Kurita Water Industries (6370) Q2 2025 earnings summary

Executive summary

• Business profit rose year-over-year on an organic basis, driven by improved cost of sales ratios in both Electronics and General Industry segments, despite a decline in net sales in Electronics.

• Orders and business profit exceeded first-half forecasts, with notable contributions from recurring contract-based services and expanded CSV business.

• Net sales for the six months ended September 30, 2024, rose 3.8% year-over-year to ¥195,530 million, with profit attributable to owners of parent up 18.6% to ¥14,932 million.

• Total consolidated orders increased 13.9% year-over-year to ¥212,223 million, reflecting strong demand in both Electronics and General Industry segments.

• The global economic recovery continued, though with regional disparities; Japan's manufacturing rebounded, while China and Europe saw weaker demand.

Financial highlights

• Orders increased 13.9% year-over-year to ¥212.2B; net sales rose 3.8% to ¥195.5B.

• Business profit grew 17.5% to ¥21.2B; operating profit up 17.5% to ¥21.5B; profit attributable to owners up 18.6% to ¥14.9B.

• Basic EPS increased 18.6% year-over-year to ¥132.83.

• Gross profit increased to ¥70,195 million from ¥62,286 million year-over-year.

• Total equity increased by ¥3.5B to ¥336.9B as of September 2024.

Outlook and guidance

• Full-year forecasts for orders, net sales, and business profit were revised upward: orders to ¥425B, net sales to ¥410B, business profit to ¥50B.

• ROE forecast raised to 10.1%, ROIC to 8.0%.

• Business profit, operating profit, and profit attributable to owners of parent are all expected to exceed prior forecasts, with EPS now projected at ¥306.81.

• Upward revision reflects yen depreciation, improved cost of sales ratio, and strong performance in Electronics Industry segment.

• Cost of sales ratio improvements and favorable foreign exchange rates support higher profit guidance.