Interim report
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepan cy between this translated document and the Japanese original, the original shall prevail. October 9, 2026 Consolidated Financial Results for the Six Months Ended August 31, 2026 (Under Japanese GAAP) Company name: FURUNO ELECTRIC CO., LTD. Listing: Tokyo Stock Exchange Securities code: 6814 URL: https://www.furuno.co.jp/ Representative: Yukio Furuno President and CEO Inquiries: Yutaka Wada Director, Managing Executive Officer and CFO Telephone: +81-798-63-1017 Scheduled date to file semi-annual securities report: October 9, 2026 Scheduled date to commence dividend payments: November 10, 2026 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for institutional investors) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the six months ended August 31, 2026 (from March 1, 2026 to August 31, 2026) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % August 31, 2026 79,917 16.4 12,866 38.3 13,781 35.5 9,948 (2.4) August 31, 2025 68,653 9.3 9,303 27.5 10,169 35.3 10,190 101.1 Note: Comprehensive income For the six months ended August 31, 2026: ¥ 11,486 million [ 14.6 %] For the six months ended August 31, 2025: ¥ 10,020 million [ 17.0 %] Basic earnings per share Diluted earnings per share Six months ended Yen Yen August 31, 2026 314.72 - August 31, 2025 322.48 - (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share As of Millions of yen Millions of yen % Yen August 31, 2026 149,553 98,546 65.6 3,103.27 February 28, 2026 141,364 89,772 63.2 2,826.61 Reference: Equity As of August 31, 2026: ¥ 98,102 million As of February 28, 2026: ¥ 89,345 million 2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended - 75.00 - 85.00 160.00 February 28, 2026 Fiscal year ending - 115.00 February 28, 2027 Fiscal year ending February 28, 2027 (Forecast) - 95.00 210.00 Note: Revisions to the forecast of cash dividends most recently announced: Yes
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3. Consolidated financial result forecasts for the fiscal year ending February 28, 2027 (from March 1, 2026 to February 28, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 158,000 12.4 21,000 29.3 22,000 20.3 17,000 1.6 537.80 Note: Revisions to the financial result forecast most recently announced: Yes For details of revisions to the consolidated financial results forecasts, please refer to “Notice Concerning Revisions to the Consolidated Financial Results Forecast and the Dividend Forecast (Increase in Dividends)” released today (October 9, 2026) * Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of August 31, 2026 31,894,554 shares As of February 28, 2026 31,894,554 shares (ii) Number of treasury shares at the end of the period As of August 31, 2026 282,050 shares As of February 28, 2026 285,730 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended August 31, 2026 31,610,379 shares Six months ended August 31, 2025 31,601,130 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters - Cautionary note concerning forward-looking statements The financial results forecast and other forward -looking statements contained herein are based on information available to the Company as of the date of publication of this document. Actual results may differ from these forecasts due to various factors going forward. For the assumptions, etc. used in the financial results forecasts, please refer to “1. Qualitative Information on Se mi-annual Financial Results, (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information” on page 4 of the attached documents. - Method of obtaining supplementary briefing materials The Company plans to hold a financial results briefing for institutional investors on Monday, October 19, 2026. The supplementary briefing materials on financial results will be posted on the Company’s website on Friday, October 9, 2026.
