Metawater Co., Ltd. (TSE: 9551) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under J-GAAP. Revenue rose 17.2% year-on-year to a record ¥209,844 million, while operating profit climbed 21.2% to ¥12,879 million. Ordinary profit jumped 32.4% to ¥13,175 million, and net profit attributable to owners of the parent surged 33.3% to a record ¥9,136 million from ¥6,852 million. Basic EPS reached ¥209.30 versus ¥157.06, and ROE improved to 10.7% from 8.9%. Comprehensive income rose 3.5% to ¥11,346 million.
Record top and bottom line
FY3/2026 marked fresh records for both revenue and net profit. Revenue accelerated from the prior year's +8.2% growth to +17.2%, and the profit ramp was even steeper down the income statement: operating profit advanced 21.2% (versus +7.3% a year earlier), while ordinary profit and net profit — which had been roughly flat or lower in the prior year — rebounded to gains of 32.4% and 33.3% respectively. The result reflects firm domestic demand for the renewal and upgrade of aging Japanese water and sewage facilities, where Metawater is a market leader.
Engineering-led water and sewage franchise
Metawater is one of Japan's leading water- and wastewater-infrastructure engineering companies. It designs, builds (EPC), and operates and maintains (O&M) water- and wastewater-treatment plants and equipment for municipalities, and provides digital and operating services across Japan's water utilities. With Japanese utilities facing decades of pipe and plant renewal, plus a structural push toward concession-style operating contracts and digital plant management, Metawater's combination of equipment, EPC, and recurring O&M revenue underpins the record top line.
Two U.S. acquisitions broaden the footprint
During the year Metawater acquired two U.S. companies — Schwing Bioset, Inc. and Revinu, Inc. — and newly consolidated both, expanding its biosolids and sludge-treatment and broader water business in North America. The moves extend Metawater's reach beyond its Japanese core into the larger U.S. market and add capabilities in sludge and biosolids processing, an area of growing regulatory and environmental focus. The two newly consolidated businesses contributed to the step-up in consolidated revenue during the year.
Solid balance sheet and cash generation
Total assets stood at ¥220,292 million and net assets at ¥94,150 million, for an equity ratio of 40.6% and book value per share of ¥2,050.35. Operating cash flow came in at ¥15,132 million, comfortably ahead of operating profit and supporting both the dividend increase and the M&A program, while period-end cash and equivalents reached ¥35,683 million. ROE of 10.7% — up from 8.9% — pushed the company into double-digit returns on equity.
Dividend raised to ¥70; FY27 guides to double-digit growth
The FY3/2026 annual dividend was raised to ¥70.00 per share (¥35.00 interim + ¥35.00 year-end) from ¥50.00, with a payout ratio of 33.4%. For FY3/2027, management plans a further increase to ¥80.00 annual (¥40.00 interim + ¥40.00 year-end). Full-year FY3/2027 guidance points to revenue of ¥240,000 million (+14.4%), operating profit of ¥15,000 million (+16.5%), ordinary profit of ¥14,500 million (+10.1%), and net profit attributable to owners of ¥10,000 million (+9.5%), with EPS of ¥229.04. The outlook signals continued double-digit revenue growth as Japan's water-infrastructure renewal cycle and the newly added U.S. operations carry into the new year.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥M) | 209,844 | 179,094 | +17.2% |
| Operating profit (¥M) | 12,879 | 10,626 | +21.2% |
| Ordinary profit (¥M) | 13,175 | 9,951 | +32.4% |
| Net profit attrib. to owners (¥M) | 9,136 | 6,852 | +33.3% |
| Basic EPS (¥) | 209.30 | 157.06 | +33.3% |
| ROE | 10.7% | 8.9% | +1.8pp |
| Annual dividend (¥) | 70.00 | 50.00 | +40.0% |
| FY27 revenue guidance (¥M) | 240,000 | — | +14.4% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.