Furukawa Electric (5801) Q2 2026 earnings summary

Executive summary

• Net sales for H1 FY25 rose 7.1% year-over-year to JPY 610.7 billion, with operating profit up 10.3% to JPY 19.4 billion and ordinary profit up 8% to JPY 20.5 billion.

• Profit attributable to owners increased 15.7% year-over-year to JPY 13.4 billion.

• Full-year forecasts for FY25 remain unchanged, with operating profit expected to rise by JPY 5.9 billion year-over-year.

• Manufacturing capacity for data center-related products and cooling systems is being expanded to meet growing demand.

Financial highlights

• H1 FY25 net sales: JPY 610.7 billion (+7% YoY); operating profit: JPY 19.4 billion (+10% YoY); ordinary profit: JPY 20.5 billion (+8% YoY); profit attributable to owners: JPY 13.4 billion (+16% YoY).

• Operating margin improved to 3.2% in H1 FY25 from 3.1% in H1 FY24.

• Extraordinary income of JPY 0.4 billion and extraordinary loss of JPY 1.5 billion recorded in H1 FY25.

• Full-year FY25 forecast: net sales JPY 1,200.0 billion, operating profit JPY 53.0 billion, profit attributable to owners JPY 36.0 billion.

• Comprehensive income for H1 FY25 was JPY 21.6 billion, down 41.6% year-over-year.

Outlook and guidance

• Full-year forecasts remain unchanged despite external challenges, with stable growth expected in data center and functional products.

• Dividend forecast for FY25 is JPY 120 per share, with a payout ratio of 23.5%.

• Basic policy targets a 30% payout of profit attributable to owners.

• Basic EPS forecast for FY25 is JPY 511.13.