Furukawa Electric raised its earnings forecasts for the first half and full year of fiscal 2027 and announced plans for approximately ¥100 billion in global investment and a US$500 million investment in its Indian joint venture. The company plans to significantly expand optical fiber and cable production capacity by around 2028. Its share price rose 10.7%.
Furukawa Electric raised its earnings forecasts for the first half and full year of fiscal 2027 while announcing a global investment plan of approximately ¥100 billion. It also outlined plans to significantly expand optical fiber and cable production capacity by around 2028.
The company disclosed plans to invest US$500 million in its Indian joint venture and will address demand for data centers and generative AI infrastructure, supported by long-term customer purchase commitments, its relationship with Lightera, and technology partnerships with Japanese and US partner companies. This is expected to drive the transformation of its Optical Solutions business.
The upward revisions and large-scale investment plan are viewed as core elements of the investment story, with attention focused on their impact on the company's capital discipline and expected returns. At the same time, the way the new wave of investment will affect demand and equity-method income is cited as a risk factor to monitor.