Yokogawa Electric (6841) investor relations material

Executive summary

• Orders rose 23.1% year-over-year to ¥183.4 billion, driven by large projects in Control and strong AI data center demand in Measuring Instruments.

• Net sales increased 8.6% year-over-year to ¥141.3 billion, mainly due to favorable foreign exchange rates.

• Operating income was stable at ¥16.5 billion, up 1.8% year-over-year, as higher SG&A offset gains.

• Ordinary profit increased 8.1% to ¥16.9 billion, while profit attributable to owners fell 19.4% to ¥12.2 billion due to higher tax rates.

• Comprehensive income surged 23.0% to ¥18.8 billion, reflecting strong other comprehensive income.

Financial highlights

• Orders: ¥183.4B (+23.1% YoY); Sales: ¥141.3B (+8.6% YoY); Operating income: ¥16.5B (+1.8% YoY).

• Ordinary income: ¥16.9B (+8.1% YoY); ROS: 11.7% (down 0.8pt YoY).

• Profit attributable to owners: ¥12.2B (down ¥2.9B, -19.4% YoY); Basic EPS declined to ¥48.27 from ¥59.08 YoY.

• Gross profit improved to ¥67.4 billion from ¥61.4 billion YoY.

• Shareholders’ equity ratio remained strong at 65.4%.

Outlook and guidance

• FY26 forecast unchanged: Orders expected at ¥645.0B (+4.4% YoY), sales at ¥615.0B (+1.7% YoY), operating income at ¥85.0B (+3.0% YoY).

• Profit attributable to owners forecast at ¥58.5B (+0.7% YoY), with EPS of ¥229.75.

• No changes to previously announced guidance; FX assumption is 1 USD = ¥150.

• Growth supported by robust energy demand and investment appetite, but Middle East geopolitical risks may limit sales growth.