Air Water Inc.

4088

JP3160670000

Commodity Chemicals

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Apr. 03	Japan Stocks Rise As BOJ Keeps Rate Path Intact	MT
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Air Water : Result Presentation For the Second Quarter of the March 31, 2026 Fiscal Year

Published on 02/16/2026 at 11:32 pm EST

Publicnow

AIR WATER INC.

-1.99%

‌Fiscal year 2025 Second Quarter

Financial Results Explanator y Materials

February 13, 2026

Agenda

Contents

‌Introduction P.3
Summary of Second Quarter Financial Results for Fiscal Year 2025 P.11
Detailｓ of Second Quarter Financial Results for Fiscal Year 2025 P.14
Fiscal Year 2025 Full-Year Financial Results forecast P.19
Supplementary Material P.21

Notes

The numerical targets and forecasts presented in this document reflect the judgment of our company based on information currently available and involve potential risks and uncertainties. Therefore, the reader should note that actual business performance may differ significantly from the projections made herein due to changes in various factors.
Air Water Inc.'s financial statements are prepared in accordance with "IFRS"(International

Financial Reporting Standards).

Ⅰ. Introduction

‌As announced in our press release dated February 12, 2026, entitled "Notice Concerning

the Receipt of the Investigation Report of the Special Investigating Committee (as of February 9, 2026)," the investigation conducted by the Special Investigating Committee revealed that, in addition to the fact that inappropriate accounting treatments had been carried out within our Group, the involvement of top management and members of the

management team was recognized in part.

we extend our deepest apologies to our shareholders, investors, and all stakeholders for

the great inconvenience and concern that we have caused

We take seriously the cause analysis and recommendations set forth in the

investigation report, and, as our most important management priority, we will implement recurrence prevention measures with unwavering determination and work together as an entire company to restore public trust.

Background

‌Regarding the Investigation by the Special Investigating Committee

July 2025	Improper accounting related to inventories (deferral of loss recognition) was identified at a consolidated subsidiary.
October 9, 2025	A Special Investigating Committee composed of external experts was established.
November 13, 2025	A Management Reform Committee was established.
November 14, 2025	Approval was obtained for an extension of the deadline for submission of the semiannual report (announcement of results for the second quarter of the fiscal year ending March 2026 was postponed).
December 3, 2025	The Chairman of the Board resigned.
February 6, 2026	The Company disclosed the summary of financial results for the third quarter of the fiscal year ending March 2026 more than 45 days after the quarter-end.
February 12, 2026	The Company received the investigation report of the Special Investigating Committee (as of February 9).
February 13, 2026	The semiannual report was submitted (the accounting auditor's review resulted in a "qualified conclusion").

Establishment of the Special Investigating Committee

Composition
Chairperson： Masatoshi Obara (Attorney-at-law; Partner, Kikkawa Law Office; Former President of the Osaka Bar Association; Former Vice President of the Japan Federation of Bar Associations)
Member: Wataru Nakamori (Attorney-at-law; Partner, Kitahama Law Office)
Member: Mamoru Honda (Certified Public Accountant; Partner, PwC Risk Advisory LLC)
Scope of Investigation

Investigation of the facts
Investigation into the existence of similar matters
Assessment of the impact amount
Identification of root causes and recommendations for recurrence prevention measures
Other matters deemed necessary by the Committee

‌Summary of Findings from the Investigation Report of the

Summary of Investigation Results

as of February

Company Name	Summary
Nippon Helium	Since fiscal year 2019, losses related to helium raw materials were intentionally understated. Repeated deferral of loss recognition for unrecorded losses resulted in the recognition of overstated inventories that did not actually exist.
Air Water Ecoloca	In addition to the occurrence of inventory discrepancies and the avoidance of loss recognition after their discovery, a substantial number of improper accounting practices were identified, including the overstatement of sales.
Air Water Mechatronics	Loss recognition for stagnant inventories was not approved, and proposals were made to defer losses by spreading them over subsequent periods. In addition, accruals for bonuses were avoided, resulting in the deferral of expense recognition related to bonus payments. Furthermore, multiple cases were identified in which sales were recorded without sufficient confirmation of the inspection conditions agreed with customers.
Air Water Inc. Plant Gas Division	With respect to impairment processing for items expected to be disposed of, loss recognition for inventories with no prospect of use was deferred by returning approval requests for loss recognition.
Air Water Safety Service	It was revealed that non-existent work-in-progress inventories were recorded on the books. Although immediate loss recognition was required, the deferral of loss recognition was tolerated. In addition, in its power business division, fraudulent revenue recognition was carried out by abusing the percentage-of-completion method.
Others	At the Company and a significant number of Group companies, various improper accounting treatments were carried out with the objective of inflating sales and profits. These included the overstatement of inventories, deferral of asset impairment losses, premature revenue recognition, inflation of consolidated sales through the use of unnecessary intermediaries, avoidance of provisions, and capitalization of expenditures lacking asset substance to adjust profit or loss.

