Kurita Water Industries Ltd.
6370・Prime Market・Machinery
Business
Kurita Water Industries, founded in 1949, is a company specializing in water treatment that provides an integrated, three-pronged offering combining the manufacture and sale of Water Treatment Chemicals, the manufacture and sale of water treatment equipment, and Maintenance and Recurring Contract Services. The business consists of two segments: the Electronics Market (ultrapure water systems, etc. for the semiconductor and electronics industries) and the General Water Treatment Market (water treatment in general for general industry and public-sector customers). In addition to its domestic operations, the company operates globally through 61 consolidated subsidiaries worldwide, including in South Korea, China, Taiwan, Singapore, the United States, and Europe, serving a broad customer base ranging from semiconductor manufacturers to general manufacturing industries and infrastructure operators.
Business Model
After being deeply embedded into customer facilities through the design, construction, and delivery of water treatment equipment, the company builds up recurring revenue through Maintenance contracts, Recurring Contract Services, and the regular supply of Water Treatment Chemicals. In FY2026 (ending March 2026), Maintenance sales in the Electronics Market expanded to ¥25,112 million, up 20.6% year on year, and the equipment order backlog of ¥189,577 million (up 28.1% year on year) serves as a leading indicator of future sales and service revenue.
Company Strengths
The Electronics Market segment recorded net sales of ¥171,797 million and operating profit of ¥27,657 million. The company has a track record of transactions with major global semiconductor accounts in Korea, China, Taiwan, and Europe/US, and continues to deepen customer touchpoints through the launch of large-scale projects in Europe/US and the expansion of maintenance services in East Asia.
The company has an in-house group structure providing integrated services from the design and construction of water treatment equipment, to the supply of water treatment chemicals, to maintenance and recurring contract services. Order backlog for FY2026 (ending March 2026) reached ¥189,577 million (up 28.1% year on year), providing high visibility into future sales. The company is also advancing the establishment of a one-stop sales structure, including the reorganization of 11 domestic sales subsidiaries into 2.
Through the expansion of the CSV business, which contributes to water conservation, GHG reduction, and resource recycling, operating profit in the General Water Treatment Market rose 20.1% year on year to ¥29,700 million, with an improvement in the cost ratio as well. Through horizontal expansion utilizing the group's shared information infrastructure and the expansion of the number of deployment models, the share of sales from the CSV business, which is more profitable than existing businesses, is increasing.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), revenue from continuing operations was ¥402,889 million (up 3.6% year on year), business profit was ¥57,343 million (up 12.7%), and operating profit was ¥58,290 million (up 16.8%), showing a clear improvement in profitability on a continuing-operations basis. This was aided by the disappearance of the ¥2,501 million goodwill impairment loss on Kurita Fracta Holdings, Inc. recorded in the prior period. On the other hand, a loss from discontinued operations of ¥23,938 million—including a ¥19,907 million fair value measurement loss on Pentagon Technologies Group, Inc.—weighed on results, and net income attributable to owners of the parent came to ¥15,957 million (down 21.4% year on year), declining for the second consecutive period. As an external factor, an increase in the foreign currency translation adjustment from overseas operations due to yen depreciation (Other components of equity: +¥15,301 million) supported the financial position. For FY2027 (ending March 2027), net income attributable to owners of the parent is projected at ¥42,000 million, as the impact of discontinued operations falls away.
Growth Strategy
Under PSV-27, the company is pursuing improved profitability through a focus on the electronics industry, expansion of the CSV business, and optimization of the business portfolio.
Strengthening customer touchpoints globally with top-tier semiconductor manufacturers, with a focus on winning and launching large-scale water treatment equipment projects in Europe and the U.S. Orders received in the Electronics Market in FY2026 (ending March 2026) remained at a high level of ¥208,970 million (up 7.5% year on year). In FY2027 (ending March 2026), revenue growth is expected as construction progresses on large equipment projects already ordered in East Asia and North America.
Promoting the expansion of the number of CSV business deployment models that contribute to water conservation, GHG emission reduction, and waste resourcing, as well as horizontal deployment leveraging the group's common information infrastructure. Business profit in the General Water Treatment Market improved significantly in FY2026 (ending March 2026) to ¥29,700 million (up 20.1% year on year), with the effects of cost ratio improvement becoming evident. In FY2027 (ending March 2026), while factoring in the impact of the situation in the Middle East during the first half, profit growth is expected due to cost ratio improvement driven by CSV business expansion.
Regarding PFAS (per- and polyfluoroalkyl substances), for which regulations are being strengthened in the U.S., Europe, and Japan, the company has begun evolving toward a one-stop solution encompassing analysis, removal, and detoxification. Positioned as a new business rooted in social value creation, the company aims to expand this business by leveraging its existing water treatment technology and customer base.
From the perspective of profitability and growth potential, the company is promoting structural reform of its overseas Precision Cleaning business, transferring 100% of the issued shares of Pentagon Technologies Group, Inc. to AEQH20 GmbH (transfer price of up to USD 21 million). The transfer is scheduled for completion on June 30, 2026. With the elimination of losses from discontinued operations, profit attributable to owners of parent in FY2027 (ending March 2026) is expected to be ¥42,000 million (up 163.2% year on year).
In FY2026 (ending March 2026), the company acquired ¥15,165 million of treasury stock and paid an annual dividend of ¥112 (payout ratio of 77.1%). At the Board of Directors meeting on May 14, 2026, an additional share buyback (up to 5 million shares / ¥35.0 billion, through FY2027 (ending March 2026)) was resolved. The dividend forecast for FY2027 (ending March 2026) is ¥134 (up ¥22 year on year). Under a policy targeting a payout ratio of 30-50%, the company is flexibly returning surplus funds to shareholders.
Last updated: July 19, 2026