WEATHERNEWS INC.
4825・Prime Market・Information & Communication
Business
Weathernews Inc. is a private weather information company established in 1986. Under its corporate philosophy of "We want to protect the lives of sailors. We also want to protect the future of the earth," the company independently collects and analyzes meteorological, oceanographic, geological, hydrological, and space weather data, providing weather content services to both corporate (BtoB) and consumer (BtoS) customers. Its business is composed of four domains: Sea Domain (Marine Weather Services) for large vessels and ports, Sky Domain (Aviation Weather Services) for aviation and helicopters, Land Domain (Land Weather Services) for roads, railways, and energy, and Internet Domain (Consumer Weather Services) for apps and social media, with operations spanning approximately 50 countries worldwide. Centered on its Global Center (Japan), the company has established a 24/7/365 three-pole global operation system across eight cities: Oklahoma, Amsterdam, Copenhagen, Paris, Athens, Manila, and Yangon.
Business Model
A subscription-type business model in which Stock Revenue (recurring service fees) accounts for 95.7% (¥22,490 million) of net sales. The company builds a proprietary observation network through 'Join & Share' value co-creation with corporate and individual supporters, and continuously provides response-content generated by proprietary forecasting models to customers in each Domain. By centralizing operational and development functions at the Global Center in Japan, the company enhances cost efficiency while Strategic Sales Bases (SSBs) in each country address local needs.
Company Strengths
In FY2025 (ended May 2025), total stock revenue was ¥22,490 million, accounting for 95.7% of total revenue of ¥23,505 million. The company operates subscription-based recurring services across the Sea, Sky, Land, and Internet Domains, achieving a revenue structure with high predictability and resilience to economic fluctuations.
In a third-party survey, the company ranked No.1 among the five major domestic services in annual forecast accuracy (hit rate) for three consecutive years. Its data collection system, combining a proprietary nationwide observation network of 13,000 locations with approximately 200,000 weather reports submitted daily, forms an entry barrier that competitors find difficult to replicate in a short period.
In FY2025 (ended May 2025), AI-driven operational efficiency improvements achieved a cumulative reduction of 14,000 hours per month in working hours since the start of the previous fiscal year. Combined with the containment of personnel expense increases and reductions in outsourcing costs, operating profit rose to ¥4,517 million (up 38.1% year on year), with the operating margin significantly improving to 19.2%.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal years, from ¥19,651 million in FY2022 (ending May 2022) to ¥24,479 million in FY2026 (ending May 2026), a CAGR of approximately 5.6%. Operating profit continued to improve sharply, rising from ¥3,271 million in FY2024 (ending May 2024) to ¥4,517 million in FY2025 (ending May 2025) (up 38.1% year on year), and to ¥5,244 million in FY2026 (ending May 2026) (up 16.1% year on year), with the operating margin reaching 21.4%. The main driver of the profit improvement was a reduction in personnel expenses (down year on year) through the use of AI. Ordinary profit rose 22.1% year on year to ¥5,456 million, also aided by the disappearance of foreign exchange losses (¥90 million in the prior period) and a shift to foreign exchange gains (¥28 million). Profit attributable to owners of parent was ¥3,806 million (up 22.2% year on year), marking a new record high. Cash and cash equivalents remained ample at ¥18,825 million.
Growth Strategy
Aiming for revenue growth exceeding 10% through three pillars: transformation into an AI Fusion Company, establishment of a global growth model, and acceleration of capital circulation
Scalable SaaS products are being released in each Domain, with progress in developing new markets such as energy and retail in the Land Domain. In FY2027 (ending May 2027), the company plans to expand sales of core products in the Land Domain through advertising investment and enhanced customer success functions. In the Sea Domain, expansion of high-value-added services centered on SeaNavigator is being promoted.
Under the previous medium-term management plan, a cumulative reduction of 15,300 hours per month in business hours was achieved, completing the shift to a more profitable business structure. Under the new Mid-term Vision 2026, products, forecasting models, and operations are all being redefined on an AI-first basis, with the aim of evolving all staff into an AI-fused group of weather professionals. A gross profit margin of 60% or more has been set as the target metric for measuring the outcomes of AI transformation.
Driven by new customer acquisition and upselling for the Sea Domain in the European market, European revenue in FY2026 (ended May 2026) grew 11.0% year on year to ¥2,512 million. In the Sky Domain, expansion of SkyAviators sales in Asia continued (Sky Domain revenue up 15.5% year on year). The policy is to accelerate global expansion through synergies among customer base, domain, and delivery channel. The Americas remains a challenge, with revenue down 35.7% year on year.
Backed by a solid financial base (equity ratio of 84.5%, cash of ¥18,825 million), the company is accelerating strategic investment in AI infrastructure and human capital alongside shareholder returns. In FY2026 (ended May 2026), including a commemorative dividend, the annual dividend resulted in a payout ratio of 99.1%. For FY2027 (ending May 2027), the projected annual dividend is ¥50 (payout ratio of 58.3%), normalizing the payout ratio while advancing the capital strategy of shifting "from accumulation to circulation."
Last updated: July 17, 2026