Fujikura's Profit Soars 168.5% on Data Center Demand

Fujikura Ltd. reported a substantial 168.5% year-over-year increase in net profit for the first half of fiscal 2027, reaching ¥180.3 billion, as robust demand from the data center market fueled significant sales growth. Overall sales climbed 55.2% year-over-year to ¥867.4 billion, demonstrating a marked acceleration in the company’s top-line performance.

The primary driver of this growth was the information and communication segment, which saw sales jump 91.6% to ¥581.5 billion and operating profit surge 194.8% to ¥217.7 billion. This performance was attributed to strong investment in data centers and successful, rapid-delivery of optical components. While the electronics segment experienced a 6.2% decline in sales to ¥809 billion due to changing product mixes in the smartphone market, the automotive segment saw a 23.3% increase in sales to ¥1,063 billion, remaining roughly stable in operating profit. The real estate segment also contributed, with sales increasing 1.5% to ¥56 billion due to rental income from the ‘Deep River Galleria’ redevelopment project.

Cash flow from operations improved significantly, reaching ¥102.3 billion, an increase of ¥892 billion year-over-year. This allowed Fujikura to maintain a strong cash position with ¥239.4 billion in cash and equivalents at the end of the period, an increase of ¥895 billion from the previous year. Investment activity saw an outflow of ¥21.1 billion, largely due to capital expenditures. The company also declared an interim dividend of ¥40 per share, payable December 2nd to shareholders of record as of November 30th.

The significant increase in profits and sales demonstrates Fujikura’s ability to capitalize on the growing demand for data center infrastructure and optical components. While smartphone-related revenue declined, the overall positive trend suggests a strategic shift toward higher-growth markets is proving successful. The company’s strong cash position provides financial flexibility for future investments and potential acquisitions, positioning it to further benefit from the ongoing expansion of the information and communication sector.