ENVALITH
株式会社栗本鐵工所 logo

Kurimoto,Ltd.

5602・Prime Market・Iron & Steel

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株式会社栗本鐵工所 logo
Kurimoto,Ltd.5602

Business

Kurimoto, Ltd. is a long-established industrial manufacturer founded in 1909, forming a group comprised of the company and 22 subsidiaries. In its core Lifeline Business, the company manufactures and sells ductile iron pipes and valves for waterworks, capturing demand for the renewal and seismic reinforcement of water supply infrastructure from water utility operators, its primary customers. In the Machinery Systems Business, the company handles industrial machinery such as forging presses, kneading machines, and crushers, as well as raw materials, while the Industrial & Construction Materials Business supplies chemical products, building materials, and synthetic resin products for construction, electric power, and road infrastructure applications. The Lifeline Business accounts for approximately 52% of net sales of ¥128,126 million (FY2026 (ending March 2026)), with stable public infrastructure demand serving as a stable earnings base.

Business Model

Previously centered on the manufacture and sale of materials, the company is strengthening its DBM (Design Build Maintenance) capabilities against a backdrop of increasing lump-sum orders for pipeline design and construction in the water supply market, thereby expanding its business model to provide solutions including construction and services. Under this two-tier structure, the Lifeline Business serves as the stable earnings base, while the Machinery Systems Business and the Industrial & Construction Materials Business serve as growth drivers, with operating cash flow as the primary funding source for capital expenditure and M&A.

Company Strengths

Since its founding in 1909, the company has continued manufacturing cast iron pipes for water and gas supply for 117 years, building a system that provides ductile iron pipes, valves, and pipeline design/construction in an integrated manner. It continues to strengthen its product lineup, such as expanding the nominal diameters of its earthquake-resistant GX-type pipes to 500mm and 600mm, and the long-term trust relationships with water utilities along with an extensive delivery track record form a barrier to entry.

The equity ratio at the end of FY2026 (ending March 2026) was 60.7% (continuing to improve from 47.5% in FY2022 (ended March 2022)), with net assets reaching ¥95,438 million. Against interest-bearing debt of ¥23,560 million, the company holds cash and cash equivalents of ¥18,395 million, and the interest coverage ratio stands at 27.8 times. The company has high financial soundness and a financial base that allows it to simultaneously pursue growth investment and shareholder returns (dividend payout ratio of 50% or more).

R&D expenses for FY2026 (ending March 2026) were ¥2,008 million. The corporate R&D division (Kurimoto Creative Technology Research Institute) accounted for ¥1,118 million, developing proprietary materials such as the magnetorheological fluid SoftMRF, the lead-free copper alloy Brobea, and the flame-retardant heat-resistant magnesium alloy KEHMA. The company is advancing technology development in multiple new business areas, including FRP mass production technology, recycled aggregate manufacturing systems, and process equipment for secondary batteries, with technological synergies with existing businesses underpinning its competitive advantage.

ENVALITH's Perspective

In FY2026 (ending March 2026), the Lifeline Business drove results with revenue of ¥65,960 million (up ¥3,754 million year on year) and segment profit of ¥4,732 million (up ¥703 million), while the Machinery Systems Business saw a significant decline in both revenue and profit, with revenue of ¥27,448 million (down ¥3,510 million) and segment profit of ¥1,259 million (down ¥487 million), due to a decrease in percentage-of-completion projects and other factors. The FY2027 (ending March 2027) forecast also assumes continued impact from the stagnant order environment and rising costs in the Machinery Systems Business, with company-wide operating profit expected to remain flat at ¥8,000 million (down 0.7% year on year).

In FY2026 (ending March 2026), net profit attributable to owners of the parent was ¥6,701 million (down 3.0% year on year), marking a decline for the second consecutive fiscal year. At the ordinary profit level, a decrease of ¥158 million year on year occurred due to a decline in dividend income received and an increase in interest expenses. While a gain on sale of investment securities of ¥2,433 million was recorded as extraordinary income, an impairment loss of ¥731 million and a provision for allowance for doubtful accounts of ¥138 million were recorded in the Machinery Systems Business segment, warranting attention to the quality of net profit. The FY2027 (ending March 2027) net profit forecast anticipates a recovery to ¥7,200 million (up 7.4% year on year), but there is a risk of fluctuation depending on the trend of extraordinary income and losses.

As an external factor, in the domestic public works-related government demand sector, price increases in materials, equipment, and labor costs are expected to continue, but solid trends are anticipated against the backdrop of infrastructure renewal and seismic retrofitting demand. On the other hand, while the Machinery Systems Business, which serves private-sector demand, is expected to benefit from medium- to long-term market growth driven by decarbonization and resource circulation, the risk of rising prices for crude oil and petroleum-derived raw materials due to the stagnant order environment and Middle East conditions has not been factored into the earnings forecast, and remains a downside risk. A key point of attention over the medium term will be whether the profit contribution from the recycled aggregate business, following the absorption-type merger with Sankyo Kikai Co., Ltd., becomes apparent.

Growth Strategy

Pursuing mid- to long-term corporate value enhancement through three pillars: expanding solutions, investing in growth areas, and improving capital efficiency

A large-scale capital investment aimed at reducing CO2 emissions and rationalizing production is underway at the Kagaya Plant, the company's core production site for ductile iron pipes. Construction in progress increased sharply from ¥2,340 million in the previous period to ¥6,269 million, indicating the investment is approaching its critical phase. Upon completion, enhanced cost competitiveness and improved environmental response capability are expected.

Sankyo Kikai Co., Ltd., which became a wholly owned subsidiary through full acquisition of its shares in April 2024, was absorbed via merger effective April 1, 2026. The core technologies related to Asphalt & Concrete Crushing Plants (Sankyo Kikai Co., Ltd. Business) will be integrated into the Machinery Systems Business segment, aiming to monetize the recycled aggregate business and improve management efficiency toward realizing a circular society.

Tsukasa Kogyo Co., Ltd. was newly consolidated into the Industrial & Construction Materials Business segment starting from FY2026 (ending March 2026) (goodwill of ¥77 million arose). By incorporating the company's manufacturing and sales functions, the company aims to expand business scale and strengthen the revenue base in the chemical products and building materials fields.

Based on the medium-term three-year management plan, the company is promoting capital cost management and sustainability management as twin pillars. The equity ratio has continued to improve, rising from 47.5% in FY2022 (ending March 2022) to 60.7% in FY2026 (ending March 2026). The market-value-based equity ratio also rose significantly to 62.6% (from 38.5% in the previous period), reflecting progress in enhancing shareholder value.

Last updated: July 19, 2026