YASKAWA Electric (6506) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY2026 was ¥125.6 billion, down 5.1% year-over-year, with operating profit at ¥10.5 billion, down 5.5%, and profit attributable to owners at ¥7.0 billion, down 24.4%.

• Orders increased 1% sequentially but declined 6% year-over-year, with main businesses driving the quarterly recovery.

• Operating margin was maintained year-over-year through improved segment value despite lower profits.

• Demand remained firm in Japan's semiconductor and electronic component markets, but overall uncertainty increased due to geopolitical risks and U.S. tariff policies.

• Profit before tax dropped 20.1% year-over-year, impacted by lower operating profit and affiliate earnings.

Financial highlights

• Revenue: ¥125.6bn, down ¥6.8bn or 5.1% year-over-year.

• Operating profit: ¥10.5bn, down ¥0.6bn or 5.5% year-over-year.

• Basic EPS for Q1 FY2026 was ¥26.81, down from ¥35.19 in the prior year.

• Comprehensive income dropped to ¥3.2bn from ¥19.7bn year-over-year.

• Total assets as of May 31, 2025, were ¥748.7bn, with equity attributable to owners at ¥425.5bn (56.8% of total assets).

Outlook and guidance

• Full-year FY2026 revenue forecast revised down to ¥515.0bn (-4.2% year-over-year), operating profit at ¥43.0bn (-14.3%), and profit attributable to owners at ¥33.0bn (-42.1%).

• EPS forecast for FY2026 is ¥127.24, a 41.8% decrease from the previous year.

• Forecast revision attributed to increased uncertainty in demand due to U.S. tariff policies.

• Dividend forecast for FY2025 and FY2026 remains at ¥68 per share.

• Dividend payout ratio projected to rise due to lower earnings.