Furukawa Electric Co., Ltd. (TSE: 5801), the Tokyo-based diversified maker of optical fiber, metal cable, automotive components and electronics and one of the world's largest optical fiber and cable producers, posted sharply higher FY2026 results (year ended March 31, 2026) under Japanese GAAP. Consolidated revenue rose 8.8% year-on-year to ¥1,307.6 billion, operating profit climbed 35.8% to ¥63.9 billion, ordinary profit jumped 56.4% to ¥75.9 billion, and profit attributable to owners of the parent surged 117.4% — more than doubling — to ¥72.5 billion.
Comprehensive income rose 53.8% to ¥85.4 billion. The operating margin came to 4.9%, and ROE improved to 19.1%. Basic EPS climbed to ¥1,030.17 from ¥473.36 a year earlier. The result was driven by a strong optical fiber business riding AI-data-center demand alongside a reorganization of the metal-cable operations.
'Lightera' optical rebrand rides AI data-center demand
The standout story of the year was Furukawa's reorganization and rebranding of its global optical fiber and cable operations under a single new brand, "Lightera." The company consolidated its overseas optical units — including the former OFS in the United States and FEL in Latin America — under a new holding company, Lightera Holding, to enable faster, integrated global management. The optical fiber business is riding strong demand from AI data centers, where surging compute buildouts require vast quantities of high-density optical fiber and cable. This shift, together with the new global structure, positioned Furukawa to capture accelerating hyperscale orders and was the principal engine behind the year's profit surge.
The metal-cable business was separately reorganized to sharpen its focus and profitability, reinforcing the broader earnings momentum. Together, the optical and metal-cable reorganizations lifted profit across the group, with net profit more than doubling year-on-year. On the balance sheet, total assets stood at ¥1,066.4 billion and net assets at ¥435.2 billion, while the equity ratio strengthened to 39.1% from 34.6%, and book value per share rose to ¥5,928.21. Operating cash flow was ¥28.1 billion, and cash at year-end stood at ¥70.5 billion.
Dividend raised, 1-for-10 split and interim dividend resumed
Furukawa raised its FY2026 annual dividend to ¥210.00 per share (paid as a year-end dividend only, with no interim), up from ¥120.00 the prior year, for a payout ratio of 20.4%. Looking to FY2027 (ending March 2027), the company plans a 1-for-10 common stock split effective July 1, 2026 and the resumption of an interim dividend, guiding for an annual dividend of ¥220.00 per share on a pre-split basis (¥110 interim + ¥110 year-end) — equivalent to ¥22.00 after the planned split. Management guides higher for FY2027 and frames the year around the Lightera-led optical growth strategy, with continued AI-data-center demand expected to underpin the optical fiber and cable franchise.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 1,307.6 | 1,201.8 | +8.8% |
| Operating profit (¥ billion) | 63.9 | 47.0 | +35.8% |
| Ordinary profit (¥ billion) | 75.9 | 48.5 | +56.4% |
| Net profit attrib. to owners (¥ billion) | 72.5 | 33.4 | +117.4% |
| EPS (¥) | 1,030.17 | 473.36 | +117.6% |
| Operating margin | 4.9% | 3.9% | +1.0pp |
| ROE | 19.1% | 9.4% | +9.7pp |
| Equity ratio | 39.1% | 34.6% | +4.5pp |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.