FURUKAWA CO.,LTD.
5715・Prime Market・Nonferrous Metals
Business
Furukawa Co., Ltd. traces its roots to the Furukawa zaibatsu, founded in 1875, and is now a diversified group built on two pillars: the Machinery Business (Industrial Machinery, Rock Drill, Unic) and the Materials Business (Metals, Electronics, Chemical Products). The group comprises 31 subsidiaries and 9 affiliated companies, offering a broad product lineup ranging from infrastructure-related pumps, crushers, and bridges to rock excavation machinery, cranes, electrolytic copper and electrolytic gold produced through custom smelting, and semiconductor materials and electronic components. Its major customers span diverse industries including construction, mining, semiconductors, and electronics, and it operates sales and production sites both domestically and overseas. In April 2026, the company made Earth Technica Co., Ltd. a consolidated subsidiary, strengthening its crusher business.
Business Model
In the Machinery business, the company generates revenue not only from product sales but also from engineering-type business that integrates design, manufacturing, and construction management, as well as from stock business such as maintenance services and support programs (FD-CARE). In the Materials business, the company procures raw ore from overseas and sells Electrolytic Copper and Electrolytic Gold produced through smelting outsourced to affiliated companies, while also manufacturing and selling high-purity electronic materials and copper-based Chemical Products. The Real Estate business (Muromachi Furukawa Mitsui Building (COREDO Muromachi 2), etc.) complements this structure by providing stable earnings.
Company Strengths
Since its founding in 1875, the company has accumulated technologies spanning mine development, machinery, and materials. With eight segments covering Industrial Machinery, Rock Drill, Unic, Metals, Electronics, and Chemical Products, it achieved net sales of ¥211,081 million in FY2026 (ending March 2026). Its diversified structure, which limits dependence on any single market, enhances resilience to economic fluctuations.
In the Rock Drill segment, the company has established sales subsidiaries in North America, Europe, Southeast Asia, Africa, India, South Korea, and other regions, achieving increased shipments of Hydraulic Crawler Drills to North America and Africa in FY2026 (ending March 2026). The Unic segment also has production sites in Thailand and China, achieving increased shipments of cranes to Asia, building a global sales and production framework.
At the end of FY2026 (ending March 2026), the equity ratio stood at 54.1%, with interest-bearing debt of ¥57,323 million resulting in a debt-equity ratio of 0.4x and an interest-bearing debt/EBITDA multiple of 3.5x. The company achieved the financial targets of its Medium-Term Management Plan 2025 ahead of schedule, recording an ROE of 9.2%. It is simultaneously implementing reductions in cross-shareholdings, share buybacks (cumulative total of ¥13,129 million in the third phase), and dividend increases.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), sales reached ¥211,081 million (up 4.9% YoY) and operating profit reached ¥11,299 million (up 15.7% YoY), achieving the highest level in the past five periods. As an external factor, the rise in copper prices (average of USD10,816/ton during the period) drove increased revenue in the Metals segment (¥103,067 million, up ¥10,683 million YoY), and equity in earnings of affiliates also increased significantly to ¥3,110 million (from ¥620 million in the previous period), causing ordinary profit to surge to ¥13,733 million (up 41.5% YoY). Meanwhile, profit attributable to owners of parent decreased to ¥12,777 million (down 31.4% YoY). The main reason was that gains on sales of investment securities, which totaled ¥17,077 million in the previous period, amounted to only ¥7,223 million in the current period. In the Machinery business, decreased sales and profit in the Industrial Machinery segment weighed on results, leading to an overall decline in sales and profit for the segment. For FY2027 (ending March 2027), sales are forecast to increase to ¥235,700 million, but operating profit is expected to decline to ¥9,000 million (down 20.3% YoY), as deterioration in consignment profit/loss in the Metals segment and the lapse of extraordinary gains are expected to weigh on performance.
Growth Strategy
Portfolio enhancement through M&A and resource concentration in the machinery business, and integration of Earthtechnica
Acquired 60% of issued shares from Kawasaki Heavy Industries for ¥7,020 million, making it a consolidated subsidiary effective April 1, 2026. Consideration of integration with the crusher business within the Industrial Machinery segment has begun, aiming to optimize sales, technology, and production systems, strengthen cost competitiveness, and achieve sustainable growth through overseas business expansion. Expects net sales of ¥21,200 million and operating profit of ¥1,000 million for FY2027 (ending March 2027).
Continued increase in shipments of hydraulic breakers and crawler drills for North America and hydraulic crawler drills for Africa. For FY2027 (ending March 2027), net sales in the Rock Drill segment are projected at ¥38,600 million (up ¥2,175 million year on year), and in the Unic segment at ¥31,200 million (up ¥1,636 million year on year) driven by expanded crane sales to Southeast Asia. Continued promotion of building up maintenance service revenue through the FD-CARE model.
Continued sale of cross-shareholdings (gain on sale of ¥7,223 million in FY2026 (ending March 2026)), share buybacks (¥8,070 million) and cancellations (¥9,459 million) were implemented. Equity ratio improved significantly to 54.1%, and the market-value-based equity ratio rose to 50.7% (from 28.8% in the previous period). Net assets per share reached ¥4,539.80, realizing an increase in shareholder value. The policy of maintaining a total return ratio on consolidated equity of 3% or more as a benchmark is continued.
Promoting increased demand for Aluminum Nitride Ceramics for semiconductor manufacturing equipment (Electronics segment net sales projected at ¥7,900 million for FY2027 (ending March 2027)) and expanding demand for Copper Oxide for AI server package substrates (Chemical Products segment net sales projected at ¥10,400 million). Sales of High-Purity Metallic Arsenic for GaAs semiconductors also remain solid. The recovery of the semiconductor market and expansion of AI investment are functioning as external tailwinds.
Last updated: July 19, 2026