Kurimoto,Ltd.

Business Details

Comprises the Pipe Systems Division, which produces ductile iron pipes and fittings and various control valves along with associated construction work, and the Valve Systems Division. Main customers are public and private demand for waterworks, agricultural water, sewerage, defense, electric power, and steel applications. Consolidated subsidiaries Kurimoto Shoji Co., Ltd., Yamatogawa Co., Ltd., and Hokkaido Kanzai Co., Ltd. serve as authorized distributors handling sales, while Kurimoto Pipe Engineering Co., Ltd. handles water pipeline design, construction, and management. This is the core segment, accounting for approximately 52% of consolidated net sales.

Recent Overview

Solid pipe shipments offset the drop-off effect in valves, resulting in a ¥3,754 million increase in net sales and a ¥703 million increase in profit year on year

In the Lifeline Business for FY2026 (ending March 2026), although net sales in the Valve Systems Division decreased due to the drop-off effect from large-scale projects recorded in the same period of the prior year, solid shipments of ductile iron pipes for waterworks in the Pipe Systems Division led to net sales to outside customers of ¥65,960 million, an increase of ¥3,754 million year on year. Segment profit increased by ¥703 million year on year to ¥4,732 million, driven by higher profit from increased sales. Capital investment aimed at reducing CO2 emissions and rationalizing ductile iron pipe production at the Kagaya Plant is underway, and the increase in tangible fixed assets, etc. reached ¥4,946 million, a substantial increase year on year.

Key Products

Growth Drivers

• Continued expansion of demand for renewal and seismic resilience upgrades of aging waterworks infrastructure
• Expanded response to lifeline renewal projects in the agricultural water, sewerage, defense, and private markets
• Enhancement of added value through the shift to a solutions business including pipeline design, construction, and maintenance
• Expansion of projects for electric power and steel applications and overseas projects in the Valve Systems Division
• Strengthened competitiveness through investment in CO2 emission reduction and production rationalization at the Kagaya Plant

Risks

• Risk of order volatility for large-scale projects in the Valve Systems Division (drop-off effect occurred from large-scale projects in the same period of the prior year)
• Risk of profitability deterioration due to rising prices of materials, equipment, and labor costs
• Long-term risk of declining waterworks demand due to population decline
• Uncertainty in progress estimates for construction contracts (impact on revenue recognition)
• Risk of rising raw material procurement costs due to geopolitical risks such as the Middle East situation

Business Details

Develops various industrial machinery (powder equipment, presses, etc.), production of special cast iron and cast steel and associated construction work, and various plant engineering. Key affiliated companies include K.S. Tec Co., Ltd., Yashima Kako Ltd., Readco Kurimoto, LLC, Kurimoto USA, Inc., and Japan Casting Co., Ltd. Note that Sankyo Kikai Co., Ltd. was absorbed and merged into the Company effective April 1, 2026. This segment is primarily driven by private-sector demand, with its main value proposition being the supply of equipment supporting decarbonization and a circular society.

Recent Overview

Decreased sales and profit due to a decline in percentage-of-completion projects and recognition of impairment loss; absorbed and merged Sankyo Kikai Co., Ltd.

In FY2026 (ending March 2026), net sales decreased by ¥3,510 million year on year to ¥27,448 million, and segment profit decreased by ¥487 million year on year to ¥1,259 million, due to a decrease in percentage-of-completion projects and other factors recorded in the same period of the prior year in the Machinery Division. In addition, the Machinery Systems Business segment recorded an impairment loss of ¥731 million. The Cast Materials Division performed steadily. As a subsequent event, the Company absorbed and merged its wholly owned subsidiary Sankyo Kikai Co., Ltd. effective April 1, 2026, integrating the core technology of the recycled aggregate business into the Company's business division.

Key Products

Growth Drivers

• Capturing demand related to carbon neutrality and circular economy initiatives (secondary battery manufacturing equipment, recycled aggregate equipment)
• Consolidation of management resources and realization of synergies through the absorption-type merger with Sankyo Kikai Co., Ltd. (in-house integration of the recycled aggregate business)
• Medium- to long-term market growth for press equipment maintenance and plant projects in the Machinery Division
• Capturing international demand for industrial machinery through overseas expansion (Kurimoto USA, Inc. and Readco Kurimoto, LLC)
• Supporting earnings based on the stable performance of the Cast Materials Division

Risks

• Risk of period-to-period fluctuations in net sales and profit due to timing of recognition of percentage-of-completion projects
• Impact of sluggish order environment and rising costs in the private-sector demand segment, with recovery in profitability expected to take time
• Structural change risk in demand for hot forging presses due to the automotive industry's response to CASE trends (e.g., EV adoption)
• Risk of asset value impairment, as seen in the impairment loss of ¥731 million recorded at an affiliated company during the current period
• Risk of rising manufacturing costs due to soaring raw material and energy prices

Business Details

A segment that produces various ducts, polycon and FRP pipes, and various synthetic resin molded products along with associated construction work. Centered on the Building Materials Division (noise reduction-related and road/bridge peripheral materials) and the Chemical Products Division (water conduits for electric power and small-scale hydroelectric power generation, etc.), it supplies materials to diverse markets including construction, sewerage, electric power, and railways. Products are mainly manufactured and sold by the Company, with some sold through consolidated subsidiary Kurimoto Shoji Co., Ltd. as an authorized distributor. Tsukasa Kogyo Co., Ltd. was newly consolidated in the current period, and group companies (Zentec Co., Ltd., Kurimoto Polymer Co., Ltd., etc.) also contribute to sales.

Recent Overview

Sales increased, but operating profit decreased by ¥180 million year on year due to the drop-off effect from large-scale projects at group companies

In the Industrial & Construction Materials Business for FY2026 (ending March 2026), net sales increased by ¥1,213 million year on year to ¥34,717 million. While net sales of water conduits for electric power-related and small-scale hydroelectric power generation applications performed steadily in the Chemical Products Division, net sales decreased in the Building Materials Division due to delays in on-site progress caused by factors such as improvements in working conditions in the construction industry. Operating profit decreased by ¥180 million year on year to ¥2,404 million, due in part to the drop-off effect from large-scale projects recorded at group companies in the same period of the prior year. Tsukasa Kogyo Co., Ltd. was newly consolidated from the current period.

Key Products

Growth Drivers

• Steady order trends for water conduits for electric power and small-scale hydroelectric power generation applications in the Chemical Products Division
• Expansion of the road and bridge maintenance market (national resilience policy, infrastructure renewal, and seismic resilience demand)
• Business scale expansion through the new consolidation of Tsukasa Kogyo Co., Ltd. (from FY2026, ending March 2026)
• Contribution to increased sales from group companies (Zentec Co., Ltd., Kurimoto Polymer Co., Ltd., etc.)
• Growing demand for noise reduction-related products in the Building Materials Division
• Continued firm demand in the domestic public works-related public-sector demand segment

Risks

• Risk of on-site progress delays and construction delays due to factors such as improvements in working conditions in the construction industry
• Structure in which the drop-off effect from large-scale projects at group companies directly impacts consolidated segment profit and loss
• Rising manufacturing costs due to soaring raw material and energy prices
• Demand fluctuation risk due to dependence on multiple markets including construction, sewerage, electric power, and railways
• Risk of intensifying competition in the road and bridge maintenance market
• Continued impact of rising prices for materials, equipment, and labor costs (in the public-sector demand segment)