Consolidated Financial Results for the Six Months Ended September 30, 2025 233KB

Company name: ORGANO CORPORATION Listing: Tokyo Stock Exchange Securities code: 6368

URL: https://www.organo.co.jp/english/

Representative: Masayuki Yamada, Representative Director and President

October 31, 2025

Inquiries: Minoru Ando, General Manager of Accounting Dept., Corporate Management and Planning

TEL: +81-3-5635-5111

Scheduled date to file semi-annual securities report: November 7, 2025

Scheduled date to commence dividend payments: December 1, 2025 Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for institutional investors and analysts)

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated financial results for the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025)

   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Six months ended September 30, 2025 September 30, 2024	Millions of yen 82,793 74,323	% 11.4 13.5	Millions of yen 17,378 11,480	% 51.4 46.1	Millions of yen 17,349 11,946	% 45.2 39.9	Millions of yen 11,528 8,134	% 41.7 46.9

      Note: Comprehensive income: Six months ended September 30, 2025 ¥11,678 million [29.0%]

      Six months ended September 30, 2024 ¥9,050 million [36.8%]

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      September 30, 2025	250.78	-
      September 30, 2024	176.97	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio
   As of September 30, 2025 March 31, 2025	Millions of yen	Millions of yen	%
   	194,947	128,638	66.0
   	194,396	121,194	62.2

   (Reference) Equity: As of September 30, 2025 ¥128,638 million As of March 31, 2025 ¥120,947 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	71.00	-	89.00	160.00
   Fiscal year ending March 31, 2026	-	95.00
   Fiscal year ending March 31, 2026 (Forecast)			-	95.00	190.00

   Note: Revisions to the forecast of cash dividends most recently announced: Yes

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

Note: Revisions to the earnings forecasts most recently announced: Yes

1. Significant changes in the scope of consolidation during the period: Yes Newly included: -

   Excluded: 1 company (PT Lautan Organo Water)

   Note: For more details, please refer to “Significant changes in the scope of consolidation during the period” on page 10 of the attached material.

2. Application of specific accounting for preparing the semi-annual consolidated financial statements: Yes

   Note: For more details, please refer to “Application of specific accounting for preparing the semi-annual consolidated financial statements” on page 10 of the attached material.

3. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

4. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of September 30, 2025	46,359,700 shares
      As of March 31, 2025	46,359,700 shares

   2. Number of treasury shares at the end of the period

      As of September 30, 2025	377,149 shares
      As of March 31, 2025	393,638 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Note: The Company has introduced an Officer Share Delivery Trust, and shares of the Company held by the Trust have been included in treasury shares excluded from the calculation of the number of treasury shares at the end of the period and the average number of shares outstanding during the period (cumulative from the beginning of the fiscal year).

• Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm

• Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements and others)

The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ substantially due to various factors. Please refer to “(3) Explanation regarding consolidated earnings forecasts and other forward-looking statements” in “1. Qualitative information regarding financial results for the semi-annual period” on page 4 of the attached material for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.

Index

1. Qualitative information regarding financial results for the semi-annual period 2

   1. Explanation regarding operating results 2

   2. Explanation regarding financial position 3

   3. Explanation regarding consolidated earnings forecasts and other forward-looking statements 4

2. Semi-annual consolidated financial statements and significant notes thereto 5

   1. Semi-annual consolidated balance sheet 5

   2. Semi-annual consolidated statement of income and semi-annual consolidated statement of comprehensive income 7

      Semi-annual consolidated statement of income 7

      Semi-annual consolidated statement of comprehensive income 8

   3. Semi-annual consolidated statement of cash flows 9

   4. Notes to semi-annual consolidated financial statements 10

Notes on premise of going concern 10

Notes on substantial changes in the amount of shareholders’ equity 10

Significant changes in the scope of consolidation during the period 10

Application of specific accounting for preparing the semi-annual consolidated financial

statements 10

Segment information, etc. 11

1. Qualitative information regarding financial results for the semi-annual period
   1. Explanation regarding operating results

      During the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025), the global economy showed signs of a gradual recovery overall, despite the impact of U.S. tariff policies and economic stagnation in some regions. Looking ahead, it remains necessary to pay close attention to geopolitical risks and the impact of protectionist policy trends and other factors in various countries on the economy.

      In the electronics industry, the Organo Group’s main market, demand for cutting-edge semiconductors related to generative artificial intelligence (AI) has continued to expand, and AI-related capital investment remains robust. On the other hand, demand for semiconductors other than cutting-edge products, such as power semiconductors, has continued to be sluggish due to factors including the slowdown in the growth of EVs (electric vehicles). In the general industry, such as pharmaceuticals and food, as well as electronics peripherals, and in the social infrastructure field, such as electric power/water supply and sewage, steady growth has been seen mainly driven by demand for maintenance services.

