Furukawa Electric's AI-driven profit surge and bold capacity bet
AI data-center demand lifts profit forecast Furukawa raised its full-year net profit forecast to 105 billion yen from 82 billion, as AI data-center demand boosts optical products. First-quarter net profit was 22.2 billion yen, 4.3 times last year's, showing the surge is real and already flowing through.
This is the core reason the stock is moving: a big profit upgrade driven by AI demand.
100 billion yen bet on optical fiber capacity Furukawa will invest 100 billion yen to expand optical fiber and cable production in the US, Brazil, Japan, and India, roughly doubling rollable ribbon cable capacity by fiscal 2028. Customers have already committed to long-term purchases, so this is a confident growth bet.
This shows the company is putting real money behind the AI demand story, which supports future growth.
Q1 profit triples, full-year outlook raised sharply First-quarter operating profit tripled to 25.4 billion yen, and the full-year operating profit target jumped to 123 billion yen from 95 billion. Revenue rose over 20% on data-center products, auto parts, higher copper prices, and price adjustments. The stock jumped 10% on the news.
This confirms the profit upgrade with actual quarterly numbers and explains the drivers behind it.
UACJ stake sale adds 22 billion yen one-time gain Furukawa raised its first-half net profit forecast to 58 billion yen, helped by a 22 billion yen gain from selling its UACJ shares. The sale cuts cross-shareholdings and frees up cash for growth investments, though it is a one-time boost, not recurring profit.
This is a new, separate boost to reported profit and shows the company is freeing up capital for growth.