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Table of Contents - Attachments 1. Qualitative Information on Semi-annual Financial Results....................................................................... 2 (1) Explanation of Operating Results ....................................................................................................... 2 (2) Explanation of Financial Position ....................................................................................................... 4 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ... 4 2. Semi-annual Consolidated Financial Statements and Primary Notes ........................................................ 5 (1) Semi-annual Consolidated Balance Sheet ............................................................................................. 5 (2) Semi-annual Consolidated Statements of Income and Comprehensive Income ................................... 7 (3) Semi-annual Consolidated Statement of Cash Flows ............................................................................ 9 (4) Notes to Semi-annual Consolidated Financial Statements .................................................................. 10 (Notes on going concern assumption) .......................................................................................... 10 (Notes in case of significant changes in shareholders’ equity) ..................................................... 10 (Notes on Semi-annual Consolidated Statement of Cash Flows) ................................................. 10 (Segment information, etc.) ............................................................................................................ 11
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- 2 - 1. Qualitative Information on Semi-annual Financial Results (1) Explanation of Operating Results During the six months ended August 31, 2026, the global economy remained uncertain with signs of a slowdown emerging in some regions amid rising energy prices caused by heightened instability in the Middle East and the resulting impact on supply chains. The U.S. economy remained resilient, driven by expanding capital investment supported by robust AI-related demand and the wealth effect from rising stock prices, although the growth rate slowed as rising energy prices weighed on consumer sentiment . The European economy maintained positive growth, supported by favorable employment conditions, increased public investment, and AI - and defense - related demand, while personal consumption weakened amid sluggish growth in real income due to rising energy prices. The Chinese economy saw solid exports, particularly of AI-related goods and automobiles; however, the economy slowed as consumption and investment remained sluggish due to a slump in the real estate market, deteriorating employment conditions, and the fading effects of government trade-in subsidies. The Japanese economy showed signs of weakness due to soaring resource and energy prices stemming from heightened instability in the Middle East, a partial slowdown in exports and production, and a decline in capital investment. However, the economy maintained a moderate recovery trend, supported by easing supply constraints through the procurement of alternative sources of crude oil and other commodities, improving income conditions underpinned by wage growth, resilient service consumption, and support from external demand. Amid the current economic climate, the FURUNO Group is promoting the management initiatives aimed at sustainable growth under its long-term management vision for FY2030, “FURUNO GLOBAL VISION ‘NA VI NEXT 2030.’” Guided by our business vision, “Achieving better safety, security, and comfort to foster a society and sea navigation that considers the needs of people and the environment” and our human resources and corporate culture vision of “V ALUE through GLOBALIZATION and SPEED”, we are advancing strategies to achieve these goals. FY2026 marks the first year of Phase 3 of the Mid-term Management Plan. We position Phase 3 as a three-year period during which we will leverage the capabilities gained through the achievement of record performance and invest proactively to build a foundation for future growth, while accelerating strategic initiatives, and are promoting a transformation toward a business structure less susceptible to market fluctuations. We will also make active investments in management resources, including human resources, in order to achieve sustainable growth. Furthermore, in order to leverage the foundation for growth to be built during the three years of Phase 3 to achieve further growth, we have set new management targets for FY2030: net sales of ¥180.0 billion, an operating profit margin of 15% or higher, and ROE and ROIC of 15% or higher . We have also formulated a growth strategy to achieve these targets. Regarding the markets in which the FURUNO Group operates, in the merchant vessels market in the Marine Business, ship prices, which had remained high, declined slightly , but are currently on an upward trend again . Orders for new ships have been running at nearly the same pace as in the record year of 2007, and shipbuilders’ order backlogs continued to increase. The market for fishing vessels remained generally sluggish. In the pleasure boat market, demand was sluggish, particularly for small and medium -sized boats in North America, as loan interest rates when purchasing boats and prices remained high . However , the market is showing signs of bottoming out. In the Industrial Business, the volume of domestic automobiles sold in the Intelligent Transportation System (ITS)/Global Navigation Satellite System (GNSS) market continued to recover. In addition, demand for mobile phone base stations remained solid, supported by the development and enhancement of 5G networks. In the healthcare market, demand for the installation of machines such as IVDs (in -vitro diagnostics equipment) remained weak, particularly in China. In the defense equipment business, the domestic defense-related market expanded due to an increase in the defense budget. In the domestic educational ICT market for the Wireless LAN Systems/Handheld Terminal Business, projects to upgrade communication infrastructure equipment related to ICT development have increased.
