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WATTS, First Half Ordinary Profit Unexpectedly Revised Upward by 3%

Fri Apr 10, 2026 3:30 pm JST Earnings

2735 WATTS CO., LTD. 【J-GAAP】

Earnings Report

WATTS CO., LTD. <2735> [TSE Std] announced its financial results after the market closed on April 10th (15:30). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending August 2026 (September 2025 to February 2026) increased 3.3% from the same period last year, reaching 0.89 billion yen, resulting in an increase in profits compared to the previous forecast of a 13.4% decrease.

Progress toward the full-year plan of 1.50 billion yen was 59.7%, almost the same as the five-year average of 57.9%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the consolidated ordinary profit for the March to August period (second half) is expected to grow 7.5% from the same period last year, reaching 0.60 billion yen.

In the most recent three-month period, from December to February (2Q), the consolidated ordinary profit amounted to 0.56 billion yen, an increase of 1.3% compared to the same period last year. The operating profit margin remained almost flat, changing from 3.6% in the same period last year to 3.7%.

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Actual Results

Accumulated Results 2nd Quarter
Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Progress Rate vs. First Half Announce Accounting Standards
Sep - Feb, 2023 30,255 743 749 436 32.9 61.0 Apr 10, 2024 J-GAAP
Sep - Feb, 2024 30,465 820 866 536 40.8 60.6 Apr 10, 2025 J-GAAP
Sep - Feb, 2025 31,275 857 895 495 37.4 59.7 Apr 10, 2026 J-GAAP
YoY +2.7% +4.5% +3.3% -7.6% -8.2%

First Half Results vs. Previous Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Sep - Feb, 2025 Guidance 31,000 750 750 450 33.9 7.50 Oct 10, 2025 J-GAAP
Sep - Feb, 2025 Results 31,275 857 895 495 37.4 7.50 Apr 10, 2026 J-GAAP
Revision Rate +0.9% +14.3% +19.3% +10.0% +10.3%

Current Period Guidance

Second Half Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Mar - Aug, 2025 31,113 599 563 334 25.3 12.50 Oct 10, 2025 J-GAAP
Mar - Aug, 2026 Guidance 31,725 643 605 405 30.5 12.50 Apr 10, 2026 J-GAAP
YoY +2.0% +7.3% +7.5% +21.3% +20.4%

Current Period Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Aug, 2024 61,257 1,246 1,228 904 68.5 20 Oct 10, 2024 J-GAAP
Aug, 2025 61,578 1,419 1,429 870 66.0 23 Oct 10, 2025 J-GAAP
Aug, 2026 Guidance 63,000 1,500 1,500 900 67.8 20 Oct 10, 2025 J-GAAP
YoY +2.3% +5.7% +5.0% +3.4% +2.7%

Quarterly Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Operating Profit Margin Announce Accounting Standards
Dec - Feb, 2024 15,470 553 559 345 26.2 3.6 Apr 10, 2025 J-GAAP
Mar - May, 2025 15,547 202 151 56 4.3 1.3 Jul 10, 2025 J-GAAP
Jun - Aug, 2025 15,566 397 412 278 21.1 2.6 Oct 10, 2025 J-GAAP
Sep - Nov, 2025 15,351 271 329 194 14.7 1.8 Jan 9, 2026 J-GAAP
Dec - Feb, 2025 15,924 586 566 301 22.7 3.7 Apr 10, 2026 J-GAAP
YoY +2.9% +6.0% +1.3% -12.8% -13.3%

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