Organo's order book is filling much faster than its profit line. In the six months to September 2026, orders rose 70.8% to ¥171.3bn, while sales rose 14.3% to ¥94.6bn and operating profit fell 12.3% to ¥15.2bn, according to its interim earnings summary. Net profit attributable to owners of the parent fell 13.0% to ¥10.0bn.
Where the orders came from
The water-treatment engineering segment drove the gain. Its orders rose 79.4% to ¥156.6bn, with Organo citing several large electronics-industry projects in Taiwan and further large orders in the United States, Japan and China. The supplementary results deck shows Taiwan orders at ¥63.0bn, against ¥20.3bn a year earlier. Backlog stood at ¥175.8bn, up 41.7%.
Margins are the other half
Organo said the plant business earned a lower gross margin than a year ago, when it booked some high-margin plant projects. Personnel and IT spending also rose. Group operating margin was 16.1%, against 21.0% in the same period last year, a fall of 4.9 percentage points. Operating profit in the water-treatment engineering segment fell 15.8% to ¥13.3bn.
Guidance stays put
Organo kept its forecast for the year to March 2027 at ¥200bn in sales, ¥40bn in operating profit and ¥30bn in net profit. It expects a high level of orders, helped by more overseas electronics projects, a wider scope for its work on U.S. projects and some orders arriving earlier than planned. These projects should reach full-scale sales recognition from the following fiscal year, so the current-year outlook was not changed. The summary does not name customers or give margins on the new orders.