Kurita Water Industries (6370) Q1 2027 earnings summary

Executive summary

• Orders surged 77.1% year-over-year, net sales rose 14.3%, and business profit increased 7.8% in the first quarter, with overall results meeting expectations despite segment variation.

• Large facility project wins in East Asia and the US drove high order intake, especially in the Electronics Industry segment.

• Profitability was impacted by additional costs in a specific facility project and a business mix shift toward facilities, with Electronics Industry business profit declining 10.3%.

• The share transfer of Pentagon Technologies Group, Inc. was completed, classifying the overseas precision tool cleaning business as discontinued operations.

Financial highlights

• Orders reached ¥165.7 billion (+77.1% YoY), net sales ¥99.9 billion (+14.3% YoY), and business profit ¥8.8 billion (+7.8% YoY).

• Operating profit rose 58.5% YoY to ¥14.3 billion, and profit attributable to owners of parent jumped 154.4% YoY to ¥14.3 billion.

• Basic EPS increased 159.3% YoY to ¥131.83.

• Gross profit for Q1 FY27 was ¥34.1 billion, up from ¥31.5 billion YoY.

• Comprehensive income for the period was ¥16.2 billion, up from ¥5.0 billion.

Outlook and guidance

• FY 03/2027 business forecast revised upward to reflect gains from the Pentagon Technologies share transfer.

• Full-year guidance: orders ¥470.0 billion, net sales ¥425.0 billion, business profit ¥61.5 billion, profit attributable to owners of parent ¥50.7 billion, and EPS ¥475.47.

• Dividend forecast for FY27 is ¥134.00 per share, up from ¥112.00 in FY26.

• ROE forecast at 14.9%, ROIC at 9.7%.