Fuji Electric (6504) Q1 2026 earnings summary

Executive summary

• Net sales for the first quarter reached a record ¥247.9 billion, up 5% year-over-year, driven by strong performance in energy and industry segments and robust demand in plant, system, and energy-related operations.

• Operating profit rose to ¥18.1 billion, a 5% increase year-over-year, with an operating profit ratio of 7.3%, despite higher personnel and material costs.

• Profit attributable to owners of parent decreased by ¥0.6 billion year-over-year to ¥10.9 billion, mainly due to foreign exchange losses.

• The company reorganized its reporting segments to align with its medium-term management plan, enhancing focus on growth strategies.

• Upward revisions to full-year and half-year forecasts reflect robust demand and improved profitability, especially in data centers, renewable energy, and industrial applications.

Financial highlights

• Net sales increased by ¥11.5 billion year-over-year to ¥247.9 billion; operating profit rose by ¥0.8 billion to ¥18.1 billion; operating profit ratio remained at 7.3%.

• Ordinary profit decreased by ¥0.9 billion year-over-year to ¥17.3 billion, mainly due to FX losses.

• EPS for the quarter was ¥74.16, down from ¥80.34 in the prior year.

• Free cash flow was negative ¥10.6 billion, a decrease of ¥49.8 billion year-over-year, due to lower advances collected and higher payments.

• Higher sales and production volumes offset negative factors like rising fixed and raw material costs.

Outlook and guidance

• Upward revision of the six-month forecast: net sales to ¥534.0 billion (+¥15.0 billion), operating profit to ¥40.5 billion (+¥6.5 billion), and profit attributable to owners of parent to ¥23.5 billion (+¥4.5 billion).

• Full-year forecast for FY2025 revised upward: net sales expected at ¥1,155.0 billion (+1.3% from previous guidance), operating profit at ¥124.5 billion, and profit attributable to owners of parent at ¥85.5 billion.

• Forecasts reflect strong first-half performance; second-half outlook unchanged pending further market assessment.

• Assumptions include exchange rates of US$1=¥140, €1=¥154, RMB1=¥19.8 for the remainder of the year.

• Monitoring market conditions and customer investment timing for potential further revisions.