Air Water (4088) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of FY2024 reached ¥784.9B (+5.4% YoY), with operating profit at ¥53.2B (+6.8% YoY) and profit attributable to owners of parent at ¥35.0B (+12.8% YoY).

• All business segments achieved sales growth, despite some adverse impact from a sluggish semiconductor market.

• Growth was driven by price management in domestic industrial gases, increased sales to semiconductor plants, and expansion in UPS for data centers and overseas gas business.

• The company launched “The Forest of AIR WATER” innovation facility in Sapporo to drive new business creation in energy, environment, agriculture, and food.

• Significant accounting corrections were made due to inappropriate practices at subsidiaries, including overstatement of inventories and premature sales recognition.

Financial highlights

• Gross profit increased to ¥169.8B (+5.6% YoY); operating profit margin improved to 6.8%.

• Basic EPS for the quarter was ¥153.19, up from ¥136.32 YoY.

• Free cash flow turned positive at ¥7.1B, up ¥39.9B YoY.

• Total assets grew to ¥1,261.2B (+3.1% YoY); equity ratio attributable to owners improved to 40.8%.

• Cash and cash equivalents at period-end were ¥67,857 million, up ¥2,714 million year-over-year.

Outlook and guidance

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

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