Fuji Electric raises operating profit 40% to 59.8 billion yen in first half
Key Facts
Fuji Electric announced on October 29 results for the six months ended September 30, 2026, within its fiscal year ending in March 2027, reporting a 40% year-on-year increase in operating profit to 59.8 billion yen. Ordinary profit rose 38% to 57.6 billion yen, while net profit attributable to owners of the company increased 58% to 42.1 billion yen. Sales totaled 593.3 billion yen, up 9% from the same period, setting a first-half record. The results came as all three profit measures exceeded the company's previous revised forecasts, while sales were in line with expectations. The figures show broad profit growth, with a clear divide between segments that supported expansion and those that faced declines.
The energy and industry segments were the main drivers of sales and operating profit. The energy segment posted first-half sales of 196.4 billion yen and operating profit of 29.9 billion yen, increases of 30.3 billion yen in sales and 11.0 billion yen in operating profit year on year. The industry segment recorded sales of 226.8 billion yen and operating profit of 20.9 billion yen, up 21.4 billion yen and 9.9 billion yen, respectively, from the same period a year earlier. The company said sales growth reflected increased demand for facilities, systems and components in both segments. It linked this demand to investment in energy and data centers, as well as demand for industrial components. The gains in the two segments supported overall profit despite pressure in other areas.
By contrast, operating profit in the semiconductors segment fell to 6.4 billion yen from 9.0 billion yen in the first half of the previous fiscal year, although segment sales were nearly flat at 108.5 billion yen versus 108.7 billion yen. Profit in the food and beverage distribution segment declined to 5.1 billion yen from 5.8 billion yen, while sales fell to 50.8 billion yen from 52.4 billion yen. Fuji Electric said weak demand for semiconductors used in automobiles and vending machines weighed on profit. It added that personnel costs rose as it increased investment in human capital, while higher raw-material prices also had a negative effect. First-half performance therefore reflected more than gains in the energy segment: growth in energy and industry was offset by lower profitability in two other units.
The company placed the results in a market where investment in energy, manufacturing and data centers is continuing. It said investment across the three sectors remained strong, driven by spending on the green transition and emissions reductions, as well as increased demand for energy and semiconductors amid the spread of generative AI and digital technologies. At the same time, it cited continued increases in copper, silver and other raw-material prices due to tight supply-demand balances and investment fund flows. It also noted rising geopolitical risks, while higher raw-material prices added to personnel costs that weighed on profit. These factors provide context for the demand growth that benefited the energy and industry segments, and for the costs that limited its effect on profit. In the fiscal year ended March 31, 2026, Fuji Electric recorded record sales of 1,227.6 billion yen, up 9%, and operating profit rose to 136.6 billion yen.
Following the first-half results, Fuji Electric raised its sales forecast for the fiscal year ending March 31, 2027, by 4% to 1,350.0 billion yen, from a previous forecast of 1,300.0 billion yen. It also raised its forecast for operating profit by 7% to 168.0 billion yen and net profit attributable to owners of the company by 5% to 117.0 billion yen. The ordinary profit forecast rose 6% to 166.5 billion yen from 157.0 billion yen. The forecast revision followed operating, ordinary and net profit exceeding the company's revised first-half estimates, while sales remained in line with expectations. In the stock market, the shares closed at 13,385 yen on October 29, the day results were announced, and then at 12,355 yen on October 30. These closing prices show the stock's movement on the two days around the announcement, alongside the company's raised fiscal-year forecast.