Air Water Inc. TSE:4088

Air Water : Consolidated Financial Results (Under IFRS)For the Second Quarter of the March 31, 2026 Fiscal Year

Published February 13, 2026 at 10:21 a.m. UTC

Source: MarketScreener

Consolidated Financial Results (Under IFRS) For the Second Quarter of the March 31, 2026 Fiscal Year

February 13, 2026

AIR WATER INC.

Head Office: 12-8, Minami semba 2-chome,

Chuo-ku, Osaka, Japan (Note: All amounts are rounded down to the nearest million yen.)

Results for the three months ended September 30, 2025

Consolidated operating results

(% of change from previous year)

Revenue

Operating

profit

Profit before tax

Profit

Profit attributable to owners of parent

Total comprehensive income

Six months ended

September 30,

2025

Million yen

516,639

2.4

Million yen

-5,447

Million yen

-17,623

Million yen

-21,580

Million yen

-21,179

Million yen

-16,315

Six months ended

September 30,

2024

504,608

6.5

27,612

0.1

26,792

-0.5

17,345

1.5

17,175

4.1

11,902

-70.3

Basic earnings per share

Diluted earnings per share

Six months ended September 30, 2025

Yen

-92.42

Yen

-92.42

Six months ended September 30, 2024

75.18

75.13

Consolidated financial position

	Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent to total assets
As of September 30, 2025	Million yen	Million yen	Million yen	%
As of September 30, 2025	1,153,403	459,455	444,749	38.56
As of March 31, 2025	1,226,240	492,318	472,917	38.57

Dividends

	Dividend per share
	End of first quarter	End of second quarter	End of third quarter	Year-end	Annual
The fiscal year ended March 31, 2025	Yen -	Yen 32.00	Yen -	Yen 43.00	Yen 75.00
The fiscal year ending March 31, 2026	-	37.50
The fiscal year ending March 31, 2026 (Forecasts)			-	37.50	75.00

(Note) Changes in forecast of dividends for the fiscal year ending March 31, 2026, from the latest disclosure: No

Forecast of consolidated operating results for the fiscal year ending March 31, 2026

(% of change from previous year)

Revenue

Operating profit

Profit before tax

Profit attributable to owners of parent

Basic earnings per share

Million yen

Yen

The fiscal year

1,150,000

8.4

14,000

-77.2

-100.0

-10,000

-43.63

(Note) Changes in forecast of consolidated operating results for the fiscal year ending March 31, 2026, from the latest disclosure: Yes

Notes

Significant changes in the scope of consolidation during the period : None
Changes in accounting policies and changes in accounting estimates
1. Changes in accounting policies required by IFRS: None
2. Changes in accounting policies other than (a): None
3. Changes in accounting estimates: None
Number of shares outstanding (ordinary shares)
1. Total number of shares outstanding (including treasury shares)
  As of September 30, 2025: 229,755,057 shares
  As of March 31, 2025: 229,755,057 shares
2. Number of shares of treasury shares
  As of September 30, 2025: 538,051 shares
  As of March 31, 2025: 599,422 shares
3. Average number of shares during the term

Six months of the fiscal year ending March 31, 2026: 229,176,907 shares

Six months of the fiscal year ended March 31, 2025: 228,463,198 shares

Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm : None
Explanations and other special notes concerning the appropriate use of business performance forecasts

・The forward-looking statements such as result forecasts included in this document are based on the information available to AIR WATER INC. (hereinafter "the Company") at the time of the announcement and on certain assumptions considered reasonable. Actual results may differ materially from the forecast depending on a range of factors. For matters relating to the forecasts, please, refer to "1-(3) Explanation of future prediction information such as forecast of consolidated operating results".

Qualitative Information relating to Second Quarter Settlement of Accounts

Explanation of Operating Results

Operating results for the current period
For the cumulative second quarter of the current consolidated fiscal year, the group's revenue was ¥516,639 million (102.4% that of the corresponding period of the previous year), operating loss was ¥5,447 million (operating profit of the corresponding period of the previous year was ¥27,612 million), and loss attributable to owners of parent was ¥21,179 million (profit attributable to owners of parent of the corresponding period of the previous year was ¥17,175 million).
As announced in our disclosure dated October 9, 2025, titled "Notice Regarding the Establishment of a Special Investigating Committee," the Company has confirmed inappropriate accounting treatments related to inventories and other items.
In response to these circumstances, the Company established a Special Investigating Committee composed of external experts and has been conducting an investigation.
With respect to the impact of the inappropriate accounting on the results for the second quarter, the Company has identified the effects arising from the investigation conducted by the Special Investigating Committee, as well as those resulting from voluntary inspection procedures and the reassessment of internal controls(including a re-examination of financial figures and accounting treatments). The related one-time impacts have been reflected in quarterly profit.
In addition, with respect to past investment projects, the Company has re-examined future profitability in detail, identified indicators of impairment at an early stage, and proceeded with reviews and revisions as necessary.
For the second quarter, primarily in overseas operations, the Company assessed the recoverability of fixed assets, goodwill, and intangible assets, and has similarly reflected the impact of impairment losses in the financial results.
Consolidated results by segment for this period

Beginning the second quarter of the fiscal year under review, the Group has revised its segment classifications for certain businesses. The logistics business previously included in the Agriculture & Foods segment has been transferred to "Other Businesses."

The segment information for the second quarter of the previous consolidated fiscal year shown here was prepared based on the revised reporting segments.

