Furuno Electric (6814) Q1 2026 earnings summary

Executive summary

• Net sales rose 11.0% year-over-year to ¥31,296 million for the three months ended May 31, 2025, driven by strong Marine business performance and robust demand for merchant vessels and maintenance services.

• Operating profit increased 30.8% year-over-year to ¥3,438 million, with profit growth outpacing SG&A expense increases tied to investments in human resources and digital transformation.

• Profit attributable to owners of parent surged 175.7% year-over-year to ¥3,531 million, aided by a decrease in tax expenses due to higher deferred tax assets.

• Growth was driven by strong performance in the Marine Business, while Industrial and Wireless LAN segments faced declines.

• The company is in the final year of its mid-term management plan, focusing on profitability and sustainable growth.

Financial highlights

• Gross profit grew 12.9% year-over-year to ¥13,544 million, with gross margin improving from 42.6% to 43.3%.

• Ordinary profit rose 24.9% to ¥3,918 million year-over-year.

• Basic earnings per share jumped to ¥111.75 from ¥40.54 a year earlier.

• Comprehensive income was ¥2,712 million, down 2.5% year-over-year due to negative foreign currency translation adjustments.

• Capital investments increased 42.6% year-over-year to ¥1,452 million.

Outlook and guidance

• Full-year forecast remains unchanged: net sales of ¥127,500 million (+0.4% YoY), operating profit of ¥11,500 million (-12.8% YoY), and profit attributable to owners of parent of ¥9,000 million (-21.4% YoY).

• Dividend forecast for FY2026 is ¥110 per share, unchanged from the previous year.

• Management expects continued strong demand in the Marine business, especially for merchant vessels and maintenance services.

• Ongoing investments in digital transformation and human resources are anticipated to support future growth.