Enhanced Q1 Results due to increased demand, boosting H1 forecast; raises Annual Profit Projections
Organo Corporation Reports Strong First-Half Growth and Revised Profit Outlook
Japanese water treatment technology company, Organo Corporation, has announced a significant increase in net profit and sales for the first quarter of 2025, as well as revised profit outlooks for the following periods.
For the six-month period to September 30, 2024, Organo Corporation recorded a net profit of JPY 8.134 billion, or JPY 176.97 per basic share, with sales of JPY 74.323 billion. However, for the three-month period to June 30, 2025, the net income was JPY 3.642 billion, or JPY 79.25 per basic share.
The company has now revised its net profit outlook for the 12-month period to March 31, 2026, from JPY 24.200 billion to JPY 26.100 billion. This upward revision is mainly due to the impact of cost reduction and the improved first-quarter result. The new income per basic share projection for the same period is JPY 567.81, lower than the previous guidance of JPY 526.48.
In a positive development, Organo Corporation has also revised up its guidance for the first half of 2025, expecting a net income of JPY 9.700 billion. The income per basic share for the first half of 2025 is now projected to be JPY 211.03. Operating income for the same period was JPY 6.953 billion.
The company's sales growth is primarily attributed to increased demand from the electronics industry. For the full year, Organo aims to maintain its sales outlook at JPY 175 billion.
Key factors contributing to this growth include earlier-than-expected timing of orders for large-scale plant projects in the electronics industry, especially in Taiwan. This has accelerated sales and construction progress overseas in the first half of the fiscal year, boosting revenue. Cost reductions and improved profitability in plant projects have also enhanced operating profit beyond initial forecasts.
The electronics industry’s rising demand for Organo’s machinery and plant solutions underpins this growth, reflecting the broader expansion of the electronics manufacturing sector overseas and the need for advanced production equipment.
Organo aims to pay a total annual dividend of JPY 170 per share, higher than the previous year's JPY 160 per share. The company maintains its sales outlook for the 12-month period to March 31, 2026, at JPY 175 billion.
The previous sales for the 12-month period to March 31, 2025, were JPY 163.269 billion. For the first quarter of 2025, Organo posted sales of JPY 38.110 billion.
In conclusion, Organo Corporation's increasing sales and net profit are tightly linked to the electronics industry's investment in large-scale plant projects, as well as corporate efforts to improve operational efficiency and reduce costs. The company’s sales growth rate is outperforming the average growth forecast for the Japanese machinery industry, indicating competitive strength in its market segment.
In the light of Organo Corporation's strong first-half growth, there is a significant opportunity for financial investment within the business sector, particularly in the technology industry that shows promising growth due to increased demand for Organo's machinery and plant solutions. This growth trend is expected to continue, with the company aiming to pay a higher annual dividend than the previous year, demonstrating a solid return on investment in this context.
