KITZ CORPORATION
6498・Prime Market・Machinery
Valve Business
KITZ Group's core segment. Manufactures and sells fluid control equipment globally
| Period | Current | Previous | Change |
|---|---|---|---|
| External Net Sales (Q1 FY2026, ending December 2026) | ¥36,530 million | ¥33,260 million (Q1 FY2025, ending December 2025) | ↑ |
| Segment Profit (Operating Income) (Q1 FY2026, ending December 2026) | ¥4,255 million | ¥4,386 million (Q1 FY2025, ending December 2025) | ↓ |
| Segment Profit Margin (Q1 FY2026, ending December 2026) | 11.6% | 13.2% (Q1 FY2025, ending December 2025) | ↓ |
| External Net Sales (Full Year FY2025, ending December 2025) | ¥141,415 million | － | — |
| Segment Profit (Operating Income) (Full Year FY2025, ending December 2025) | ¥18,886 million | － | — |
Business Details
Manufactures and sells Bronze Valves, Steel Valves, Other Valve-Related Products, Filtration-Related Products and their accessories. 32 companies in Japan and overseas participate, supplying products for diverse industrial infrastructure including water, energy, semiconductors, data centers, and hydrogen. As the core segment accounting for approximately 78% of consolidated net sales, the company is actively expanding into overseas markets (North America, Asia, the Middle East, etc.).
Recent Overview
Higher sales but not higher profit: Sales up 9.8% YoY on price revisions and expanding semiconductor demand, profit down 3.0%
External net sales of the Valve Business in Q1 FY2026 (ending December 2026) were ¥36,530 million (up 9.8% year-on-year). In addition to the effects of price revisions and foreign exchange, expanding demand for semiconductor equipment contributed. On the other hand, segment profit was only ¥4,255 million (down 3.0% year-on-year). A decline in sales volume to overseas markets, rising costs of raw materials and parts, combined with the recording of M&A acquisition-related expenses associated with the subsidiary conversion of V-TEX Corporation, weighed on profit. Note that the impact of the V-TEX subsidiary conversion on business results is currently under review and has not yet been incorporated into the full-year earnings forecast.
Key Products
Growth Drivers
- Expanding demand for semiconductor manufacturing equipment (demand recovery confirmed in Q1 FY2026, ending December 2026)
- Continued contribution from the effects of price revisions
- Foreign exchange effects (increase in yen-converted overseas sales due to yen depreciation)
- Rising demand from the US against the backdrop of global expansion of the data center market
- Strengthened supply capabilities through capacity expansion at the Thailand production base
- M&A synergies from the subsidiary conversion of V-TEX Corporation (under review)
- Strategic investment in decarbonization-related growth markets, including entry into the hydrogen supply chain
- Improved customer responsiveness through organizational restructuring into market-based Business Units (BUs)
Risks
- Decline in sales volume to overseas markets (materialized in Q1 FY2026, ending December 2026)
- Profit pressure from recording M&A acquisition-related expenses (subsidiary conversion of V-TEX)
- Rising manufacturing costs due to higher raw material and parts prices
- Risk of global economic downturn due to US tariff measures and US-China trade friction
- Uncertain demand outlook due to geopolitical risks (the Russia-Ukraine war, Middle East situation)
- Foreign exchange risk (impact on earnings from unstable exchange rates)
- Stagnant demand for Asia due to continued weakness in the Chinese real estate market
- Uncertainty that the earnings impact of the V-TEX subsidiary conversion has not yet been incorporated into the full-year forecast
Last updated: March 19, 2026