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Revision of earnings forecasts6370Kurita Water Industries Ltd.Machinery

Notice Regarding the Recognition of an Impairment Loss and Revision of the Full-Year Earnings Forecast

Following the decision to transfer all shares of Pentagon and classify the company as a discontinued operation, the full-year forecast for the fiscal year ending March 2026 has been revised. Revenue and profit for the year attributable to owners of the parent have been reduced to reflect an expected impairment loss of ¥19.9 billion, while operating profit and other figures have been increased.

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Mixed performance
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Scale
199
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Revised forecast

Fiscal year ending March 2026 · Full yearPrevious forecast published 5 February 2026
Net Sales425,000→402,800million
-5.2%
Operating profit53,500→58,200million
+8.8%
Profit attributable to owners of the parent36,300→15,900million
-56.2%
Net income per share330.61→145yen and sen
-56.1%

The bar length represents the relative magnitude of change, based on the item that changed the most in this document.

Reason for the revision

Pentagon's results will no longer be recognized as part of continuing operations, the increase in the services business's share of revenue in the Electronics segment is expected to improve the cost ratio, selling, general and administrative expenses will be contained, and an impairment loss is expected to be recognized on fixed assets, including goodwill related to Pentagon.

Details and amount of extraordinary loss

Impairment loss on fixed assets, including Pentagon's goodwill: ¥19.9 billion (expected to be recognized)

Previous-period resultsBefore retrospective adjustment: revenue of ¥408,888 million, business profit of ¥49,184 million, operating profit of ¥31,275 million, profit before tax of ¥31,821 million, profit for the year attributable to owners of the parent of ¥20,305 million, and basic earnings per share of ¥180.66. After retrospective adjustment: revenue of ¥388,814 million, business profit of ¥50,898 million, operating profit of ¥49,918 million, profit before tax of ¥50,709 million, profit for the year attributable to owners of the parent of ¥20,305 million, and basic earnings per share of ¥180.66.
Dividend forecast revisionNo revision (there is no change to the dividend forecast)
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net Sales¥425,000 million → ¥402,800 million(-5.2%)
Operating profit¥53,500 million → ¥58,200 million(+8.8%)
Profit attributable to owners of the parent¥36,300 million → ¥15,900 million(-56.2%)
Net income per share330.61 yen and sen → 145 yen and sen(-56.1%)
Fiscal Period CoveredFiscal year ending March 2026
Period CoveredFull year
Publication date of previous forecast5 February 2026
Previous-period resultsBefore retrospective adjustment: revenue of ¥408,888 million, business profit of ¥49,184 million, operating profit of ¥31,275 million, profit before tax of ¥31,821 million, profit for the year attributable to owners of the parent of ¥20,305 million, and basic earnings per share of ¥180.66. After retrospective adjustment: revenue of ¥388,814 million, business profit of ¥50,898 million, operating profit of ¥49,918 million, profit before tax of ¥50,709 million, profit for the year attributable to owners of the parent of ¥20,305 million, and basic earnings per share of ¥180.66.
Reason for the revisionPentagon's results will no longer be recognized as part of continuing operations, the increase in the services business's share of revenue in the Electronics segment is expected to improve the cost ratio, selling, general and administrative expenses will be contained, and an impairment loss is expected to be recognized on fixed assets, including goodwill related to Pentagon.
Details and amount of extraordinary lossImpairment loss on fixed assets, including Pentagon's goodwill: ¥19.9 billion (expected to be recognized)
Dividend forecast revisionNo revision (there is no change to the dividend forecast)
Consolidated / non-consolidatedConsolidated
Items this document does not state (1)
Ordinary income

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Pentagon's results will no longer be recognized as part of continuing operations, the revenue contribution of the services business in the Electronics segment will increase and improve the cost ratio, selling, general and administrative expenses will be contained, and an impairment loss is expected to be recognized on fixed assets, including Pentagon's goodwill.

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding the Recognition of an Impairment Loss and Revision of the Full-Year Earnings Forecast | Kurita Water Industries Ltd. (6370) timely disclosure | Komori