Kurita Water Industries (6370) Q4 2026 earnings summary

Executive summary

• Orders rose 7.3% year-over-year to ¥442,961 million and net sales increased 3.6% to ¥402,889 million for FY 03/2026, with business profit up 12.7% to ¥57,343 million, driven by global facility project acquisitions and service business growth.

• Operating profit increased 16.8% to ¥58,290 million, while profit attributable to owners of parent declined 21.4% to ¥15,957 million due to impairment losses related to discontinued operations.

• The overseas precision tool cleaning business was classified as discontinued following a share transfer agreement for Pentagon Technologies Group, Inc., which is being sold.

• Profitability improved in both Electronics and General Industry segments, with notable expansion in the CSV business and optimization of product composition.

Financial highlights

• FY 03/2026 orders: ¥443.0B (+7.3% YoY); net sales: ¥402.9B (+3.6% YoY); business profit: ¥57.3B (+12.7% YoY); business profit margin: 14.2% (+1.1pp YoY).

• Operating profit: ¥58.3B (+16.8% YoY); profit before tax: ¥58.2B (+14.7% YoY).

• Profit attributable to owners of parent (including discontinued): ¥16.0B (-21.4% YoY); basic EPS: ¥145.34 (-19.6% YoY).

• Gross profit increased to ¥153,154 million from ¥143,694 million year-over-year.

• Total assets grew to ¥564,422 million, and equity attributable to owners of parent reached ¥341,151 million.

Outlook and guidance

• FY 03/2027 forecast: orders +6.1% YoY, net sales +5.5% YoY to ¥425,000 million, business profit +7.2% YoY to ¥61,500 million.

• Profit attributable to owners of parent is projected to surge 163.2% to ¥42,000 million, reflecting the absence of major impairment losses.

• Electronics segment expected to benefit from continued semiconductor investment; General Industry to see profit growth despite Middle East geopolitical impacts.

• CSV business net sales forecast to rise to ¥68.0B (+9.5B YoY), with strong growth in General Industry.

• Annual dividend for FY2027 is planned at ¥134 per share, up from ¥112 per share.