      Under these conditions, while promoting order-taking and delivery activities for large-scale projects in Japan and overseas, the Organo Group has advanced various measures, including expanding production and delivery capacities through the recruitment and training of engineers worldwide, strengthening its engineering capabilities through digital-driven operational efficiency improvements, promoting technology development and intellectual property strategies aligned with its business strategy, and reorganizing its domestic and overseas bases and networks to strengthen its customer relations. In addition, the Organo Group has also been working to strengthen its management foundation by reinforcing human capital, enhancing sustainability and governance, and renewing its core systems.

      As a result, for the six months ended September 30, 2025, orders received increased by 8.1% year on year to ¥100,281 million, net sales increased by 11.4% year on year to ¥82,793 million, operating profit increased by 51.4% to ¥17,378 million, ordinary profit increased by 45.2% to ¥17,349 million, profit attributable to owners of parent increased by 41.7% to ¥11,528 million, and the carry-over balance for order backlog as of September 30, 2025 was down 9.9% to ¥124,073 million.

      Results by segment are as follows.

      [Water Treatment Engineering Business Unit]

      • Orders received

        Orders received increased 8.9% year on year to ¥87,294 million. In the electronics industry, orders received increased, reflecting large-scale projects ordered for semiconductors in Taiwan, the U.S. and Europe as well as the robust performance of projects for solutions, such as facility-owned services and various maintenance services. Furthermore, in the general industry and the social infrastructure field, the demand for solutions projects such as various maintenance services remained strong, while orders received decreased due to a reactionary decline from large orders received in the same period of the previous fiscal year.

      • Net sales

        Net sales increased 14.0% year on year to ¥70,549 million. In the electronics industry, net sales increased, reflecting steady progress of construction work of semiconductor-related plant projects in Japan and Taiwan, as well as strong sales of solutions projects such as facility-owned services and various maintenance services. In the general industry, sales were strong for both plant and service solutions, which enabled us to maintain the same level of net sales as the same period of the previous fiscal year. In the social infrastructure field, net sales increased, mainly due to higher sales of solutions projects for nuclear power plants.

      • Operating profit

        Operating profit increased 60.9% year on year to ¥15,771 million. This was attributable to factors such as expanded net sales, mainly in the electronics industry, and growth in sales of solution projects with relatively high margin. In addition, the steady recording of sales from highly profitable plant projects and efforts to improve profitability, along with profit margin improvements achieved through cost reductions also contributed to the increase in operating profit.

        [Performance Products Business Unit]

      • Orders received/Net sales

        Orders received increased 3.2% year on year to ¥12,987 million and net sales decreased 1.6% year on year to ¥12,243 million. Despite the impact of streamlining low-margin transactions in the Food Products Division, sales of small-scale pure and ultrapure water production systems increased, and orders and sales of various divisions such as water treatment chemicals, filters, and functional materials also remained strong overall, which enabled us to maintain the same level of orders received and net sales as the same period of the previous fiscal year.

      • Operating profit

      Operating profit decreased 4.2% year on year to ¥1,607 million. Despite the factors such as growth in sales of relatively high-margin products such as water treatment chemicals and functional materials for the electronics industry, and improved profitability resulting from the streamlining of low-margin transactions in the Food Products Division, operating profit decreased slightly year on year due to an increase in selling, general and administrative expenses, primarily composed of personnel expenses and R&D expenses.

   2. Explanation regarding financial position

      Assets, liabilities and net assets

      Assets

      Assets as of September 30, 2025 amounted to ¥194,947 million, an increase of ¥551 million from the previous fiscal year end. This was mainly due to an increase of ¥8,561 million in inventories and an increase of ¥1,920 million in other current assets, despite a decrease of ¥6,903 million in notes and accounts receivable - trade, and contract assets and a decrease of ¥2,444 million in investments in leases.

      Liabilities

      Liabilities as of September 30, 2025 amounted to ¥66,309 million, a decrease of ¥6,892 million from the previous fiscal year end. This was mainly due to a decrease of ¥5,711 million in short-term borrowings and a decrease of ¥4,087 million in notes and accounts payable – trade, despite an increase of ¥3,920 million in long-term borrowings.

      Net Assets

      Net assets as of September 30, 2025 amounted to ¥128,638 million, an increase of ¥7,444 million from the previous fiscal year end. This was mainly due to an increase of ¥7,432 million in retained earnings resulting from the recording of profit attributable to owners of parent, despite being reduced due to dividends paid.

      Cash flows

      Cash and cash equivalents (hereinafter, “cash”) as of September 30, 2025 decreased by ¥220 million from the previous fiscal year end to ¥16,530 million.

