Kurita Water Industries (6370) Q2 2026 earnings summary

Executive summary

• Net sales increased by 1.4% year-over-year to ¥198.3B for the first half, with business profit up 11.1% to ¥23.6B and operating profit up 15.9% to ¥24.9B; CSV business net sales rose 11%, progressing in line with forecasts.

• Profit attributable to owners of parent increased 15.0% year-over-year to ¥17.2B, and EPS rose to ¥155.90.

• Recurring contract-based services and maintenance drove higher sales and improved profitability.

• Orders for the full year were revised upward by 2%, while net sales and business profit forecasts remain unchanged.

• Total comprehensive income surged 154.2% to ¥20.5B, reflecting strong profit growth and favorable FX impacts.

Financial highlights

• 1H FY03/2026: Orders ¥212.2B (-2.6% YoY), Net sales ¥198.3B (+1.4% YoY), Business profit ¥23.6B (+11.1% YoY), Operating profit ¥24.9B (+15.9% YoY), Profit attributable to owners ¥17.2B (+15.0% YoY), EPS ¥155.90 (+17.4% YoY).

• Gross profit increased to ¥73.4B from ¥70.2B YoY.

• Total assets reached ¥553.9B, up ¥5.0B from March 31, 2025.

• Equity attributable to owners of parent was ¥336.1B, with a 60.7% equity ratio.

• Cash and cash equivalents at period-end were ¥65.2B, up ¥2.3B from the previous fiscal year-end.

Outlook and guidance

• Full-year forecast: Orders ¥435.0B, Net sales ¥425.0B, Business profit ¥54.0B, ROE 10.7%, ROIC 8.7%.

• Full-year net sales forecast is ¥425.0B (up 3.9% YoY), business profit projected at ¥54.0B (up 9.8%), and profit attributable to owners of parent at ¥36.3B (up 78.8%).

• Basic EPS for the full year is forecast at ¥330.62.

• Dividend forecast raised to ¥112.00 per share for FY ending March 31, 2026.

• Orders forecast revised upward due to recent trends and construction progress; net sales forecast slightly reduced for electronics, raised for general industry.

• CSV business net sales forecast to reach ¥55.5B for FY03/2026.