NORITZ CORPORATION
5943・Prime Market・Metal Products
Business
NORITZ CORPORATION, founded in 1951 and headquartered in Kobe City, is a manufacturer of residential equipment that manufactures and sells water heaters, heat pump water heaters, built-in stoves, and range hoods. The company consists of two segments: Domestic Business (net sales of ¥136,748 million) and Overseas Business (net sales of ¥65,301 million). Domestically, it operates a nationwide sales network primarily through distributors, while overseas it maintains 32 subsidiaries and 5 affiliated companies across China, North America, Australia, and Southeast Asia. Its main customers are general consumers for residential use, with expansion also into the non-residential and commercial segments. Under the group mission "Wakasu Atarashii Shiawase" (Bringing New Happiness to Life), the company is advancing the expansion of its carbon-neutral product lineup.
Business Model
Domestically, products manufactured at facilities such as the Akashi Head Office Plant are sold nationwide through branches and sales offices via distributors, with service revenue also accumulating from After-Sales Service & Maintenance Contracts, installation and delivery, and other services. Overseas, local manufacturing is conducted in China and Australia, while sales subsidiaries operate in North America, Hong Kong, and elsewhere. Against net sales of ¥202,049 million, operating profit stood at ¥4,300 million (operating margin of 2.1%), a low profitability level, but the company is working to improve profitability through price revisions, cost improvements, and a shift toward higher value-added products.
Company Strengths
The natural refrigerant hybrid water heater "HPHB R290" achieved demand exceeding supply following its launch in November 2025. Demonstration testing of a 100% hydrogen combustion water heater also began in Australia in March 2025. R&D expenses totaled ¥4,401 million, with next-generation energy-compatible technologies being developed under a comprehensive collaboration agreement with Kobe University.
Domestically, in addition to a sales structure through distributor networks from nationwide branches and sales offices, subsidiaries such as Noritz Living Create handle after-sales service. Overseas, the company operates manufacturing and sales subsidiaries in China, North America, Australia, and Southeast Asia, achieving profitability in the North America area in FY2025 and continued growth in the Australia area as well.
The company's subsidiary Harman Co., Ltd. launched the premium built-in stove "PROGRE" in March 2025, achieving strong sales. The "Smart Eco Burner," which offers the industry's highest energy consumption efficiency, has been rolled out to 98% of the built-in stove lineup with three-burner grills. Range hood unit sales also grew due to expanded sales channels.
ENVALITH's Perspective
Performance Trend
Revenue over the past 5 fiscal years has moved sideways: ¥178,142 million (FY2021) → ¥210,966 million (FY2022) → ¥201,891 million (FY2023) → ¥202,204 million (FY2024) → ¥202,049 million (FY2025). Operating profit peaked at ¥6,889 million in FY2022, then declined, recovering to ¥4,300 million in FY2025. In Q1 of FY2026 (ending December 2026) (January–March 2026), revenue was ¥51,635 million (down 2.3% year on year) and operating profit was ¥1,678 million (down 16.4% year on year), representing a decline in both revenue and profit on a core business basis. As an external factor, soaring prices of purchased materials have pushed up costs, offsetting the effect of higher domestic sales. Quarterly net profit attributable to owners of parent increased substantially to ¥4,463 million (up 211.6% year on year) due to the recording of a ¥4,430 million gain on sale of investment securities, but ordinary profit remained limited at ¥1,517 million (down 29.9% year on year). The full-year forecast is unchanged (revenue of ¥210,000 million, operating profit of ¥4,500 million).
Growth Strategy
Final year of "V-Plan 26": Three pillars comprising higher value-added products in Japan, geographic diversification overseas, and sustainability management
The company aims to improve unit sales prices and profitability by expanding sales of environmentally conscious, energy-saving products such as the natural refrigerant hybrid water heater "HPHB R290," and by increasing sales volumes of higher value-added products. In the first quarter of FY2026 (ending December 2026), demand expansion exceeded expectations, confirming that the initiative is progressing steadily.
In North America, the company continues to achieve increased revenue and profit through an improved mix of Residential Tankless Water Heaters (North America) and better channel mix. In Australia, Tankless Water Heaters & Heat Pump Water Heaters (Australia) have performed well. In Southeast Asia, the company is building its business foundation by expanding Water Purifiers (Southeast Asia) sales channels into Laos in addition to Thailand. Progress is being made in transforming the business structure so that weakness in China is offset by other regions.
Against the backdrop of expanded capital expenditure associated with the introduction of modular production methods, the company changed its depreciation method for molds from the declining-balance method to the straight-line method starting in the first quarter of FY2026 (ending December 2026), and also revised useful lives to better reflect actual usage conditions. As a result, operating profit, ordinary profit, and quarterly profit before income taxes for the cumulative first quarter each increased by ¥146 million.
The company is building a stable service revenue base through strengthened sales activities for large-scale commercial water heaters and growth in the cumulative number of maintenance contracts. In the first quarter of FY2026 (ending December 2026), continued growth in the cumulative number of maintenance contracts was confirmed, contributing to a strengthened revenue structure that is less susceptible to economic fluctuations.
Last updated: July 17, 2026