ANEST IWATA (6381): FY2025 Results Summary — Record Net Profit as Ordinary Profit Rises on FX and One-Off Gains

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

ANEST IWATA Corporation reported FY2025 net sales of 55,909 million yen (+2.8% year-on-year) and operating profit of 5,563 million yen (-5.8% year-on-year), while ordinary profit rose to 7,718 million yen (+8.1%) and profit attributable to owners of parent reached 5,356 million yen (+25.2%). The company states that net sales increased but did not meet the target, while all profit-related indicators met their respective targets and net profit hit a record high. The annual dividend for FY2025 is planned at 87 yen per share (DOE 7.0%), an increase of 4 yen from the initial forecast. Note: the presentation used here is the version corrected on May 21, 2026, in which the ordinary profit and net profit figures on P.4 were corrected because first-half figures had been included in error.

Consolidated Results (Full-Year Actual)

The operating profit ratio was 10.0% (-0.9 point year-on-year), the ordinary profit ratio 13.8% (+0.7 point) and the net profit ratio 9.6% (+1.7 point). The company attributes the increase in net profit to debt forgiveness gains in China, gains on the sale of Japanese sites, and no repeat of prior-year asset impairments. The impact of foreign exchange on net sales was -160 million yen, and foreign exchange gains on foreign-currency-denominated bonds and other instruments totaled 467 million yen (+446 million yen year-on-year). Average exchange rates were 149.71 yen to the USD, 169.00 yen to the EUR and 20.82 yen to the CNY.

Item	FY2024 (Actual, million yen)	FY2025 (Actual, million yen)	Increase/decrease amount (million yen)	Increase/decrease rate (%)
Net sales	54,411	55,909	+1,498	+2.8
Operating profit	5,903	5,563	-339	-5.8
Ordinary profit	7,139	7,718	+579	+8.1
Profit attributable to owners of parent	4,276	5,356	+1,079	+25.2
Annual dividend per share (yen)	45	87 (planned)	Increased by 42 yen	―

Against the FY2025 result forecasts, the progress rates were 96.4% for net sales (forecast 58,000 million yen), 100.2% for operating profit (5,550 million yen), 115.0% for ordinary profit (6,710 million yen) and 129.1% for profit attributable to owners of parent (4,150 million yen). The forecast annual dividend had been 83 yen. On the variance from the full-year forecast, the company cites a delay in the pace of recovery from the impact of U.S. trade policies on the sales side, while profits tracked above the initial forecast, supported by favorable foreign exchange effects and the recognition of one-off profits.

Segment Results

In the Air Energy business, air compressor sales rose 1.1% to 31,124 million yen, led by expanded sales of oil-free air compressors for OEMs in Europe, while vacuum equipment declined 9.3% to 2,559 million yen on lower sales of vacuum pumps for lithium-ion battery manufacturing-related equipment in China. In the Coating business, coating equipment was almost flat at 17,941 million yen while coating systems grew 29.8% to 3,550 million yen on car-manufacturing projects in Japan and India. Other business sales rose to 734 million yen but recorded an operating loss of -291 million yen due to preparatory expenses for the new mobility after-sales service business in Japan and the Philippines. Effective the first quarter, revenue from DIY equipment previously categorized under Air Energy and Coating has been reclassified to Other.

Segment	Category	FY2024 (million yen)	FY2025 (million yen)	Increase/decrease amount	Increase/decrease rate (%)
Air energy	Air compressors	30,787	31,124	+337	+1.1
Air energy	Vacuum equipment	2,822	2,559	-262	-9.3
Air energy	Net sales total	33,609	33,683	+74	+0.2
Air energy	Operating profit	3,388	3,313	-75	-2.2
Coating	Coating equipment	17,943	17,941	-2	0.0
Coating	Coating systems	2,736	3,550	+814	+29.8
Coating	Net sales total	20,679	21,491	+812	+3.9
Coating	Operating profit	2,608	2,541	-66	-2.6
Others	Net sales	123	734	+611	+496.2
Others	Operating profit	-94	-291	-197	―

The Air Energy operating profit ratio was 9.8% (-0.2 points year-on-year) and the Coating operating profit ratio 11.8% (-0.8 points year-on-year). For both segments the company notes that gross profit declined — mainly in China for Air Energy and mainly in the U.S. for Coating — while cost control continued at overseas subsidiaries.

Region-wise Performance

Revenue increased in all regions except the Americas and China, and the domestic sales ratio rose from 33.7% to 34.7%. The company notes that in Japan and India the year ends in March, while in other areas it ends in December, so the consolidated financial settlement period for other areas is three months behind; the “Others” category covers Asia excluding China, and Australia and South Africa.

