Shipbuilding boom and a weaker yen
Furuno Electric Co., Ltd. (TSE: 6814), a maker of marine electronics such as radar, fish finders and navigation equipment, reported consolidated results for the first half of FY2/2027, the six months from March 1 to August 31, 2026, on October 9, 2026 under Japanese GAAP. Net sales rose 16.4% to ¥79,917 million, gross profit 21.7% to ¥35,942 million, operating profit 38.3% to ¥12,866 million and ordinary profit 35.5% to ¥13,781 million. Net profit attributable to owners of the parent fell 2.4% to ¥9,948 million, or ¥314.72 per share against ¥322.48; in the year-earlier half, income taxes had been reduced by a ¥1,744 million deferred-tax adjustment.
The company said new ship orders are running at roughly the pace of the record year 2007 and shipyards' order books keep growing. The yen averaged ¥157 to the dollar and ¥185 to the euro, about 5.1% and 13.6% weaker than a year earlier. The first half was the first of its Phase 3 medium-term plan, under which Furuno now targets sales of ¥180 billion and an operating margin, ROE and ROIC of at least 15% in FY2/2031.
Segments
Marine sales rose 13.0% to ¥67,794 million and segment profit 28.3% to ¥12,212 million, as sales for new merchant ships kept growing, above all in China where shipbuilding capacity is expanding, equipment upgrades on existing ships stayed high and maintenance services grew; pleasure-boat sales in the Americas were below last year. Industrial sales rose 34.3% to ¥9,342 million and profit rose to ¥822 million from ¥187 million: defence output rose on a large order backlog and ETC units and timing products sold well, while biochemical analyser sales fell on cost competition in China. Wireless LAN and handheld-terminal sales rose 69.2% to ¥2,643 million on school projects, with profit of ¥356 million against ¥9 million.
Balance sheet, dividend and outlook
Total assets rose 5.8% to ¥149,553 million and net assets 9.8% to ¥98,546 million, lifting the equity ratio to 65.6% from 63.2%. Furuno raised its interim dividend to ¥115 and plans a ¥95 year-end payment, for an annual total of ¥210, against the ¥160 it had forecast in April.
The full-year forecast issued on April 9, 2026 was raised: net sales of ¥158,000 million (+12.4%), up from ¥148,500 million; operating profit of ¥21,000 million (+29.3%), up from ¥17,000 million; ordinary profit of ¥22,000 million (+20.3%); and net profit of ¥17,000 million (+1.6%), up from ¥13,000 million.
| Metric | H1 FY2/2027 | H1 FY2/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 79,917 | 68,653 | +16.4% |
| Operating profit (¥ million) | 12,866 | 9,303 | +38.3% |
| Ordinary profit (¥ million) | 13,781 | 10,169 | +35.5% |
| Net profit attrib. to owners of parent (¥ million) | 9,948 | 10,190 | −2.4% |
| EPS (¥) | 314.72 | 322.48 | −2.4% |
| Marine — revenue (¥ million) | 67,794 | 59,982 | +13.0% |
| Marine — segment profit (¥ million) | 12,212 | 9,517 | +28.3% |
| Industrial — revenue (¥ million) | 9,342 | 6,958 | +34.3% |
| Industrial — segment profit (¥ million) | 822 | 187 | +339.8% |
| Wireless LAN & handheld terminals — revenue (¥ million) | 2,643 | 1,561 | +69.2% |
| Wireless LAN & handheld terminals — segment profit (¥ million) | 356 | 9 | +3,520.2% |
| Total assets (¥ million) | 149,553 | 141,364 | +5.8% |
| Net assets (¥ million) | 98,546 | 89,772 | +9.8% |
| Equity ratio | 65.6% | 63.2% | +2.4 pt |
| FY2/2027 guidance — revenue (¥ million) | 158,000 | — | +12.4% |
| FY2/2027 guidance — operating profit (¥ million) | 21,000 | — | +29.3% |
| FY2/2027 guidance — ordinary profit (¥ million) | 22,000 | — | +20.3% |
| FY2/2027 guidance — net profit (¥ million) | 17,000 | — | +1.6% |
| Annual dividend per share (¥) | 210.00 | 160.00 | +31.3% |
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.