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- 3 - As a result, in the six months ended August 31, 2026, the Company reported consolidated net sales of ¥79,917 million (up 16.4% year on year) and gross profit of ¥35,942 million (up 21.7% year on year). Operating profit was ¥12,866 million (up 38.3% year on year), ordinary profit ¥13,781 million (up 35.5% year on year), and profit attributable to owners of parent ¥9,948 million (down 2.4% year on year). The average yen to U.S. dollar and yen to euro exchange rates applied in the six months ended August 31, 2026 were USD 1=JPY 157 and EUR 1=JPY 185, respectively, and compared to the same period of the previous fiscal year, the yen depreciated by approximately 5.1% against the U.S. dollar and approximately 13.6% against the euro. Business performance by segment is as follows. Segment profit is based on operating profit. (i) Marine Business In the Marine Business, sales to new merchant vessel building projects continued to increase especially in China, where shipbuilding capacity is being expanded. This increase was backed by the shipbuilders’ high level of construction work already acquired , reflecting the demand for alternatively fueled vessels. Furthermore, equipment sales remained solid and sales from maintenance services increased thanks to the high level of replacement demand for equipment of existing vessels and firm demand for maintenance services. In the Americas, while sales for pleasure boats declined from the same period of the previous fiscal year, sales of strategic products continued to contribute to solid overall performance compared with past levels. In Europe, sales of equipment for existing merchant vessels primarily remained at a high level, while sales from maintenance services also remained strong. In Asia, sales of equipment for newly built merchant vessels continued to increase, primarily in China, and maintenance services were also solid. In Japan, sales of equipment for merchant vessels remained at a high level, and maintenance services were also strong. As a result, in the Marine Business, net sales were ¥67,794 million (up 13.0% year on year) and segment profit was ¥12,212 million (up 28.3% year on year). (ii) Industrial Business In the Industrial Business, sales of biochemical analyzers decreased in the Healthcare segment due to intensified price competition primarily in the Chinese market . In the ITS/GNSS segment , sales of time synchronization products to overseas customers were s olid, while sales of automotive ETC systems remained strong. In the defense equipment business, production output increased, underpinned by a high level of order backlog. As a result, in the Industrial Business, net sales were ¥9,342 million (up 34.3% year on year) and segment profit was ¥822 million (up 339.8% year on year). (iii) Wireless LAN Systems/Handheld Terminal Business In the Wireless LAN Systems/Handheld Terminal Business, sales of wireless LAN access points continued to increase, primarily due to an increase in projects in the educational market. As a result, in the Wireless LAN Systems/Handheld Terminal Business, net sales were ¥2,643 million (up 69.2% year on year) and segment profit was ¥356 million (up 3,520.2% year on year). (iv) Others Others sales amounted to ¥137 million (down 8.5% year on year) and segment loss was ¥40 million (a segment loss of ¥88 million was reported in the same period of the previous fiscal year).
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- 4 - (2) Explanation of Financial Position Total assets at the end of the six months ended August 31, 2026 increased by 5.8% from the end of the previous fiscal year to ¥149,553 million. This was mainly due to an increase of ¥2,174 million in cash and deposits. Total liabilities at the end of the six months ended August 31, 2026 decreased by 1.1% from the end of the previous fiscal year to ¥51,006 million. This was mainly due to a decrease of ¥1,000 million in long-term borrowings. Net assets at the end of the six months ended August 31, 2026 increased by 9.8% from the end of the previous fiscal year to ¥98,546 million. This was mainly due to an increase of ¥7,261 million in retained earnings. As a result, the equity-to-asset ratio rose from 63.2% at the end of the previous fiscal year to 65.6%. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information As for the consolidated financial results forecast, there have been revisions to the full-year consolidated financial results forecast and dividends forecast announced in the “Consolidated Financial Results for the Fiscal Year Ended February 28, 2026,” released on April 9, 2026. For details, please refer to the “Notice Concerning Revisions to the Consolidated Financial Results Forecast and the Dividend Forecast (Increase in Dividends),” released today.
