While Kurita Water Industries lowered its full-year forecast and expects approximately ¥23.6 billion in additional costs at its US subsidiary, METAWATER raised its earnings forecast and its share price fluctuated. Restructuring in the water business is progressing alongside growing semiconductor demand, tighter PFAS regulations and efforts to address ageing infrastructure.
On 29 October, Kurita Water Industries lowered its full-year operating profit forecast from ¥65.5 billion to ¥43.5 billion. The estimated cost of a large water treatment system for the electronics industry being installed by its US subsidiary exceeds the contract price due to delays in addressing the project, resulting in expected additional costs of approximately ¥23.6 billion. The share price fell to the limit-down level on the following day, the 30th, and was down more than 40% from its June high.
Meanwhile, on the same day, METAWATER raised its operating profit forecast from ¥15 billion to ¥17.5 billion, supported by strong performance at its overseas subsidiaries, and its share price rose to the limit-up level. While projects involving capital investment in the semiconductor industry are having an impact, the importance of profitability management for large-scale construction projects has once again come into focus.
As part of broader market trends, the Ministry of Economy, Trade and Industry approved TSMC’s plan to produce 3-nanometer products at its second Kumamoto plant. In the PFAS sector, the government indicated that the water quality standards for PFOS and PFOA in tap water are expected to be tightened in April 2026. In ageing infrastructure, an increasing number of sewer pipes have exceeded their statutory useful lives, the number of pipelines judged to require action has grown, and amendments to related regulations have progressed.
Industry restructuring is also accelerating. METAWATER is acquiring Suido Kiko through a TOB, the management integration of Mitsubishi Kakoki Kaisha and Tsukishima Holdings is progressing, and Nippon Chutetsukan and Kubota are moving toward a manufacturing joint venture. Following Kurita Water Industries, the source of the shock, and METAWATER, one of the winners, attention is turning to developments involving restructuring, pipelines, pumps and consultants in the semiconductor, PFAS, water supply and sewerage sectors.