Kurita Water Industries (6370) Q4 2025 earnings summary

Executive summary

• Net sales rose 6.3% and business profit increased 17% year-over-year for FY 03/2025, but net profit dropped 30% due to impairment losses at US subsidiaries.

• Orders increased 11% to ¥433.0B, driven by large projects in the US and Europe.

• The company is advancing its PSV-27 plan, focusing on global service expansion and value-driven business.

Financial highlights

• FY 03/2025: Orders ¥433.0B (+11%), Net Sales ¥408.9B (+6.3%), Business Profit ¥49.2B (+17%), Net Profit ¥20.3B (-30%).

• Business profit margin improved to 12.0% (+1.1pp YoY).

• Impairment losses totaled ¥19.0B, mainly at Pentagon Technologies and Fracta.

• Dividend per share was ¥92, with a payout ratio of 50.9%.

• Cash and cash equivalents at year-end increased to ¥62.95B.

Outlook and guidance

• FY 03/2026 forecast: Net sales ¥425.0B (+4%), business profit ¥54.0B (+10%), net profit ¥36.3B (+79%).

• Business profit margin expected to rise to 12.7%.

• Annual dividend projected at ¥112 per share.

• Net profit rebound reflects absence of prior year impairment losses.

• Impact of increased US tariffs not included in forecasts.