Noritz Lifts Earnings on Eco Products and Overseas Restructuring Despite Flat Sales

Noritz ( (JP:5943) ) just unveiled an announcement.

Noritz, in the second year of its three-year “V-plan 26” medium-term reform program, reported 2025 net sales of ¥202.0 billion, essentially flat year on year, while sharply improving operating income by 79.5% to ¥4.3 billion and ordinary income by 54.9% to ¥5.5 billion, even as net profit fell 23.4% to ¥3.3 billion. The company’s strategy centers on shifting its business structure away from a heavy dependence on domestic residential water heaters and on mitigating overseas risks, including exposure to China’s sluggish real estate market.

The domestic business delivered sales of ¥136.7 billion, up 2.4%, and segment income of ¥2.1 billion, up 55.5%, driven by price revisions, better cost ratios and robust demand for eco-friendly offerings such as the new natural refrigerant hybrid water heater HP HB R290 and high-efficiency units aligned with Japan’s Top Runner standard. Premium kitchen appliance models like the PROGRE series and rising maintenance contracts for commercial water heaters also contributed to higher domestic sales and earnings.

Overseas, sales declined 5.0% to ¥65.3 billion, but segment income more than doubled to ¥2.1 billion as Noritz tightened costs in China and achieved profitability in North America on strong tankless and high-efficiency water heater sales across residential and commercial categories. Growth in Australia’s tankless and heat pump water heaters and the development of new Noritz-branded water purifier products in Southeast Asia underpinned the company’s efforts to diversify growth drivers, supporting its goal of improving profitability and geographic balance despite top-line pressure.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen2144.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

More about Noritz

Noritz Corporation is a Japan-based manufacturer of water heaters, kitchen appliances and related equipment, with a core focus on residential-use gas and hybrid water heaters and an expanding portfolio of environmentally friendly and high value-added products. The company operates both domestically and overseas, seeking to diversify beyond its traditional residential water heater base and reduce reliance on the Chinese market while cultivating growth in regions such as North America, Australia and Southeast Asia.

Average Trading Volume: 109,196

Technical Sentiment Signal: Buy

Current Market Cap: Yen109.8B

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