Furukawa Electric (5801) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales and profit reached their highest H1 levels since FY2001, supported by higher data center-related product sales.

• FY2027 forecasts were raised after H1 results and improved business conditions; full-year operating profit is forecast at ¥136.0 billion.

• H1 FY2027 net sales were ¥737,691m, operating profit ¥57,618m and profit attributable to owners of parent ¥58,781m, all higher YoY.

Financial highlights

• H1 net sales were ¥737.7 billion, up 20.8% YoY; operating profit was ¥57.6 billion, up 201.1%.

• Ordinary profit rose 220.3% YoY to ¥64.9 billion; parent-attributable profit increased 357.3% to ¥58.8 billion.

• H1 operating margin was 7.8% vs. 3.1% YoY; ordinary profit margin was 8.8% vs. 3.3%, and net profit margin was 8.0% vs. 2.1%.

• Gross profit was ¥143,494m vs. ¥102,452m; SG&A increased to ¥85,875m from ¥83,318m.

• Comprehensive income reached ¥54,548m, up 153.8% YoY.

Outlook and guidance

• FY2027 forecast: net sales ¥1,570.0 billion, operating profit ¥136.0 billion, ordinary profit ¥155.0 billion and parent-attributable profit ¥118.0 billion.

• Forecast increases vs. prior guidance were ¥40.0 billion for sales, ¥13.0 billion for operating profit, ¥12.0 billion for ordinary profit and ¥13.0 billion for net profit.

• Full-year operating margin is forecast at 8.7%; H2 operating profit is forecast at ¥78.4 billion, vs. ¥44.7 billion in FY25 H2.

• FY2027 basic EPS forecast is ¥167.71; annual dividend forecast is ¥22 per share post-split, unchanged from the latest announcement.

• FY2028 operating profit target is ¥170.0 billion, with FY2027 operating profit expected to approach it.