      Cash flows from operating activities

      Net cash provided by operating activities for the six months ended September 30, 2025 was ¥7,155 million. This was mainly because there was an increase in cash from the recording of profit before income taxes, etc. while there were expenses related to purchase of inventories. (Net cash of ¥12,665 million was provided in the six months ended September 30, 2024.)

      Cash flows from investing activities

      Net cash used in investing activities for the six months ended September 30, 2025 was ¥1,434 million. This was mainly due to purchase of property, plant and equipment of ¥955 million. (Net cash of ¥621 million was used in the six months ended September 30, 2024.)

      Cash flows from financing activities

      Net cash used in financing activities for the six months ended September 30, 2025 was ¥5,820 million. This was mainly due to a net decrease in short-term borrowings of ¥6,916 million and dividends paid of

      ¥4,095 million, while there were proceeds from long-term borrowings of ¥6,900 million. (Net cash of

      ¥13,999 million was used in the six months ended September 30, 2024.)

   3. Explanation regarding consolidated earnings forecasts and other forward-looking statements

   In light of recent performance trends and other factors, the Company has revised the consolidated earnings forecasts, which were announced on August 4, 2025.

   Orders received are expected to exceed the previous forecast and amount to ¥185,000 million (up 2.8% from the previous forecast), mainly due to the fact that orders for solutions projects are expected to remain strong. Net sales are expected to be in line with the initial forecast, but profits are expected to exceed the previously announced forecast, mainly due to efforts to improve profitability, along with profit margin improvements achieved through cost reductions.

   Revisions to the consolidated earnings forecasts for the fiscal year ending March 31, 2026 (April 1, 2025 to March 31, 2026)

   	Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Basic earnings per share
   Previous forecast (A)	Millions of yen 175,000	Millions of yen 34,000	Millions of yen 34,500	Millions of yen 26,100	Yen 567.81
   Revised forecast (B)	175,000	36,000	36,000	27,000	587.32
   Change (B-A)	-	2,000	1,500	900
   Change (%)	-	5.9	4.3	3.4
   Reference: Consolidated results for the fiscal year ended March 31, 2025	163,269	31,120	31,639	24,150	525.37

2. Semi-annual consolidated financial statements and significant notes thereto

1. Semi-annual consolidated balance sheet

   Assets

   (Millions of yen) As of March 31, 2025 As of September 30, 2025

   Cash and deposits 16,751 16,530

Current assets

Notes and accounts receivable - trade, and contract assets

79,450 72,547

Liabilities

(Millions of yen) As of March 31, 2025 As of September 30, 2025

Current liabilities

Notes and accounts payable - trade 23,438 19,350

Electronically recorded obligations - operating 4,648 4,098

Short-term borrowings 18,877 13,165

Income taxes payable 5,042 6,059

Contract liabilities 2,564 3,445

Provision for product warranties 1,349 1,286

Provision for bonuses 2,161 2,533

Provision for share awards for directors (and

other officers)

103

43

Provision for loss on construction contracts 34 33

Total current liabilities 64,401 53,571

Other 6,180 3,553

Long-term borrowings 3,680 7,600

Non-current liabilities

Retirement benefit liability 4,984 4,967

Deferred tax liabilities 25 55

Total non-current liabilities 8,799 12,738

Other 110 114

Net assets

Total liabilities 73,201 66,309

Share capital 8,225 8,225

Shareholders’ equity

Retained earnings 100,982 108,415

Capital surplus 7,508 7,508

Total shareholders’ equity 115,969 123,510

Treasury shares (746) (639)

Valuation difference on available-for-sale

securities

256

234

Accumulated other comprehensive income

Remeasurements of defined benefit plans 1,323 1,261

Foreign currency translation adjustment 3,397 3,632

Non-controlling interests 246 -

Total accumulated other comprehensive income 4,978 5,128

Total net assets 121,194 128,638

Total liabilities and net assets 194,396 194,947

1. Semi-annual consolidated statement of income and semi-annual consolidated statement of comprehensive incomeSemi-annual consolidated statement of income

   (Millions of yen)

   	Six months ended	Six months ended
   	September 30, 2024	September 30, 2025
   	(From April 1, 2024 to	(From April 1, 2025 to
   	September 30, 2024)	September 30, 2025)
   Net sales	74,323	82,793
   Cost of sales	51,179	52,667
   Gross profit	23,143	30,125
   Selling, general and administrative expenses	11,663	12,747
   Operating profit	11,480	17,378
   Non-operating income
   Interest income	60	103
   Dividend income	22	8
   Foreign exchange gains	418	10
   Share of profit of entities accounted for using equity method	30	37
   Other	68	43
   Total non-operating income	601	204
   Non-operating expenses
   Interest expenses	128	134
   Loss on valuation of derivatives	-	87
   Other	7	11
   Total non-operating expenses	135	233
   Ordinary profit	11,946	17,349
   Extraordinary income
   Gain on sale of non-current assets	4	2
   Gain on sale of investment securities	724	88