Special Investigating Committee (as of February 9)

‌Prior-Period Adjustments (Planned)

Adjustments (Planned) Based on the Investigation by the Special

Investigating Committee and the Company's Voluntary Review

(Unit: Billion yen)

			Prior-Period Adjustments (Planned)）*1
Revenue	Special Investigating Committee		▲２５.７
	Voluntary Review*２		▲４１.０
	Total		▲６６.７
Operating profit	Special Investigating Committee		▲７.６
	Voluntary Review※2	Impairment of property, plant and equipment and goodwill	▲１２.２
		Other	▲１３.３
		Subtotal	▲２５.５
	Total		▲３３.２

* 1 : Prior-period adjustments will be made over multiple fiscal years.

* 2 : The voluntar y review also includes items such as impairment of property, plant and equipment and goodwill, as well as the consolidation impact of non -consolidated subsidiaries.

‌Regarding Recurrence Prevention Measures

１．Reform of Corporate Culture	・A fundamental reform of the corporate culture that places the highest priority on compliance and aims to foster a sound, open, and integrity-driven environment that encourages appropriate conduct. ・The appropriate setting of performance targets and the elimination of excessive performance pressure ・A fundamental strengthening of education and training, including ethics and accounting literacy ・Enhancement of the internal whistleblowing system
２．Governance Reform	・Strengthening of the supervisory function of the Board of Directors ・Strengthening of the audit function of the Audit & Supervisory Board ・Strengthening the role of the Nomination and Remuneration Committee
３．Rebuilding of the Management Infrastructure and Internal Control	・The establishment of executive officers responsible for management and finance ・The strengthening of the functions of the management departments, centered on the accounting department ・The rebuilding of internal control systems from a Group-wide perspective ・The strengthening of the internal audit function
４．Review of Group-wide Strategy (Business Portfolio)	・The redefinition of core competencies ・The selection and concentration of businesses ・The reorganization and optimization of Group companies

In order to undertake fundamental reforms with real effectiveness, we have established four key items as recurrence prevention measures and will implement them with unwavering determination.

‌Future Action

Future Schedule

From March 2026 onward

・Disclosure of disciplinary actions against the relevant parties

・Implementation of recurrence prevention measures, verification of their effectiveness, and consideration of additional measures

・Restatement of prior-period securities reports, financial results summaries, and internal control reports

・Completion of the investigation by the Special Investigating Committee (receipt of the final investigation report)

・Announcement of third quarter financial results for the fiscal year ending March 2026

May 2026

・Announcement of full-year financial results for the fiscal year ending March, 2026

We will continue to fully cooperate with the investigation by the Special Investigating Committee, including matters that remain outstanding, while aiming for the early completion of the investigation and taking steps toward the early normalization of our financial results announcements. In order to restore public trust, we will

disclose the status of our recurrence prevention measures in a timely and appropriate manner. 9

‌By leveraging irreplaceable global resources such as "air" and "water," we contribute to people's daily lives and industries through indispensable products and services.

The Group will return once again to this founding principle, with each member of management and every employee thinking independently, acting with integrity, and transforming ourselves into a company guided by the highest ethical standards.

United as one company, we will carry out fundamental reforms with unwavering determination and rebuild ourselves into a valuable enterprise that achieves sound and sustainable growth.

‌Ⅱ. Summary of Second Quarter

Financial Results for Fiscal Year 2025

‌Main points of the Second quarter financial results for Fiscal Year 2025

(Unit: Billion yen)	FY24 1-2Q Before Revision	FY24 1-2Q After Revision	FY25 1-2Q	Increase/decrease
(Unit: Billion yen)	FY24 1-2Q Before Revision	FY24 1-2Q After Revision	FY25 1-2Q	Amount	YoY
Revenue	508.0	504.6	516.6	＋12.0	102.4%
Operating profit	32.0	27.6	▲5.4	▲33.1	-
Profit before income taxes	31.2	26.8	▲17.6	▲44.4	-

（Impact on Financial Performance from Major Non-Recurring Items）

Revenue

Impairment

losses on fixed

assets and goodwill

▲37.8

Profit before

income taxes

Finance costs

▲12.0

Major Non-Recurring Items

Impairment losses on fixed assets and goodwill
India: 10.2 billion Yen ・ North America (Industrial Gases): JPY 6.4 billion Yen
North America (Cryogenic Equipment): 2.3 billion Yen・ UPS: JPY 7.1 billion・A&F-related: 3.1 billion Yen, etc.
Finance Cost

