Yokogawa Electric (6841) Q1 2025 earnings summary

Executive summary

• Sales and operating income increased year-over-year despite foreign exchange headwinds, while orders declined mainly due to currency fluctuations.

• Profit attributable to owners of parent rose 50.7%, aided by a decrease in deferred income taxes from a change in company classification.

• Ordinary profit declined 8.9% year-over-year, mainly due to foreign exchange losses.

• The company continued to execute its medium-term plan focused on sustainable value creation.

Financial highlights

• Orders fell 5.0% year-over-year to ¥149.1B, but would have risen 1.0% excluding exchange rates.

• Sales increased 1.0% to ¥130.2B; excluding exchange rates, up 7.1%.

• Operating income rose 9.3% to ¥16.2B; up 18.3% excluding exchange rates.

• Gross margin improved, contributing to higher operating income.

• Basic earnings per share rose to ¥59.08 from ¥38.65 year-over-year.

Outlook and guidance

• Full-year forecast unchanged: sales expected at ¥560.0B, operating income at ¥80.0B, and profit attributable to owners at ¥52.5B.

• Operating income projected to decrease 4.2%, mainly due to forex impacts.

• EPS forecast at ¥202.81, not factoring in potential share buybacks after April 2025.

• Dividend forecast for FY2026 is ¥64 per share, up from ¥58 per share in FY2025.

• Regional sales and orders outlook mixed, with Japan and India expected to grow, but declines in Middle East, Africa, and China.