Japan’s hot summer and Middle Eastern demand offset weak markets in Europe, China, and North America.
In Japan, Fujitsu General announced its financial results for the first quarter of the fiscal year ending March 2026 (April–June 2025). Consolidated sales came to 79.29 billion yen, essentially flat year-on-year (down 0.5%). Although domestic air-conditioner sales and information and communication system sales grew, overseas air-conditioner sales declined, keeping total revenue unchanged from last year.
Profitability, however, improved sharply. Thanks to steady cost reductions, higher earnings from the ICT business, and the absence of negative factors seen last year (such as expenses related to refrigerant conversion in North America), the company achieved:
- Operating Profit: 4.67 billion yen (up 551.5% YoY)
- Ordinary Profit: 5.22 billion yen (up 97.1% YoY)
- Net Profit: 3.73 billion yen (up 280.4% YoY)
Air-Conditioner Business
The air-conditioning division reported sales of 69.53 billion yen (down 6.0% YoY). Despite weaker revenue, operating profit surged to 1.98 billion yen (up 343.3%) due to cost savings and the removal of one-off expenses from last year.
- Japan: Sales rose as the company expanded distribution to housing equipment channels, advanced product supply to mass retailers, and maintained pricing amid an early summer heatwave. The company also launched its upgraded “nocria” W/L series, the industry’s first models with removable, washable airflow panels and compliant with Japan’s 2027 energy-saving standards.
- Americas: In North America, sales fell due to unseasonable weather and uncertainty caused by tariffs. However, Fujitsu General continued with its product transition toward new models meeting environmental regulations, and is developing compliant large-scale VRF systems.
- Europe: Although some regions saw stronger room air-conditioner sales and early signs of stabilization in ATW (air-to-water heat pump) demand, overall business conditions remained severe. The company focused on reducing local inventory.
- Middle East & Africa: Sales grew significantly, driven by large-scale real estate projects and continued construction investment.
- Oceania: Local currency sales increased, but yen-based sales fell due to currency depreciation.
- Asia: In India, the solutions business was steady, but overall room AC demand declined due to unfavorable weather compared with last year’s record heatwave. Fujitsu General is expanding its product lineup to support future growth.
- China: Sales fell due to economic slowdown and weakness in the property sector.
Tech Solutions Business
Information and communication systems posted revenue growth, making a major contribution to overall profit.
Looking Ahead
Fujitsu General’s results show resilience in profitability despite flat sales. With growing demand in Japan and the Middle East, alongside continued product innovation such as smart and energy-efficient air conditioners, the company is preparing to expand further once weak regions like Europe, North America, and China stabilize. Its emphasis on cost reduction and strategic product development could strengthen long-term competitiveness.
Explanation of Key Terms
- Operating Profit: Earnings from core business before interest and taxes, a key measure of efficiency.
- VRF (Variable Refrigerant Flow): A type of large-scale air-conditioning system for buildings that can adjust refrigerant flow for efficiency.
- ATW (Air-to-Water Heat Pump): A system that provides hot water and heating using heat pump technology, promoted in Europe for energy savings.
