Furuno Electric (6814) Q2 2026 earnings summary

Executive summary

• Achieved record-high first half results, with net sales for the six months ended August 31, 2025, rising 9.3% year-over-year to ¥68,653 million, driven by strong Marine business sales and robust demand for merchant vessels in both newbuilds and retrofits.

• Operating profit increased 27.5% to ¥9,303 million, and profit attributable to owners of parent more than doubled to ¥10,190 million due to a temporary reduction in tax rate.

• The company is in the final year of its Phase 2 Mid-term Management Plan and is preparing new growth targets for Phase 3, to be disclosed in early 2026.

• Upward revision of full-year forecasts, aiming for all-time high sales and profits.

Financial highlights

• Net sales rose 9.3% year-over-year to ¥68,653 million in the 2nd quarter.

• Operating profit increased 27.5% to ¥9,303 million; ordinary profit up 35.3% to ¥10,169 million.

• Profit attributable to owners of parent surged 101.1% to ¥10,190 million; basic earnings per share doubled to ¥322.48.

• Gross margin improved to 43.0% from 42.1% year-over-year; gross profit increased 11.7% to ¥29,534 million.

• SG&A expenses rose 5.7% due to investments in HR and digital transformation.

Outlook and guidance

• Full-year net sales forecast revised upward by ¥10,000 million to ¥137,500 million.

• Operating profit forecast raised by ¥5,000 million to ¥17,500 million; profit attributable to owners of parent up by ¥6,500 million to ¥15,500 million.

• Full-year forecast for FY2026: net sales of ¥137,500 million (up 8.3%), operating profit of ¥16,000 million (up 21.4%), ordinary profit of ¥17,500 million (up 23.6%), and profit attributable to owners of parent of ¥15,500 million (up 35.3%).

• Basic earnings per share forecasted at ¥490.49 for the full year.

• Dividend forecast increased to ¥150 per share, maintaining a payout ratio above 30%.