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- 5 - 2. Semi-annual Consolidated Financial Statements and Primary Notes (1) Semi-annual Consolidated Balance Sheet (Millions of yen) As of February 28, 2026 As of August 31, 2026 Assets Current assets Cash and deposits 24,283 26,458 Notes and accounts receivable - trade, and contract assets 28,258 29,570 Electronically recorded monetary claims - operating 1,582 1,739 Merchandise and finished goods 28,601 30,190 Work in process 3,693 3,903 Raw materials and supplies 12,761 14,118 Other 3,595 4,252 Allowance for doubtful accounts (279) (286) Total current assets 102,496 109,945 Non-current assets Property, plant and equipment Buildings and structures, net 8,177 8,249 Machinery, equipment and vehicles, net 1,207 1,353 Land 3,682 3,686 Construction in progress 476 631 Other, net 4,414 4,478 Total property, plant and equipment 17,957 18,400 Intangible assets Goodwill 695 578 Software 5,690 5,618 Other 258 256 Total intangible assets 6,644 6,453 Investments and other assets Investment securities 7,066 7,976 Retirement benefit asset 2,436 2,487 Deferred tax assets 3,474 3,014 Other 1,304 1,292 Allowance for doubtful accounts (16) (16) Total investments and other assets 14,266 14,754 Total non-current assets 38,868 39,608 Total assets 141,364 149,553
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- 6 - (Millions of yen) As of February 28, 2026 As of August 31, 2026 Liabilities Current liabilities Notes and accounts payable - trade 7,575 6,594 Electronically recorded obligations - operating 6,032 6,854 Short-term borrowings 200 200 Current portion of long-term borrowings 1,403 2,201 Income taxes payable 3,536 3,644 Contract liabilities 3,863 4,814 Provision for bonuses 3,174 2,712 Provision for product warranties 897 725 Other 7,636 6,832 Total current liabilities 34,320 34,577 Non-current liabilities Long-term borrowings 10,300 9,300 Deferred tax liabilities 334 254 Retirement benefit liability 3,364 3,383 Lease liabilities 2,332 2,536 Other 940 953 Total non-current liabilities 17,272 16,428 Total liabilities 51,592 51,006 Net assets Shareholders' equity Share capital 7,534 7,534 Capital surplus 9,338 9,358 Retained earnings 59,593 66,854 Treasury shares (155) (154) Total shareholders' equity 76,310 83,593 Accumulated other comprehensive income Valuation difference on available-for-sale securities 3,414 3,964 Foreign currency translation adjustment 9,397 10,302 Remeasurements of defined benefit plans 222 241 Total accumulated other comprehensive income 13,035 14,508 Non-controlling interests 426 444 Total net assets 89,772 98,546 Total liabilities and net assets 141,364 149,553
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- 7 - (2) Semi-annual Consolidated Statements of Income and Comprehensive Income (Semi-annual Consolidated Statement of Income) (Millions of yen) For the six months ended August 31, 2025 For the six months ended August 31, 2026 Net sales 68,653 79,917 Cost of sales 39,119 43,975 Gross profit 29,534 35,942 Selling, general and administrative expenses 20,230 23,075 Operating profit 9,303 12,866 Non-operating income Interest income 123 145 Dividend income 103 164 Share of profit of entities accounted for using equity method 152 162 Foreign exchange gains 201 107 Subsidy income 277 142 Other 190 399 Total non-operating income 1,048 1,122 Non-operating expenses Interest expenses 117 114 Other 64 92 Total non-operating expenses 182 206 Ordinary profit 10,169 13,781 Extraordinary income Gain on sale of non-current assets 6 24 Gain on step acquisitions 71 - Gain on bargain purchase 30 - Other 1 - Total extraordinary income 109 24 Extraordinary losses Impairment losses 15 26 Other 2 - Total extraordinary losses 18 26 Profit before income taxes 10,260 13,779 Income taxes - current 1,779 3,630 Income taxes - deferred (1,744) 158 Total income taxes 35 3,789 Profit 10,225 9,990 Profit attributable to non-controlling interests 34 42 Profit attributable to owners of parent 10,190 9,948
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- 8 - (Semi-annual Consolidated Statement of Comprehensive Income) (Millions of yen) For the six months ended August 31, 2025 For the six months ended August 31, 2026 Profit 10,225 9,990 Other comprehensive income Valuation difference on available-for-sale securities 304 549 Foreign currency translation adjustment (599) 879 Remeasurements of defined benefit plans, net of tax 71 18 Share of other comprehensive income of entities accounted for using equity method 18 47 Total other comprehensive income (204) 1,495 Comprehensive income 10,020 11,486 Comprehensive income attributable to Comprehensive income attributable to owners of parent 10,003 11,421 Comprehensive income attributable to non-controlling interests 17 64
