Yokogawa Electric (6841) Q2 2027 earnings summary

Executive summary

• 1H orders rose 21.7% YoY to ¥365.6bn, sales increased 5.8% to ¥298.2bn, and operating income fell 8.4% to ¥35.7bn.

• FY2027 guidance was raised to ¥629.0bn sales and ¥88.0bn operating income.

Financial highlights

• Ordinary income fell 8.6% to ¥36.3bn; profit attributable to owners of parent declined 21.5% to ¥23.1bn.

• Operating income excluding FX impact was ¥30.6bn; FX contributed ¥5.2bn, partly offsetting lower gross profit and higher SG&A.

• Income before tax was ¥35.2bn; tax and related items were ¥10.7bn versus ¥6.9bn a year earlier.

• Extraordinary losses included a ¥1.5bn loss on valuation of investment securities, versus ¥17M in the prior-year period.

Outlook and guidance

• FY2027 forecast: orders ¥665.0bn, sales ¥629.0bn, operating and ordinary income ¥88.0bn each, parent-attributable profit ¥60.5bn, and EPS ¥241.80.

• Revised segment sales forecast: Industrial Automation and Control ¥583.0bn, Measuring Instruments ¥43.0bn, and New Businesses and Others ¥3.0bn; Measuring Instruments orders forecast rose to ¥59.0bn from ¥39.0bn.

• Revised segment operating income forecast: Industrial Automation and Control ¥76.5bn, Measuring Instruments ¥12.0bn, and New Businesses and Others loss of ¥0.5bn.

• Control forecast: sales +¥10.0bn and operating income unchanged; Measuring Instruments: orders +¥20.0bn, sales +¥4.0bn and operating income +¥3.0bn versus May.

• FY2027 operating income forecast reflects ¥13.0bn higher gross profit from sales growth, ¥8.5bn lower gross profit from margin pressure, and ¥0.6bn higher SG&A.