FURUNO ELECTRIC CO., LTD.

Business Details

The flagship business of the Furuno Electric Group, manufacturing and selling Navigation Equipment, Fishery Equipment, Radio Communication Equipment, and other products. Manufactured by the Company and its domestic and overseas manufacturing subsidiaries, and deployed globally through a network of sales subsidiaries in Europe, the U.S., Asia, and Japan. The business covers the commercial shipping, fishing, pleasure boat, and workboat markets, with a business philosophy of "Lifecycle Support" that covers the entire lifecycle of a vessel, from equipment sales for newly built ships through to Maintenance Services. This is the core segment, accounting for approximately 85% of consolidated net sales.

Recent Overview

In Q1 FY2027 (ending February 2027), net sales rose sharply to ¥32,564 million and profit to ¥5,736 million

In Q1 FY2027 (ending February 2027) (March to May 2026), the Marine Equipment Business achieved substantial increases in both net sales and profit, with net sales of ¥32,564 million (up 18.0% year on year) and segment profit of ¥5,736 million (up 45.5% year on year). Sales of equipment for newly built vessels in China continued to increase, and demand for replacement of existing vessel equipment and Maintenance Services also remained strong. In Europe, sales of equipment for existing commercial vessels remained at high levels, and Maintenance Services and equipment for pleasure boats also performed well. In the Americas, sales for pleasure boats fell below the prior-year period, but sales of strategic products contributed. The applicable exchange rates were ¥156 to the US dollar (a depreciation of approximately 1.6% year on year) and ¥184 to the euro (a depreciation of approximately 14.3% year on year).

Key Products

Growth Drivers

• Continued increase in sales of equipment for newly built vessels due to shipbuilders' high order backlogs driven by demand for alternative-fuel vessels, etc. (particularly in China)
• Increase in equipment sales driven by rising replacement demand for existing vessels (maintaining high levels particularly in Europe and Japan)
• Expansion of demand for Maintenance Services leveraging the global service network (strong in Europe, Asia, and Japan)
• Revenue contribution in the Americas from sales of strategic products for pleasure boats
• Continued increase in sales of equipment for newly built commercial vessels in the Asian market (particularly China)
• Expansion of high-value-added services utilizing digital technology and remote monitoring
• Effect of increased yen-converted overseas sales due to the weak yen (against the US dollar and euro)

Risks

• Weakness in the North American pleasure boat market (sluggish demand for small and mid-sized boats due to rising loan interest rates and inflation, though signs of bottoming out are emerging recently)
• Risk of energy supply constraints, price surges, and supply chain disruption due to uncertainty in the Middle East situation
• Impact of export regulation trends in China on sales of equipment for newly built vessels
• Continued impact on the supply chain from tight supply-demand conditions for materials, particularly semiconductor memory
• Foreign exchange fluctuation risk (the majority of net sales are overseas, and fluctuations in the US dollar and euro affect results)
• Risk of fluctuation in the number of new vessel orders (currently at high levels, but with risk of decline due to market fluctuations)
• Risk of demand fluctuation in the fishing market in Japan and Europe