Kurita Water Industries (6370) Q1 2026 earnings summary

Executive summary

• Net sales decreased 2.2% year-over-year to ¥91,926 million, and business profit declined 5.4%, mainly due to the absence of large facility projects in China.

• Operating profit rose 1.9% year-over-year to ¥8,803 million, aided by a one-time gain in the Electronics Industry segment.

• CSV business net sales grew 10% year-over-year, with steady expansion despite economic stagnation in some regions.

• Comprehensive income dropped sharply to ¥5,039 million from ¥15,167 million in the prior year, mainly due to negative foreign currency translation effects.

• Full-year outlook remains unchanged despite temporary headwinds and foreign exchange impacts.

Financial highlights

• Orders: ¥98.1B, down 1.2% year-over-year; Net sales: ¥91.9B, down 2.2% year-over-year.

• Business profit: ¥7.9B, down 5.4% year-over-year; Operating profit: ¥8.8B, up 1.9% year-over-year.

• Profit attributable to owners: ¥5.6B, down 1.1% year-over-year; Basic EPS: ¥50.84, nearly flat year-over-year.

• Gross margin was stable at 35.3% (¥32,462 million gross profit on ¥91,926 million sales).

• Cash and cash equivalents at quarter-end were ¥53,606 million, down ¥9,345 million from the previous fiscal year-end.

Outlook and guidance

• Full-year and first-half forecasts remain unchanged, with expectations for recovery in semiconductor investment and large projects in China and South Korea from 2Q onward.

• Full-year FY2026 net sales forecast is ¥425,000 million (+3.3% year-over-year), with profit attributable to owners of parent expected at ¥36,300 million (+78.8%).

• Basic EPS for the full year is projected at ¥330.72, factoring in treasury share purchases.

• Dividend forecast raised to ¥112.00 per share for FY2026.