Morgan Stanley Furukawa Electric (5801.T): Business Briefing on Metal Solutions, Automotive Systems and Optical Solutions
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Morgan Stanley published a business briefing on Furukawa Electric, covering its three core divisions: Metal Solutions, Automotive Systems, and Optical Solutions. The Metal Solutions segment is projected to achieve 5% revenue growth in fiscal 2026, supported by rising copper prices and stable demand for automotive wiring harnesses.
The Automotive Systems division faces pressure from the electric vehicle transition, which is eroding traditional wiring harness demand. However, growth in high-voltage harnesses and battery components, which expanded 20%, is helping offset this decline. The Optical Solutions segment is experiencing robust growth driven by data center demand for optical modules, with fiscal 2026 revenue expected to increase 15%.
At the company level, Furukawa targets fiscal 2026 revenue of 1.2 trillion yen with an operating margin of 8%. The capital expenditure plan allocates 200 billion yen cumulatively from fiscal 2026 through 2028, primarily directed toward expanding optical and automotive systems capacity.
Shareholder returns remain a priority, with the fiscal 2026 dividend projected at 120 yen per share, representing a 10% increase from fiscal 2025. The report did not specify a particular rating or target price but detailed the strategic direction and financial trajectory of each business unit.