Region	FY2024 (million yen)	Composition ratio (%)	FY2025 (million yen)	Composition ratio (%)	Increase/decrease amount	Increase/decrease rate (%)
Japan	18,312	33.7	19,387	34.7	+1,074	+5.9
Europe	9,310	17.1	9,809	17.5	+499	+5.4
Americas	7,075	13.0	6,909	12.4	-166	-2.4
China	11,520	21.2	11,256	20.1	-264	-2.3
Others	8,191	15.1	8,546	15.3	+354	+4.3
Total	54,411	―	55,909	―	+1,498	+2.8

FY2026 Forecast

For FY2026 the company expects revenue to increase while profits decrease. Net sales are targeted at 60,000 million yen (+7.3%), operating profit at 5,200 million yen (-6.5%), ordinary profit at 6,460 million yen (-16.3%) and profit attributable to owners of parent at 3,950 million yen (-26.3%). The company cites increases in labor and logistics costs at home and overseas, temporary expenses associated with the 100th anniversary initiatives, strengthened R&D investment and increased M&A-related costs, together with the absence of the temporary gains recorded in the previous fiscal year (gains on debt waiver in China and gains from the sale of business sites in Japan). Foreign exchange gains and losses are not factored into the earnings outlook. Assumed rates are 151.50 yen to the USD, 175.00 yen to the EUR and 21.00 yen to the CNY. Risk factors listed are delays in component procurement due to heightened tensions in the Strait of Hormuz and the risk of declining demand from rising component costs driven by surges in crude oil and naphtha prices.

Item	FY2025 (Actual, million yen)	FY2026 (Target value, million yen)	Increase/decrease amount	Increase/decrease rate (%)
Net sales	55,909	60,000	+4,090	+7.3
Air energy (net sales subtotal)	33,683	35,650	+1,966	+5.8
Coating (net sales subtotal)	21,491	23,350	+1,858	+8.6
Others (net sales subtotal)	734	1,000	+265	+36.2
Operating profit	5,563	5,200	-363	-6.5
Air energy operating profit	3,313	2,950	-363	-11.0
Coating operating profit	2,541	2,430	-111	-4.4
Others operating profit	-291	-180	+111	―
Ordinary profit	7,718	6,460	-1,258	-16.3
Profit attributable to owners of parent	5,356	3,950	-1,406	-26.3

Shareholder Returns

From FY2025 the company newly adopts the dividend on equity ratio (DOE) as a return indicator, replacing the previous dividend payout ratio. During the current Medium-Term Business Plan period (FY2025 to FY2027) it sets DOE at 7.0-7.5% and will progressively increase the annual dividend per share with FY2025 (planned 87 yen per share) as the lower limit, excluding special factors such as the 100th anniversary commemorative dividend and special dividends projected for FY2027. The FY2026 forecast dividend of 93 yen includes a commemorative dividend of 5 yen per share for the 100th anniversary. The company plans purchases of treasury shares of 3 to 3.5 billion yen during the current Medium-Term Business Plan period, including a share buyback program of up to 1.5 billion yen commencing May 13, 2026. The year-end and annual dividend for FY2025 were to be formally decided at the 80th ordinary general shareholders’ meeting held on June 26. The number of shares issued is 41,745,505.

Dividend (yen)	Interim	Year-end	Annual
FY2024	22	23	45
FY2025	41	46*	87*
FY2026 (Forecast)	43	50	93

Medium-Term Plan and Topics

FY2025 was the first year of the First Medium-Term Business Plan 2025-2027. The company states that one-time costs will temporarily impact FY2026 operating profit, but that it remains committed to final-year targets of 62.0 billion yen revenue, 11.0% ROE and 132 yen EPS through strategy execution and capital efficiency gains. Under the capital policy it maintains an investment policy of investing a total of 26 billion yen or more, of which 0.3 billion yen has already been invested in IT (specifically for PLM and plant DX) and approximately 4.1 billion yen deployed as growth investments for R&D, new domain/business development and M&A exploration.

KGI (Consolidated)	FY2024 Result (Reference)	FY2025 Result	FY2026 Forecast	FY2027 Target
Net sales	54.4 billion yen	55.9 billion yen	60 billion yen	62 billion yen
Operating profit	5.90 billion yen	5.56 billion yen	5.20 billion yen	6.17 billion yen
Operating profit ratio	10.7%	10.0%	8.7%	10.0%
ROE	9.4%	11.0%	8.0%	11.0%
EPS	108.2 yen	136.0 yen	100.2 yen	132.0 yen

On the balance sheet, total assets rose 7.9% to 74,641 million yen and the equity ratio rose to 68.0% (+0.3 points compared with the end of the previous fiscal year), with non-current assets up 13.2% on an increase in investment securities of 2,008 million yen. Operating cash flow was 8,145 million yen (-1,600 million yen year-on-year) and free cash flow 3,819 million yen, with cash and cash equivalents at 18,096 million yen. Capital investment was 3,660 million yen in FY2025 against a plan of 3,910 million yen for FY2026, and R&D cost was 1,838 million yen with 2,360 million yen planned. Among topics, the company agreed in May 2026 to acquire all shares (100%) of SANWA Co., Ltd., a manufacturer and seller of compressors for starting diesel engines and for gas compression, as of the end of June 2026; the impact of this acquisition on consolidated results for FY2026 is expected to be minimal. Trials in Ukraine also began in April 2026 for compressors supporting demining operations that had been donated to a UK-based NGO in March 2025.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.