Kurita Water Industries Ltd.
6370・Prime Market・Machinery
Electronics Market
Core segment providing water treatment solutions for the semiconductor and electronics industries
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales | ¥171,797 million | ¥169,478 million | ↑ |
| Operating profit (segment profit) | ¥28,712 million | ¥27,834 million | ↑ |
| Business profit | ¥27,657 million | ¥26,179 million | ↑ |
| Segment assets | ¥254,756 million | ¥267,386 million | ↓ |
| Orders received | ¥208,970 million | ¥194,349 million | ↑ |
| Capital expenditures | ¥15,395 million | ¥30,721 million | ↓ |
| Depreciation and amortization | ¥23,213 million | ¥22,814 million | ↑ |
Business Details
Serving the electronics industry, including semiconductor, LCD, and electronic component manufacturers, as its main customers, this segment provides an integrated offering of ultrapure water production equipment and water treatment equipment manufacturing and sales, Recurring Contract Services (including Ultrapure Water Supply Business), Water Treatment Chemicals, Precision Cleaning, and Maintenance. The business operates globally across four regions: Japan, Asia (South Korea, China, Taiwan), the Americas, and EMEA. Note that from the current period, the precision cleaning business of Pentagon Technologies Group, Inc. has been classified as a discontinued operation and excluded from the segment.
Recent Overview
Orders received rose 7.5% year on year to ¥208,970 million; business profit also increased on maintenance growth and improved profitability
In the Electronics Market segment for FY2026 (ending March 2026), multiple large-scale water treatment equipment projects were secured against a backdrop of continued global capacity expansion investment at semiconductor manufacturing plants, pushing orders received to a new high of ¥208,970 million (up 7.5% year on year). Sales rose only modestly to ¥171,797 million (up 1.4% year on year), reflecting the reversal from a large-scale China project in the prior period. Growth in maintenance sales (¥25,112 million, up 20.6% year on year) and improved profitability in water treatment equipment drove business profit up 5.6% year on year to ¥27,657 million, and operating profit up 3.2% year on year to ¥28,712 million. Meanwhile, Pentagon Technologies Group, Inc. has been classified as a discontinued operation, with the divestiture scheduled to be completed on June 30, 2026. Segment assets stood at ¥254,756 million, down ¥12,630 million year on year.
Key Products
Growth Drivers
- Securing orders for large-scale water treatment equipment projects on the back of continued global capacity expansion investment at semiconductor manufacturing plants (sales growth expected in FY2027 (ending March 2027) as construction progresses in East Asia and North America)
- Expansion of the maintenance business driven by strong plant operating rates among customers mainly in Japan and South Korea (maintenance sales of ¥25,112 million in FY2026 (ending March 2026), up 20.6% year on year)
- Strengthened engagement with global account customers in Europe and the Americas and development of infrastructure to support large-scale projects (focus on launching projects secured in the prior period)
- Expansion of the North American water treatment chemicals business (for RO membranes and other applications) through the integration of Avista Technologies, Inc. into Kurita America, Inc.
- Capturing new demand through strengthened PFAS (per- and polyfluoroalkyl substances) treatment and removal business (developing a one-stop solution encompassing analysis, removal, and detoxification)
Risks
- Risk of deteriorating capital expenditure trends among electronics industry customers in the Chinese market (in FY2026 (ending March 2026), the reversal from a large-scale China project in the prior period affected sales, with China sales falling sharply to ¥36,395 million from ¥49,903 million in the prior period)
- Risk of fluctuations in customer plant operating conditions and contract cancellations in the ultrapure water supply business (in FY2026 (ending March 2026), cancellation of ultrapure water supply contracts with some customers led to a decline in recurring contract services)
- Loss of the precision cleaning business and impact of loss from discontinued operations (loss of ¥23,938 million for the period) associated with the planned completion of the transfer of Pentagon Technologies Group, Inc. (scheduled for June 30, 2026)
- Risk of customers postponing or scaling back capital expenditures due to fluctuations in the semiconductor market (concerns over investment restraint due to protectionist policies in the United States and geopolitical risk)
- Risk of project launch and cost increases associated with building new business infrastructure in Europe and the Americas
Last updated: June 23, 2026