FUJIKURA COMPOSITES Inc.
5121・Prime Market・Rubber Products
Business
Fujikura Composites Inc. is a Tokyo Stock Exchange-listed company founded in 1901. The corporate group consists of the company, 16 subsidiaries, and 1 affiliated company, with three core businesses: "Industrial Materials" (handling Industrial Precision Rubber Parts and Pneumatic Control Equipment), "Coated Fabric Products" (handling rubber-coated fabrics and marine life-saving equipment), and "Sporting Goods" (handling Golf Carbon Shafts (VENTUS Series) and Outdoor Gear (Shoes, Apparel, etc.)). In addition to domestic factories (Iwatsuki, Odaka, Kazo, and Haramachi), the company has manufacturing and sales bases in China, Vietnam, and the United States, supplying products to a diverse range of industries including automotive, semiconductor, marine, and sports.
Business Model
The Industrial Materials segment secures stable earnings through made-to-order production of Industrial Precision Rubber Parts and Pneumatic Control Equipment for automobiles, housing equipment, and semiconductor manufacturing equipment applications. The Coated Fabric Products segment manufactures and sells high-performance rubber-coated fabrics and life-saving equipment leveraging specialized machinery and composite technologies. The Sporting Goods segment globally markets Golf Carbon Shafts (VENTUS Series) under the VENTUS brand, and has become a highly profitable revenue source, achieving an operating margin of 36.7% in FY2026 (ending March 2026). Intra-group logistics are handled by Toei Unyu, supporting cost efficiency.
Company Strengths
The Golf Carbon Shafts (VENTUS Series) has achieved the No. 1 usage rate on the US PGA Tour and major domestic men's and women's tours. In FY2026 (ending March 2026), the Sporting Goods segment's operating margin reached 36.7% (operating profit of ¥4,705 million), establishing itself as a high-value-added brand that drives earnings for the entire group.
As of the end of FY2026 (ending March 2026), the equity ratio stood at 76.2% (target: 60% or above), with cash and cash equivalents of ¥11,879 million. Free cash flow was secured at ¥3,836 million, maintaining a strong financial base with low reliance on interest-bearing debt. The company has sufficient financial capacity to fund capital expenditure, R&D, and dividends primarily through its own resources.
The company operates manufacturing and sales subsidiaries in China (Hangzhou, Anji), Vietnam (Haiphong), and the United States (California, Ohio). Since its founding in 1901, it has accumulated over 120 years of rubber and carbon composite processing technology, applying it across diverse fields such as automotive, semiconductor, life-saving equipment, and sports. The company invests ¥1,493 million annually in R&D expenses to continuously strengthen its technological foundation.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), net sales came in at ¥40,238 million (down 0.9% year on year), a slight decline, while on the profit side all indicators showed increases: operating profit of ¥4,838 million (up 4.7% year on year), ordinary profit of ¥5,104 million (up 5.1% year on year), and profit attributable to owners of parent of ¥3,987 million (up 6.7% year on year). As an external factor, sluggish demand in the Chinese and North American markets pushed down sales of Sporting Goods and Industrial Materials, while the company changed the foreign currency translation method for overseas subsidiaries (from spot rate to average rate during the period). The equity ratio improved from 72.0% to 76.2%, and comprehensive income increased substantially to ¥6,146 million (up 23.6% year on year). Looking at the trend over the past five fiscal years, profit levels have recovered and expanded for two consecutive periods following the decline in FY2024 (ended March 2024).
Growth Strategy
The strategy is built on three pillars: global expansion of Sporting Goods, profitability improvement in Industrial Materials, and enhanced shareholder returns.
The latest model, the '26 VENTUS TR Series,' will be rolled out globally across all regions, aiming to enhance brand recognition in the US, Asia, and domestic markets. Capital investment in the Sporting Goods segment (an increase in fixed assets of ¥839 million in FY2026 (ending March 2026)) will continue, strengthening the production system to expand profitability once demand recovers.
While capturing the recovery in orders for domestic automotive-related parts and housing equipment-related parts, the company will continue thorough manufacturing cost control and fixed cost reductions. Leveraging the recovery in capital investment related to lithium-ion battery manufacturing equipment parts, it aims to transition to a highly profitable structure that does not depend on sales scale. The 264.9% year-on-year increase in operating profit achieved in FY2026 (ending March 2026) demonstrates progress.
The segment turned from an operating loss in the prior period to an operating profit of ¥165 million in FY2026 (ending March 2026). The company will continue to capture strong orders for small vessel life rafts, increased replacement demand for life jackets, and additional orders for defense-related products to establish sustained profitability. The recovery in demand for electrical and electronic coated fabrics will also be leveraged as a tailwind.
Dividends will be paid targeting a dividend on equity ratio (DOE) of 4.0% or higher, with an annual dividend per share floor set at ¥54. The dividend is planned to increase to ¥76 (payout ratio of 37.4%) in FY2026 (ending March 2026) and to ¥86 (projected payout ratio of 42.6%) in FY2027 (ending March 2027). Share buybacks will also be conducted flexibly to improve capital efficiency and maximize shareholder value.
Last updated: July 19, 2026