Losses on Overseas Hydrogen-Related Investments 12

‌Revision to Financial Forecasts

(Unit: Billion yen)	FY25 Full-Year Initial Forecast	FY25 Full-Year Revised Forecast	Increase/decrease
(Unit: Billion yen)	FY25 Full-Year Initial Forecast	FY25 Full-Year Revised Forecast	Amount	YoY
Revenue	1,150.0	1,150.0	-	-
Operating profit	84.0	14.0	▲70.0	▲83.3%
Profit before income taxes	81.0	0	▲81.0	▲100.0％

（Impact on Financial Performance from Major Non-Recurring Items）

Revenue	Impairment losses on fixed assets and goodwill*	-	▲37.8
	Inventory-related	-	▲3.7
	Business Withdrawal	-	▲6.6
	Investigation-related Costs	-	▲13.5
Profit before income taxes	Finance Costs	-	▲12.0

* Including the consolidation impact of non-consolidated subsidiaries

* The annual dividend forecast remains unchanged at JPY 75 per share.

‌Ⅲ. Detailｓ of Second Quarter

Financial Results for Fiscal Year 2025

‌Second Quarter Financial Results for Fiscal Year 2025

Consolidated Statement of Income

(Unit: Billion yen)	FY2024 1-2Q	FY2025 1-2Q	Increase/decrease
(Unit: Billion yen)	FY2024 1-2Q	FY2025 1-2Q	Amount	YoY
Revenue	504.6	516.6	＋12.0	102.4％
Cost of sales	▲394.9	▲400.2	▲5.3
Gross profit	109.7	116.4	＋6.7	106.1％
Selling, general and administrative expenses	▲83.0	▲87.0	▲4.0
Other operating income and expenses	▲2.3	▲37.2	▲34.9
Share of profit of investments accounted for using the equity method	3.1	2.3	▲0.8
Operating profit	27.6	▲5.4	▲33.1	-
Finance income and costs	▲0.8	▲12.2	▲11.4
Profit before income taxes	26.8	▲17.6	▲44.4	-
Income taxes	▲9.4	▲4.0	＋5.5
Loss from discontinued operations	▲0.0	-	＋0.0
Profit	17.3	▲21.6	▲38.9	-
Owners of parent	17.2	▲21.2	▲38.4	-
Non-controlling interests	0.2	▲0.4	▲0.6

Operating profit margin	5.5%	-
Basic net earnings per share for the quarter	75.18 Yen	92.42 Yen

* Basic earnings per share for the quarter are calculated based on the average number of issued shares during the period.

The figures for each period reflect adjustments based on the results of the investigation conducted by the Special Investigating Committee and the Company's voluntary review.

The investigation is currently ongoing, and the figures may be subject to further revision.

‌Second Quarter Financial Results for Fiscal Year 2025

Revenue & Operating profit by segment

(Unit: Billion yen)

Group	Revenue				Operating profit
Group	FY24 １-2Q	FY25 １-2Q	Amount	YoY	FY24 １-2Q	FY25 １-2Q	Amount	YoY
Digital & Industry	165.1	160.0	▲5.1	96.9％	13.8	▲16.7	▲30.5	▲120.8%
Energy Solutions	38.4	39.8	＋1.4	103.7％	2.1	▲0.4	▲2.5	▲16.7%
Health & Safety	114.5	121.9	＋7.4	106.5％	3.0	7.3	＋4.2	238.9%
Agriculture & Foods	87.8	89.2	＋1.4	101.6%	4.4	1.4	▲3.0	31.8%
Other	98.8	105.8	＋6.9	107.0％	3.4	2.4	▲1.0	70.1%
Adjustment*	-	-	-	-	0.8	0.6	▲0.3	68.5%
Total	504.6	516.6	＋12.0	102.4%	27.6	▲5.4	▲33.1	▲19.7%

* Adjustment: Elimination of intersegment transactions and profit or loss of the Company's Head Office divisions that are not allocated to each reporting segment.

FY2025 2Q

+6.9 516.6

5,046

+74

Segment composition ratio

Digital & Industry
Energy Solutions
Health & Safety
Agriculture & Foods
Other
Adjustment

18%

20%

Revenue

516.6

Billion yen

23%

31%

+14

+69

5,166

504.6

▲51

+14

+1.4

▲5.1

+7.4 +1.4

FY24 2Q D&I ES H&S A&F Other FY25 2Q

The figures for each period reflect adjustments based on the results of the investigation conducted by the Special Investigating Committee and the Company's voluntary review.

