Fujikura (5803) Q2 2025 earnings summary

Executive summary

• 1H FY2024 saw record-high sales, operating profit, and ordinary profit, with operating profit up 79% year-over-year, driven by strong demand in Telecommunication Systems and favorable forex effects.

• Net sales for the six months ended September 30, 2024, rose 14% year-over-year to ¥447.5B, with net profit attributable to owners up 14% to ¥28.7B.

• All major business segments except FPC posted significant profit improvements; FPC recorded a ¥7.3B impairment loss due to currency effects and tough market conditions.

• Sales, operating profit, and ordinary profit exceeded 1H forecasts, but net profit fell short due to extraordinary losses in FPC.

Financial highlights

• 1H FY2024 net sales: ¥447.5B (+14% YoY), operating profit: ¥55.1B (+79% YoY), ordinary profit: ¥52.2B (+53% YoY), net profit attributable to owners: ¥28.7B (+14% YoY).

• Net profit per share: ¥104.21; operating margin improved to 12.3% from 7.9% YoY.

• Free cash flow for 1H FY2024 was ¥25.3B, up ¥6.9B YoY, reflecting strong business performance.

• Extraordinary losses totaled ¥9.8B, mainly from FPC impairment.

• Comprehensive income for the period was ¥20.5B, down 57.9% YoY.

Outlook and guidance

• FY2024 full-year net sales forecast raised to ¥880B (+10% YoY), operating profit to ¥104B (+50% YoY), and net profit to ¥62B (+22% YoY), all record highs.

• Net profit per share for FY2024 is expected at ¥224.77.

• Dividend forecast increased to ¥67/share (up from ¥55/share in FY2023), reflecting improved earnings.

• Telecommunication Systems expected to drive growth, supported by ongoing AI-driven data center demand.