Furuno Electric (6814) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 16.4% YoY to ¥79,917 million and operating profit increased 38.3% to ¥12,866 million.

• Profit attributable to owners of parent declined 2.4% YoY to ¥9,948 million despite higher sales and operating profit.

• Marine remained the largest business; Industrial and Wireless LAN Systems / Handheld Terminal also grew sales and segment profit.

Financial highlights

• Gross profit increased 21.7% YoY to ¥35,942 million; gross margin rose to 45.0% from 43.0%.

• SG&A rose 14.1% to ¥23,075 million; operating margin increased to 16.1% from 13.6%.

• Ordinary profit rose 35.5% to ¥13,781 million; attributable profit was ¥9,948 million, down 2.4%, and basic EPS was ¥314.72 versus ¥322.48.

• Comprehensive income was ¥11,486 million versus ¥10,020 million; operating cash flow was ¥6,964 million versus ¥8,506 million, with cash and cash equivalents of ¥25,949 million.

• R&D expenses rose 12.6% to ¥3,387 million; capital investments declined 4.5% to ¥2,105 million, while depreciation increased 11.0% to ¥2,037 million.

Outlook and guidance

• FY ending February 2027 forecast: net sales ¥158,000 million, operating profit ¥21,000 million, ordinary profit ¥22,000 million, attributable profit ¥17,000 million, and basic EPS ¥537.80.

• Versus prior forecasts, net sales increased ¥9,500 million, operating profit ¥4,000 million, ordinary profit ¥5,000 million, and attributable profit ¥4,000 million.

• Revised segment forecasts: Marine sales ¥134.8 billion and operating profit ¥21.1 billion; Industrial ¥18.6 billion and ¥1.3 billion; Wireless LAN ¥4.4 billion and ¥0.1 billion.

• FY2027 dividend forecast rose to ¥210 per share, comprising ¥115 for the second quarter and ¥95 at year-end; payout ratio is 39.0%, consistent with a ~40% total shareholder return policy.

• FY2030 targets: net sales ¥180.0 billion, operating profit margin at least 15%, and ROE and ROIC at least 15%.