Fujikura Net Profit Jumps 72% on AI Data-Center Optical Fiber Demand

Record-breaking results lifted Fujikura's operating margin to 16.0% and ROE to 32.5%, with management raising the dividend payout target from 30% to 40% and outlining up to ¥300 billion of US/Japan capacity expansion.

Fujikura Sakura plant - optical fiber ribbon production facility Fujikura Ltd. · TSE Prime

Fujikura Ltd. (TSE Prime: 5803), the Tokyo-based diversified cable, optical fiber and electronics manufacturer, posted record FY2025 results (year ended March 31, 2026) under Japanese GAAP. Consolidated net sales rose 20.7% year-on-year to ¥1,182.4 billion, operating profit jumped 39.2% to ¥188.7 billion, ordinary profit climbed 45.4% to ¥199.5 billion, and profit attributable to owners of the parent surged 72.5% to ¥157.2 billion.

Comprehensive income more than doubled (+122.0%) to ¥203.2 billion. The operating margin expanded by 2.2pp to 16.0%, and ROE improved markedly to 32.5% from 24.4%. Basic EPS (retroactively adjusted for the 6-for-1 stock split effective April 1, 2026) came to ¥94.93 versus ¥55.05 a year earlier.

Information & Telecom does all the heavy lifting

By segment, the Information & Telecommunications division was the principal earnings driver. Sales surged 44.7% to ¥653.0 billion and segment operating profit jumped 65.7% to ¥152.7 billion on sustained demand for optical fiber cables and multi-fiber optical connectors used in hyperscale data centers, particularly in North America. The segment launched the world's first 13,824-fiber SWR®/WTC® product.

By contrast, the Electronics division weakened, with sales down 7.3% to ¥172.3 billion and operating profit collapsing 66.5% to ¥7.7 billion on supply chain disruptions, competition and a strong Thai baht. Automotive posted modest 1.3% sales growth to ¥179.4 billion with operating profit up 17.0% to ¥6.8 billion. Energy grew sales 8.1% to ¥157.0 billion with operating profit up 58.6% to ¥18.9 billion on a richer mix and derivative valuation gains tied to high copper prices.

Balance sheet strengthens; payout policy raised

Total assets grew to ¥969.5 billion from ¥830.3 billion, net assets rose to ¥593.2 billion, and the equity ratio lifted to 57.8% from 49.1%. The cash-flow-to-interest-bearing-debt ratio improved to 0.8 years (from 1.5), and the interest coverage ratio nearly doubled to 64.1×. Operating cash flow reached ¥132.9 billion; financing activities used ¥111.3 billion on loan repayments and dividends.

Fujikura raised its dividend payout policy target from 30% to 40% of consolidated net profit. The annual dividend for FY2025 was set at ¥225.00 per share (pre-split), versus ¥100.00 the previous year — a payout ratio of 39.5%. A 6-for-1 stock split was executed effective April 1, 2026.

FY26 outlook and the "offensive" mid-term plan

For FY2026 (ending March 2027), the company forecasts net sales of ¥1,243.0 billion (+5.1%), operating profit of ¥211.0 billion (+11.8%), ordinary profit of ¥218.0 billion (+9.3%), and net income attributable to owners of ¥156.0 billion (-0.7%). The annual dividend forecast is ¥38.00 per share post-split (¥19.00 interim + ¥19.00 year-end), a 40.3% payout ratio. Effective FY2026, Electronics and Automotive will merge into a new "Electronics & Electrical Systems" segment, and a new three-year "2028 Mid-Term Plan" will be disclosed in May 2026 — shifting strategic emphasis from "defensive" to "offensive selection and concentration", with up to ¥300 billion of combined U.S.-Japan investment to triple optical fiber cable production capacity.

Fujikura — FY2025 Key Financials (J-GAAP, consolidated)
MetricFY2025FY2024YoY
Net sales (¥ billion)1,182.4979.7+20.7%
Operating profit (¥ billion)188.7135.5+39.2%
Ordinary profit (¥ billion)199.5137.2+45.4%
Net profit attrib. to owners (¥ billion)157.291.1+72.5%
EPS (¥, post 6-for-1 split)94.9355.05+72.4%
Operating margin16.0%13.8%+2.2pp
ROE32.5%24.4%+8.1pp
Equity ratio57.8%49.1%+8.7pp

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.