（Million yen）

Revenue Operating profit

FY 2025.2Q YoY Growth FY2025.2Q YoY Growth

Digital & Industry	159,987	96.9％	-16,708	－％
Energy Solutions	39,819	103.7％	-353	－％
Health & Safety	121,898	106.5％	7,261	238.9％
Agriculture & Foods	89,163	101.6％	1,396	31.8％
Other Business	105,770	107.0％	2,385	70.1％
（Adjustment） -		- ％	571	68.4％
Total 516,639		102.4％	-5,447	－％

(Note) The adjustment to operating profit is due to costs incurred at the company's headquarters division which was not allocated to any reporting segment.

Revenue in this segment was ¥159,987 million (96.9% that of the corresponding period of the previous year), and operating loss was ¥16,708 million (operating profit of the corresponding period of the previous year was ¥13,833 million). In the Industrial Gas Unit, the management of the prices of industrial gases positively contributed to the results. In the Gas Products Unit, the amount of gas supplied decreased due to the suspension of some blast furnace operations at steel

on-site facilities.

In the Digital Unit, in response to the demand for semiconductors for generative AI applications, sales increased not only in gas supply for advanced semiconductors but also in products such as gas refining equipment and heat control devices for semiconductor manufacturing systems. In the Functional Materials field, performance proceeded steadily due to a recovery in sales of sealants and basic chemicals, as well as the effects of price management.

In the Global & Engineering Unit, the India business experienced temporary impacts due to long-term maintenance at blast furnaces at steel on-site facilities. In the North America business, conditions remained challenging, including a partial withdrawal from the cryogenic equipment business due to a sharp decline in hydrogen-related demand triggered by U.S. policy developments. In the high-output uninterruptible power source (UPS) business, although there was a decline in profit due to the absence of large-scale projects recorded in the previous fiscal year, performance remained steady, supported by the receipt of new orders.

In this segment, the Company has incorporated the impact of the withdrawal from the North American low-temperature equipment business, as well as impairment losses recorded in the India business and other operations.

As a result, revenue declined compared with the same period of the previous year, and operating profit fell significantly below the level of the same period of the previous year.

Revenue in this segment was ¥39,819 million (103.7％), and operating loss was ¥353 million (operating profit of the corresponding period of the previous year was ¥2,111 million).

In the Energy Solutions Unit, for both LP gas and kerosene, sales the effects of revisions to selling prices and ancillary service fees, as well as an increase in sales volumes for household use, which is the core business.

The Green Innovation Unit remained solid by securing sales volumes and striving for a stable supply, despite the shortage of raw gas in the carbonic acid gas supply chain. In addition, sales volumes of hydrogen expanded, mainly for semiconductor-related applications.

In this segment, the Company has incorporated the impact of impairment losses related to green innovation-related

facilities.

As a result, revenue exceeded the level of the same period of the previous year, while operating profit declined compared with the same period of the previous year.

Revenue in this segment was ¥121,898 million (106.5%), and operating profit was ¥7,261 million (238.9%) In the Medical Products Unit, although new SPD projects were pursued for medical institutions,

sales were affected by a decrease in the supply of medical oxygen.

In the Safety Unit, although performance was affected by a decrease in new construction projects, construction projects for power-related facilities contributed to steady performance.

In the Home Healthcare Unit, production and sales of injection needles increased, and sales of consumer products from Kawamoto Corporation proceeded steadily.

In the Dental Care Unit, the use of dental materials and digital molding equipment for oral healthcare increased due to the advanced digitalization of the dentistry industry. In addition, the profits generated by equity-method affiliate Ci Medical Co., Ltd. contributed to the results.

As a result, both revenue and operating profit exceeded the levels of the same period of the previous year.

Revenue in this segment was ¥89,163 million (101.6%), and operating profit was ¥1,396 million (31.8%)

In the Agriculture Unit, sales of Hokkaido-grown potatoes and daikon radishes performed well, and performance proceeded steadily due to measures such as operational streamlining in the fresh produce retail business.

In the Foods Unit, there was an increase in sales of ham and delicatessen products to mass retailers. Meanwhile, overseas production of frozen vegetables decreased significantly due to weather conditions, and sales of sweets to convenience store chains were affected by fewer product adoptions and a deterioration in product profitability, resulting in overall sluggish performance.

In the Beverage Unit, production of soft drinks increased, mainly for major customers, and performance remained steady.

In this segment, the Company has incorporated the impact of impairment losses at overseas subsidiaries engaged in the frozen vegetable business.

As a result, revenue exceeded the level of the same period of the previous year, while operating profit fell below the level of the same period of the previous year.

Revenue in this segment was ¥105,770 million (107.0%), and operating profit was ¥2,385 million (70.1%)

In the Seawater Business, sales of environmental products such as magnesium hydroxide increased. However performance was affected by a decrease in water treatment facility construction compared with the same period of the previous fiscal year, which included large-scale projects.

In the Electricity Unit, the decrease of the market price of the palm kernel shells (PKS) used as fuel to generate electricity and efforts to reduce costs contributed to the results of the Onahama Biomass Power Plant.

In the Specialized Trading Company Business, sales of electronic components and products for advanced semiconductors remained on a recovery track.

In the Logistics Unit, the volume of food products distributed increased and there was progress in the revision of contract prices.

In this segment, the Company has incorporated the impact of impairment losses at other domestic operating companies.

As a result, revenue exceeded the level of the same period of the previous year, while operating profit fell below the level of the same period of the previous year.

Explanation of financial position for the current period

Total assets at the end of the current second quarter consolidated fiscal year stood at ¥1,153,403 million, a decrease of

¥72,836 million from the end of the previous consolidated fiscal year due mainly to a decrease in trade and other