The investigation is currently ongoing, and the figures may be subject to further revision.

‌Second Quarter Financial Results for Fiscal Year 2025

（単位：

億円）

Consolidated statement of financial position

(Unit: Billion yen)		End of March 2025	End of September 2025	Increase/decrease
(Unit: Billion yen)		End of March 2025	End of September 2025	Amount	YoY
	Current assets	447.9	411.5	▲36.3	91.9%
	Non-current assets	778.4	741.9	▲36.5	95.3%
Total assets		1,226.2	1,153.4	▲72.8	94.1%
	Current liabilities	332.4	297.4	▲35.0	89.5％
	Non-current liabilities	401.5	396.5	▲5.0	98.8％
	Total liabilities	733.9	693.9	▲40.0	94.6%
	Total equity	492.3	459.5	▲32.9	93.3%
Total liabilities and equity		1,226.2	1,153.4	▲72.8	94.1%

Equity attributable to owners of the parent		472.9	444.7
Interest-bearing liabilities		446.4	423.7
Equity ratio attributable to owners of the parent		３８．６%	３８．６%
Net D/E ratio		0.79Times	0.81Times

*"Net interest-bearing liabilities" ÷"Equity attributable to owners of the parent"

The figures for each period reflect adjustments based on the results of the investigation conducted by the Special Investigating Committee and the Company's voluntary review.

The investigation is currently ongoing, and the figures may be subject to further revision.

‌Second Quarter Financial Results for Fiscal Year 2025

Cash flow status

(Unit: Billion yen)	FY2024. 1-2Q	FY2025. 1-2Q	Increase/ decrease
Operating cash flows [(1)]	48.0	44.6	▲3.4
Investment cash flows [(2)]	▲36.8	▲32.3	+4.5
Financial cash flows [(3)]	▲20.5	▲22.2	▲1.7
Total cash flows [(1)+(2)+(3)]	▲9.3	▲9.9	▲0.6
Cash and cash equivalents at the end of the period	58.8	63.8	+5.0

Free cash flows [(1)+(2)]

11.2

+12.3

＋1.0

The figures for each period reflect adjustments based on the results of the investigation conducted by the Special Investigating Committee and the Company's voluntary review.

The investigation is currently ongoing, and the figures may be subject to further revision.

‌Ⅲ. Fiscal Year 2025 Full-Year Financial Results forecast

‌Fiscal Year 2025 Full-Year Financial Results forecast

Fiscal Year 2025 full-year financial results forecast

(Unit: Billion yen)	FY2024 （After Revision）	FY2025 （Revised Forecast）	Increase/decrease		FY2025 (Initial Forecast)
(Unit: Billion yen)	FY2024 （After Revision）	FY2025 （Revised Forecast）	Amount	YoY	FY2025 (Initial Forecast)
Revenue	1,061.1	1,150.0	＋88.9	108.4％	1,150.0
Operating profit	61.3	14.0	▲４７.３	22.8％	84.0
Profit before income taxes	59.8	0.0	▲59.8	-	81.0
Profit attributable to owners of the parent	37.7	▲10.0	▲47.7	▲26.5	53.0

Operating profit margin	5.7%	-
Basic earnings per share	214.57 Yen	▲43.63 Yen
Annual dividend	75.00 Yen	75.00 Yen

The figures for each period reflect adjustments based on the results of the investigation conducted by the Special Investigating Committee and the Company's voluntary review.

The investigation is currently ongoing, and the figures may be subject to further revision.

