Yokogawa Electric (6841) Q2 2025 earnings summary

Executive summary

• Sales and operating income rose in 1H FY24, mainly due to favorable foreign exchange rates and growth in core businesses; orders and sales increased year-over-year, but profit attributable to owners of parent declined due to the absence of a prior-year gain on investment securities.

• Orders grew by ¥24.9B (+9.3%), sales by ¥12.1B (+4.7%), and operating income by ¥2.6B (+7.7%) compared to 1H FY23; profit attributable to owners of parent fell by ¥10.5B (-29.9%).

• Comprehensive income dropped to ¥16.1B from ¥56.3B YoY, mainly due to negative FX translation adjustments.

• Upward revision to full-year orders forecast, reflecting strong 1H results and positive outlook.

Financial highlights

• 1H FY24 orders: ¥291.0B (+9.3% YoY); sales: ¥266.6B (+4.7% YoY); operating income: ¥36.3B (+7.7% YoY); ordinary income: ¥35.9B (-3.2% YoY); profit attributable to owners of parent: ¥24.6B (-29.9% YoY).

• Gross margin improved to 47.8% from 46.7% YoY; ROS improved to 13.6% from 13.2% YoY.

• Basic EPS decreased to ¥94.45 from ¥132.50 YoY.

• Return on equity declined to 5.6% from 8.8% YoY.

• Shareholders' equity ratio rose to 67.2% from 64.9% at the previous fiscal year-end.

Outlook and guidance

• FY24 orders forecast raised to ¥575.0B (+6.1% YoY); sales and operating income forecasts unchanged at ¥563.0B and ¥75.0B, respectively.

• Profit attributable to owners of parent forecast at ¥49.0B (-20.6% YoY); EPS projected at ¥188.35.

• Segment forecasts: Industrial automation and control net sales at ¥531.0B, measuring instruments at ¥28.0B, new businesses at ¥4.0B.

• Upward revision to control segment orders, especially in Middle East and Africa; China and North America revised downward.