guidance unchanged: revenue ¥1,100.0B (+7.4% YoY), operating profit ¥78.0B (+14.2% YoY), net income attributable to owners ¥50.0B (+12.7% YoY), and EPS ¥218.76.

• Annual dividend forecast maintained at ¥64.00 per share, with a payout ratio of 29.3%.