Ⅳ. Supplementary Material

‌Supplementary Material

Main business activities by segment

Group	Unit	Business
Digital & Industry	Industrial Gases	Industrial gases (oxygen, nitrogen, argon, carbonic acid, hydrogen, helium and others) and related equipment and construction
	Gas Products	On-site gas supply for steel manufacturers
	Digital	Gas supply for semiconductor manufacturers, special gases and chemicals, related equipment, functional chemicals, basic chemicals, etc.
	Global & Engineering	Industrial gases (India and North America), industrial gas-related equipment, engineering and high-power uninterrupted power supplies (UPS)
Energy Solutions	Energy Solutions	LP gas, kerosene, LP gas-related equipment
Energy Solutions	Green Innovation	Carbonic acid, hydrogen, LNG-related equipment, development of businesses related to low carbon and decarbonization
Health & Safety	Medical Products	Medical gases, medical equipment, home care、SPD(centralized management of medical materials and pharmaceuticals in hospitals) and sterilization
	Safety Services	Hospital facility construction, gas fire extinguishing equipment and respirators
	Home Health Care	Hygiene materials、OEM contracts for aerosols and cosmetics、injection needles
	Dental Care	Dental materials
Agriculture & Foods	Agriculture	Vegetable processing、Vegetable processing, wholesaling, farm-fresh market、Agricultural Machinery
	Foods	Ham and delicatessen products, frozen vegetables and sweet
	Beverage	OEM contract manufacturing of beverages, manufacturing and sales of our own beverages
Other	Sea water	Salt, environment and woody biomass power generation (Ako City, Hyogo and Kanda machi, Fukuoka)、Magnesia
	Logistics	Transport, food distribution, medical and environmental distribution and designing and modifying vehicle bodies
	Electricity	Woody biomass-fired power plant (Iwaki City, Fukushima)
	Specialized Trading Company	Electronics-related specialized trading companies
	Other	Construction work

* Businesses that changed on 2 Q are underlined. 22

‌Supplementary Material

Number of consolidated companies

	End of March 2025	End of September 2025	Increase/decrease
Consolidated subsidiaries*	159	156	Decrease of 3 companies
Equity method affiliates	51	52	Increase of 1 company
Total	210	208	Decrease of 2 companies

* The number of consolidated subsidiaries include only companies which Air Water directly consolidates. Affiliated companies consolidated by consolidated subsidiaries are excluded from this number. Consolidated companies listed above include joint operations.

Major newly consolidated companies in Second quarter of FY2025

In the Digital & Industry segment, the number of overseas operating companies decreased by 2. In addition, one company in the Energy Solutions segment was merged and integrated.

Furthermore, as of the end of March 2025 and the end of September 2025,certain non-consolidated

subsidiaries were included in the scope of consolidation.

‌

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Disclaimer

AIR WATER Inc. published this content on February 17, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on February 17, 2026 at 04:31 UTC.

Latest news about Air Water Inc.

Apr. 03	Japan Stocks Rise As BOJ Keeps Rate Path Intact	MT
Apr. 03	Air Water Cuts Executive Pay After Probe Finds Accounting Issues	MT
Apr. 02	Air Water Inc. Announces Step Down of Ryosuke Matsubayashi as Member of the Nomination and Remuneration Committee, Effective April 3, 2026	CI
Feb. 16	Probe at Air Water Reveals Widespread Accounting Irregularities; Shares Drop 15%	MT
Feb. 13	Air Water Inc. Revises Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2026	CI
Feb. 13	Air Water Inc. Announces Restatement of Earnings Results from April 1, 2024 to September 30, 2024	CI
Feb. 12	Air Water Inc. Reports Earnings Results for the Half Year Ended September 30, 2025	CI
Feb. 12	Air Water Says Probe Found Inappropriate Accounting at Units	MT
Jan. 30	Air Water Inc. Appoints Yoshihiro Senzai as Chairperson of the Board of Directors, Effective January 30, 2026	CI
Nov. 21	Air Water advances terrAWell30 profitability vision
Nov. 13	Air Water Inc - decided to postpone announcement of 2Q financial results, originally scheduled for November 14	RE
Nov. 13	Air Water Inc. Announces Interim Dividend for the Period Ended September 30, 2025, Payable on December 8, 2025	CI
25-10-16	Air Water to Operate One of India's Largest Oxygen Plants for Tata Steel	MT
25-10-09	Air Water Sets Up External Panel to Probe Accounting Irregularities	MT
25-10-05	Air Water Inc. completed the acquisition of an additional 40.36% stake in C.I. Medical Co.,Ltd. for ¥30.3 billion.	CI

Chart Air Water Inc.

Duration

Period

4088: Dynamic Chart

Company Profile

Air Water Inc is a Japan-based company mainly engaged in manufacture and sale of industrial gas, chemical, medical, energy related products. It has eight business segments. Industrial Gas-related segment manufactures and sells industrial gas and installs high-pressure gas equipment. Chemical-related segment manufactures basic and fine chemical products. Medical-related segment provides medical gas products and hospital equipment construction. Energy-related segment offers liquefied petroleum gas and kerosene. Agriculture and Food-related segment manufactures and sells fruit, vegetables, frozen food, processed meat products and soft drinks. Logistics-related segment provides logistics service on high pressure gas and general cargo. Seawater-related segment manufactures and sells salts and salt-making by-products, as well as fused magnesia and magnesium oxide. The Other segment consist of aerosol business. It also develops green chemicals and biofuels and provides rehabilitation system.

Employees

20,836

Sector

Commodity Chemicals

More about the company