Air Water targets profitability in "terrAWell30 2nd stage" plan

Air Water Inc. (TSE:4088) has announced its medium-term management plan, "terrAWell30 2nd stage," covering FY2025-2027, marking a transition from scale expansion to profitability. Building on the success of "terrAWell30 1st stage," which saw the company achieve JPY1 trillion in revenue in FY2022 and a CAGR of 6.6% and 4.9% for revenue and operating income respectively, the new plan prioritizes efficient resource allocation into growth areas after thorough business review. The company aims to optimize its business portfolio by improving and rationalizing low-growth, low-profit segments, targeting a market capitalization of JPY1 trillion by FY2030, double the current level. Air Water is projecting an operating income margin of 8.5%, ROE of 11%, and ROIC of 7% by FY2027, building on FY2024 figures of 7.0%, 9.8%, and 5.5% respectively. The plan involves growth and investment strategies and improvements to PBR and cash generation and maximizes the potential of the workforce and increases productivity. It balances responding to climate change with expanding global solutions. The company intends to allocate JPY250 billion in growth investments and JPY70 billion in capital investments over the next three years. A shareholder return policy aims to increase the dividend payout ratio to 35% and enhance shareholder returns.