Air Water (4088) Q4 2025 earnings summary

Executive summary

• Achieved record-high revenue and profit in FY2024, with revenue of ¥1,075.9B (+5.0% YoY), operating profit of ¥75.2B (+10.2% YoY), and net income of ¥49.1B (+10.6% YoY), driven by price management, productivity gains, and strong demand in semiconductor and data center markets.

• Growth was supported by digital/semiconductor-related business, overseas industrial gas, and productivity improvements in Japan.

• Opened new innovation and R&D facilities to support growth and carbon neutrality initiatives.

• FY2025 outlook projects continued growth in all segments, supported by semiconductor-related expansion, recovery in functional materials and consumer health, and ongoing price management.

• Dividend payout ratio target raised to 35% for medium- to long-term shareholder returns.

Financial highlights

• FY2024 revenue: ¥1,075.9B (+5.0% YoY); operating profit: ¥75.2B (+10.2% YoY); net income: ¥49.1B (+10.6% YoY); EPS: ¥214.57.

• Gross profit rose to ¥231.5B (+5.1% YoY); operating margin improved to 7.0% (+0.3pt YoY); ROE: 9.8%.

• Free cash flow increased to ¥31.1B; cash and equivalents at period end: ¥70.6B.

• Equity ratio: 41.4% (up from 40.0%); total assets: ¥1,250.1B.

• Dividend per share increased to ¥75; payout ratio raised to 35%.

Outlook and guidance

• FY2025 revenue forecast: ¥1,150.0B (+6.9% YoY); operating profit: ¥84.0B (+11.6% YoY); net income: ¥53.0B (+8.0% YoY); EPS: ¥231.28.

• All segments expected to grow, with notable gains in Digital & Industry, Health & Safety, and Other segments.

• Capital investment plan for FY2025: ¥94.0B (+¥13.5B YoY), focused on electronics, resource recycling, and global expansion.

• Dividend policy emphasizes stable, progressive dividends aligned with business performance.

• FY2025 annual dividend forecast at ¥75 per share.