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- 9 - (3) Semi-annual Consolidated Statement of Cash Flows (Millions of yen) For the six months ended August 31, 2025 For the six months ended August 31, 2026 Cash flows from operating activities Profit before income taxes 10,260 13,779 Depreciation 1,836 2,037 Impairment losses 15 26 Amortization of goodwill 72 120 Loss (gain) on sale of property, plant and equipment (4) (24) Interest and dividend income (226) (309) Interest expenses 117 114 Loss (gain) on sale of investment securities (1) - Gain on bargain purchase (30) - Subsidy income (277) (142) Decrease (increase) in accounts receivable - trade, and contract assets 158 (1,256) Decrease (increase) in inventories 67 (2,706) Increase (decrease) in trade payables (1,989) (435) Increase (decrease) in contract liabilities 223 855 Other, net (928) (2,079) Subtotal 9,294 9,979 Interest and dividends received 308 460 Interest paid (94) (114) Income taxes refund (paid) (1,278) (3,503) Subsidies received 277 142 Net cash provided by (used in) operating activities 8,506 6,964 Cash flows from investing activities Payments into time deposits (899) (0) Proceeds from withdrawal of time deposits 1,136 263 Purchase of property, plant and equipment (1,110) (1,170) Purchase of intangible assets (1,095) (934) Proceeds from purchase of investments in capital of subsidiaries resulting in change in scope of consolidation 1,759 - Other, net (125) (74) Net cash provided by (used in) investing activities (334) (1,917) Cash flows from financing activities Net increase (decrease) in short-term borrowings (3,600) - Proceeds from long-term borrowings 1,000 - Repayments of long-term borrowings (1,002) (201) Dividends paid (2,369) (2,686) Repayments of lease liabilities (328) (257) Other, net (35) (42) Net cash provided by (used in) financing activities (6,337) (3,188) Effect of exchange rate change on cash and cash equivalents (343) 547 Net increase (decrease) in cash and cash equivalents 1,491 2,405 Cash and cash equivalents at beginning of period 15,413 23,544 Cash and cash equivalents at end of period 16,905 25,949
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- 10 - (4) Notes to Semi-annual Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Notes in case of significant changes in shareholders’ equity) Not applicable. (Notes on Semi-annual Consolidated Statement of Cash Flows) (Major breakdown of assets and liabilities of the company that has become a consolidated subsidiary company as a result of purchase of investments in capital) For the six months ended August 31, 2025 (from March 1, 2025 to August 31, 2025) A breakdown of assets and liabilities of FURUNO NA VIGATION TECHNOLOGY (SHANGHAI) CO., LTD., which has become a consolidated subsidiary company as a result of purchase of investments in capital, as of the beginning of the consolidation and relation thereof to proceeds from purchase (net) are as follows: (Millions of yen) Current assets 2,360 Non-current assets 3 Current liabilities (1,903) Negative goodwill (30) Non-controlling interests (46) Cost of purchase of investments in capital 383 Cost of purchase prior to the acquisition of control (98) Gain on step acquisitions (71) Advance payments included in the cost of purchase (62) Contingent consideration 104 Cash and cash equivalents (2,014) Difference: Proceeds from purchase (net) 1,759 For the six months ended August 31, 2026 (from March 1, 2026 to August 31, 2026) Not applicable.
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- 11 - (Segment information, etc.) [Segment information] For the six months ended August 31, 2025 (from March 1, 2025 to August 31, 2025) 1. Information on net sales and profit (loss) by reportable segment (Millions of yen) Reportable segment Others (Note 1) Total Adjustment (Note 2) Amount recorded in Semi-annual Consolidated Statement of Income (Note 3) Marine Business Industrial Business Wireless LAN /Handheld Terminal Business Total Net sales Net sales to external customers 59,982 6,958 1,561 68,502 150 68,653 – 68,653 Inter-segment net sales or transfers 107 14 204 326 296 623 (623) – Total 60,090 6,973 1,766 68,829 446 69,276 (623) 68,653 Segment profit (loss) 9,517 187 9 9,714 (88) 9,626 (323) 9,303 Notes: 1. “Others” refer to business segments that are not attributable to any reportable segment, including the electromagnetic environment testing business. 2. The segment profit (loss) adjustment amount is the result of elimination of intersegment transactions. 3. Segment profit (loss) is adjusted based on operating profit reported in the Semi-annual Consolidated Statement of Income. For the six months ended August 31, 2026 (from March 1, 2026 to August 31, 2026) 1. Information on net sales and profit (loss) by reportable segment (Millions of yen) Reportable segment Others (Note 1) Total Adjustment (Note 2) Amount recorded in Semi-annual Consolidated Statement of Income (Note 3) Marine Business Industrial Business Wireless LAN /Handheld Terminal Business Total Net sales Net sales to external customers 67,794 9,342 2,643 79,780 137 79,917 – 79,917 Inter-segment net sales or transfers 71 51 249 372 365 738 (738) – Total 67,866 9,393 2,892 80,153 503 80,656 (738) 79,917 Segment profit (loss) 12,212 822 356 13,391 (40) 13,351 (484) 12,866 Notes: 1. “Others” refer to business segments that are not attributable to any reportable segment, including the electromagnetic environment testing business. 2. The segment profit (loss) adjustment amount is the result of elimination of intersegment transactions. 3. Segment profit (loss) is adjusted based on operating profit reported in the Semi-annual Consolidated Statement of Income.