Furuno Electric (6814): FY2025 Results Summary — Record Highs for a Third Consecutive Year on Marine Business Strength

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FURUNO ELECTRIC CO., LTD. (TSE Prime: 6814), a manufacturer of maritime and industrial electronic products that commercialized the world’s first Fish Finder in 1948, reported record-high results for the third consecutive year in Fiscal Year 2025 (ending February 28, 2026). Note: in FURUNO’s materials, “FY” indicates the fiscal year ending February 28 (29) of the succeeding year, so FY2025 is the fiscal year ended February 28, 2026. Both the Marine business and the Industrial business achieved double-digit sales growth, with profit growth driven primarily by increased sales in the Marine business. The following is based on the company’s “Fiscal Year 2025 Financial Result Briefing Materials” dated April 9, 2026.

Consolidated Results (Full-Year Actual)

Net sales rose 10.8% year-over-year to 140,616 million yen, and operating profit rose 23.3% to 16,246 million yen. Ordinary profit increased 29.2% to 18,291 million yen, and profit attributable to owners of parent increased 46.1% to 16,735 million yen. The company describes these as record-high results for 3 consecutive years, with profit margins improving as the increase in gross profit exceeded the increase in SG&A, and net income margin over 10% with deferred tax during the first half. Average exchange rates for the year were 150 yen per USD and 169 yen per EUR.

Item (Millions of yen)	FY2025	FY2024	Year-over-Year (amount)	Year-over-Year (percentage)
Net Sales	140,616	126,953	+13,663	+10.8%
Gross Profit	58,338 (41.5%)	52,969 (41.7%)	+5,368	+10.1%
SG&A Expenses	42,091 (29.9%)	39,787 (31.3%)	+2,303	+5.8%
Operating Profit	16,246 (11.6%)	13,181 (10.4%)	+3,064	+23.3%
Ordinary Profit	18,291 (13.0%)	14,158 (11.2%)	+4,132	+29.2%
Profit Attributable to Owners of Parent	16,735 (11.9%)	11,457 (9.0%)	+5,277	+46.1%

On the balance sheet, total assets stood at 141,364 million yen and the equity ratio improved from 58.4% to 63.2%. ROE was 20.7% (17.2% in FY2024) and ROIC was 15.5% (12.7%). Cash flow from operating activities was 21,373 million yen, and free cash flow was 18,094 million yen.

Segment Results

The Marine business posted net sales of 1,211 100M yen (+11.5% year-over-year) and segment profit of 167.6 100M yen (+34.3 100M yen), on continued strong demand for merchant vessels, strong sales of a strategic product for high-end pleasure boats despite an overall weak pleasure boats market, and higher maintenance services sales globally. By region, net sales were: Japan 243 100M yen (+6.5%), Americas 154 100M yen (+29.2%), Europe 388 100M yen (+8.9%), and Asia 354 100M yen (+15.2%). The Industrial business recorded net sales of 158 100M yen (+11.3%) and segment profit of 7.8 100M yen (+2.9 100M yen); by product, ITS/GNSS was 88 100M yen (+18.8%), Healthcare 18 100M yen (-28.0%), and Defense Equipment 55 100M yen (+22.6%), with a significant sales increase in defense equipment in 4Q after recovering from the impact of a transition to a new production management system. Wireless LAN Systems had net sales of 33 100M yen (-10.5%) and segment profit of 1.3 100M yen (-0.7 100M yen), on lower sales of wireless LAN access points for education due to a weak demand environment.

Segment (Unit: 100 Millions of Yen)	Net Sales (FY2025)	YoY	Segment Profit (FY2025)	YoY (amount)
Marine Business	1,211	+11.5%	167.6	+34.3
Industrial Business	158	+11.3%	7.8	+2.9
Wireless LAN Systems	33	-10.5%	1.3	-0.7

Fiscal Year 2026 Forecast

For Fiscal Year 2026, FURUNO forecasts net sales of 148,500 million yen (+5.6%), operating profit of 17,000 million yen (+4.6%), ordinary profit of 17,000 million yen (-7.1%), and profit attributable to owners of parent of 13,000 million yen (-22.3%). The company expects the Marine business to maintain the same sales volume as the last fiscal year with steady demand despite global constraints on newbuild capacity, and the Industrial business to increase sales mainly in defense equipment. The decrease in net profit margin reflects a decrease in non-operating income (subsidy revenue, etc.) and the expiration of tax benefits, but ROE is expected to remain over 10%. Exchange rate assumptions are 153 yen per USD and 183 yen per EUR. The company notes that the forecast does not factor in uncertainties such as fluctuations in crude oil prices resulting from the escalating situation in the Middle East, rising raw material prices, and supply chain disruptions.

Item (Millions of yen)	Fiscal Year 2026 Forecast	Fiscal Year 2025 (Actual)	Year-over-Year (percentage)
Net sales	148,500	140,616	+5.6%
Operating profit	17,000 (11.4%)	16,246 (11.6%)	+4.6%
Ordinary profit	17,000 (11.4%)	18,291 (13.0%)	-7.1%
Profit attributable to owners of parent	13,000 (8.8%)	16,735 (11.9%)	-22.3%

By segment, the FY2026 forecast calls for Marine business net sales of 1,268 100M yen with segment profit of 172.0 100M yen, supported by positive foreign exchange impact (especially in Europe), continuous robust demand for merchant vessels, and strong maintenance services sales globally. The Industrial business is forecast at net sales of 179 100M yen and segment profit of 11.0 100M yen on steady sales of GNSS products and defense equipment, and Wireless LAN Systems at net sales of 35 100M yen and segment profit of 1.0 100M yen.

Shareholder Returns

The FY2025 annual dividend was 160 yen per share (75 yen at the 2nd quarter and 85 yen at the end of term), for a payout ratio of 30.2%, up from 110 yen for FY2024. For FY2026, the company forecasts an annual dividend of 160 yen (80 yen at the 2nd quarter and 80 yen at the end of term), a payout ratio of 38.9% — the dividend is maintained at 160 yen despite the forecast decrease in profit attributable to owners of parent.

(Unit: Yen)	2nd Quarter	End of Term	Full Year	Payout Ratio
FY 2025	75	85	160	30.2%
FY 2026 Forecast	80	80	160	38.9%

Medium-Term Plan / Topics

The materials point to FURUNO’s Mid-Term Management Plan for fiscal years 2026–2028, covering the review of the Phase 2 Mid-Term Management Plan and an overview of the FY26–28 plan. Among the topics highlighted: FURUNO’s autonomous navigation system, developed in collaboration with the Nippon Foundation’s unmanned vessel project MEGURI2040, was installed ahead of schedule on a car carrier ordered by NYK Line, and the project’s demonstration vessel, the remote island passenger ferry “Olympia Dream Seto,” passed the national vessel inspection on December 5, 2025, to commence commercial operations as the world’s first scheduled passenger ferry utilizing autonomous navigation capabilities equivalent to Level 4 autonomous driving. The company was also certified as a KENKO Investment for Health stock and, for the eighth consecutive year, as a Health and Productivity Management Organization (White 500).

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.