Kurita Water Industries (6370) Q2 2027 earnings summary

Executive summary

• 1H FY03/2027 orders rose 81.8% YoY to ¥359.6bn and net sales increased 9.3% to ¥206.9bn; business profit fell 74.0% to ¥6.3bn, including ¥20.0bn of additional U.S. facility-project costs.

• Excluding U.S. project costs and FX impact, 1H business profit increased ¥1.0bn YoY; the FY business-profit forecast was reduced to ¥40.0bn, while PSV-27 targets remained unchanged.

• Pentagon Technologies was sold on June 30, 2026 and classified as discontinued operations; the transfer generated a ¥5.0bn realized translation gain.

Financial highlights

• 1H net sales were ¥206.9bn; operating profit was ¥9.5bn, profit before tax ¥11.2bn, and profit attributable to owners ¥7.4bn.

• Basic EPS was ¥68.71 versus ¥155.90 YoY; business profit margin was 3.0% versus 12.8%.

• Gross profit declined to ¥57.0bn from ¥71.5bn; total comprehensive income was ¥2.1bn versus ¥20.5bn.

Outlook and guidance

• FY03/2027 forecasts: orders ¥555.0bn, net sales ¥455.0bn, business profit ¥40.0bn, operating profit ¥43.5bn, profit attributable to owners ¥28.7bn and basic EPS ¥269.41.

• Versus the August outlook, orders increased ¥85.0bn and net sales ¥30.0bn; business profit decreased ¥21.5bn, reflecting ¥23.6bn of additional U.S. project costs.

• FY dividend forecast remained ¥134 per share, split equally between interim and year-end dividends.

• PSV-27 FY03/2028 targets remain net sales ¥470.0bn, business profit margin 16%, ROE of at least 12% and ROIC of at least 10%.