Fujikura (5803) Q1 2025 earnings summary

Executive summary

• Achieved record-high profits at all stages for Q1 FY2025, with operating income nearly doubling year-over-year and surpassing initial first-half projections.

• Net sales for Q1 FY2025 rose 14.8% year-over-year to ¥218.3B, with operating income up 94.5% to ¥24.5B and profit attributable to owners up 72% to ¥19.1B.

• Telecommunication Systems led growth, driven by data center demand and favorable forex, with operating income 1.5x higher year-over-year.

• Electronics saw sales decline but profit rose 1.6x year-over-year due to data center HDD demand, improved mix, and forex.

• Automotive Products returned to profitability with improved productivity and cost optimization.

Financial highlights

• Net sales reached ¥218.3B, up 15% year-over-year; operating income ¥24.5B, up 94%.

• Net income per share for Q1 FY2025 was ¥69.29, up from ¥40.29 in Q1 FY2024.

• Ordinary income reached ¥26.1B (+67% year-over-year); net income attributable to owners was ¥19.1B (+72%).

• Extraordinary income of ¥1.4B from sales of cross-shareholdings; extraordinary loss of ¥0.8B.

• Total assets as of June 30, 2024, were ¥756.4B, with net assets at ¥388.1B.

Outlook and guidance

• Full-year FY2025 net sales forecast at ¥870B, up 8.8% year-over-year; operating income forecast at ¥89B, up 28.1%.

• Profit attributable to owners projected at ¥60B for FY2025, a 17.6% increase year-over-year.

• 1H and full-year forecasts revised upward, expecting continued Telecommunication Systems growth in 2Q.

• Record ordinary income projected for third consecutive year; record net income for fourth consecutive year.

• Dividend forecast increased by ¥10 to ¥65/share for FY2025.