   Total extraordinary income 728 131

   Gain on sale of shares of subsidiaries and associates

   – 40

   Extraordinary losses

   Loss on sale of non-current assets	-	0
   Loss on abandonment of non-current assets	8	9
   Total extraordinary losses	8	9
   Profit before income taxes	12,665	17,471
   Income taxes	4,519	5,942
   Profit	8,146	11,528
   Profit attributable to non-controlling interests	11	-
   Profit attributable to owners of parent	8,134	11,528

   Semi-annual consolidated statement of comprehensive income

   Six months ended September 30, 2024

   (From April 1, 2024 to

   September 30, 2024)

   (Millions of yen)

   Six months ended September 30, 2025

   (From April 1, 2025 to

   September 30, 2025)

   Profit 8,146	11,528
   Other comprehensive income
   Valuation difference on available-for-sale (585)	(23)
   Foreign currency translation adjustment 1,537	246
   Remeasurements of defined benefit plans, net of (48)	(61)
   Share of other comprehensive income of entities (0) accounted for using equity method	(11)
   Total other comprehensive income	904 150
   Comprehensive income	9,050 11,678
   Comprehensive income attributable to

   securities

   tax

   Comprehensive income attributable to non-

   controlling interests

   26

   -

   Comprehensive income attributable to owners of parent

   9,024 11,678

2. Semi-annual consolidated statement of cash flows

   (Millions of yen)

   	Six months ended	Six months ended
   	September 30, 2024	September 30, 2025
   	(From April 1, 2024 to	(From April 1, 2025 to
   	September 30, 2024)	September 30, 2025)
   Cash flows from operating activities
   Profit before income taxes	12,665	17,471
   Depreciation	871	926
   Increase (decrease) in provisions	226	350
   Increase (decrease) in retirement benefit liability	21	31
   Decrease (increase) in retirement benefit asset	(159)	(129)
   Interest and dividend income	(83)	(112)
   Interest expenses	128	134
   Foreign exchange losses (gains)	(222)	258

   Loss (gain) on valuation of derivatives (10) 87

Share of loss (profit) of entities accounted for using equity method

(30) (37)

1. Notes to semi-annual consolidated financial statements Notes on premise of going concern

   No items to report

   Notes on substantial changes in the amount of shareholders’ equity

   No items to report

   Significant changes in the scope of consolidation during the period

   The Company transferred part of its shareholding in the consolidated subsidiary PT Lautan Organo Water (hereinafter, “LOW”) to PT Lautan Air Indonesia, a subsidiary of PT Lautan Luas Tbk that is the Company’s partner in the joint venture LOW on April 11, 2025.

   With this transfer of shares, LOW ceased to be a consolidated subsidiary and has become an equity-method affiliate of the Company.

   Application of specific accounting for preparing the semi-annual consolidated financial statements

   Calculation of tax expenses

   The Company and some of its consolidated subsidiaries have reasonably estimated the effective tax rate after the application of tax effect accounting to the profit before income taxes for the fiscal year including the six months ended September 30, 2025, and tax expenses are calculated by multiplying profit before income taxes by this estimated effective tax rate. However, in cases where the calculation of tax expenses using such estimated effective tax rate yields a result that is not reasonable to a significant extent, the amount of significant difference other than temporary differences, etc. is added to or deducted from the profit before income taxes, and the result is multiplied by the statutory income tax rate.

   Segment information, etc.

   [Segment information]

   1. Six months ended September 30, 2024 (From April 1, 2024 to September 30, 2024)

      1. Information relating to net sales and profit by each reportable segment

         (Millions of yen)

         	Reportable Segment			Adjustment	Amount recorded in the semi-annual consolidated statement of income (Note)
         	Water Treatment Engineering Business Unit	Performance Products Business Unit	Total
         Net sales
         Sales to external customers	61,885	12,437	74,323	-	74,323
         Intersegment sales or transfers	0	182	182	(182)	-
         Total	61,885	12,620	74,505	(182)	74,323
         Segment profit	9,802	1,677	11,480	-	11,480

         Note: The figures for segment profit are based on operating profit, and there are no discrepancies with the operating profit shown in the semi-annual consolidated statement of income.

   2. Six months ended September 30, 2025 (From April 1, 2025 to September 30, 2025)

      1. Information relating to net sales and profit by each reportable segment

(Millions of yen)

Note: The figures for segment profit are based on operating profit, and there are no discrepancies with the operating profit shown in the semi-annual consolidated statement of income.