Furukawa Electric Co., Ltd.

Business Details

Composed of two businesses: the Information & Communications Solutions business (optical fiber, optical cable, optical-related components, network equipment, etc.) and the Energy Infrastructure business (power cables, industrial wires, power transmission/distribution components, etc.). Its primary customer base consists of domestic and overseas data center/AI-related markets and demand for domestic ultra-high-voltage underground cables and renewable energy applications, with manufacturing and sales handled by the global optical fiber and cable business organization under Lightera Holding and group companies such as Furukawa Electric Metal Cable Co., Ltd.

Recent Overview

Net sales and operating profit increased significantly due to rapid data center demand growth and M&A

In FY2026 (ending March 2026), the Infrastructure segment achieved net sales to external customers of ¥363,941 million (up 20.0% year on year) and operating profit of ¥21,439 million (up 276.1% year on year), a substantial increase in both revenue and profit. In the optical fiber and cable business, a unified global structure was established under the "Lightera" brand, and expansion of sales in North America contributed to results. Furukawa Fitel Optical Components Co., Ltd. (formerly Fujitsu Optical Components Limited) was made a subsidiary in April 2025, and Furukawa Electric Submarine Cable Co., Ltd. was made a subsidiary in July 2025. Meanwhile, the company transferred all of its equity interest in a Chinese subsidiary (Shenyang Furukawa Cable Co., Ltd.), streamlining an unprofitable business. Impairment losses of ¥1,581 million were recorded, mainly related to business assets in China and the United States.

Key Products

Growth Drivers

• Increased demand for optical cables and optical-related components (rollable ribbon cable, MT ferrules, DFB laser diode chips, etc.) driven by the continued expansion of the data center and AI-related markets
• Efficient and rapid decision-making in the optical fiber and cable business under the unified global strategy of the "Lightera" brand, along with establishment of a sales expansion structure in North America
• Realization of photonics technology synergies through the acquisition of Furukawa Fitel Optical Components Co., Ltd. (world's top share in LN high-speed optical modulators)
• Strengthening of HVDC cable manufacturing capacity and capture of submarine cable demand for renewable energy through the acquisition of Furukawa Electric Submarine Cable Co., Ltd.
• Steady demand for replacement of domestic ultra-high-voltage underground cables and for submarine/underground cables for renewable energy
• Consolidation of the metal wire business (integration into Furukawa Electric Metal Cable Co., Ltd.) to consolidate market areas, strengthen competitiveness, and maximize synergy effects

Risks

• Integration risk during the transition period of the operating structure accompanying the global reorganization of the optical fiber and cable business (Lightera structure)
• Profit volatility risk due to variation in profitability of individual projects in the Energy Infrastructure business (there is a track record of recording product warranty provisions for large power projects)
• Impact on raw material costs and net sales due to fluctuations in copper ingot prices and foreign exchange rates
• Risk of earnings deterioration due to economic slowdown and intensifying price competition in the Chinese market (largely resolved through the transfer of equity in Shenyang Furukawa Cable Co., Ltd.)
• Risk of impairment losses arising in the Infrastructure segment (impairment losses of ¥1,319 million recorded in FY2026 (ending March 2026) on business assets in China and the United States)
• Risk of delays or cost overruns in HVDC cable manufacturing facility investment (scheduled to commence operation around 2030)