Yokogawa Electric (6841) Q4 2025 earnings summary

Executive summary

• FY24 saw record highs in orders, sales, operating income, and ordinary income, driven by strong Middle East demand, foreign exchange gains, and large project deliveries.

• Profit attributable to owners of parent declined 15.5% YoY to ¥52.1B due to the absence of prior-year extraordinary gains.

• Control/industrial automation segment grew in sales and operating income, while measuring instruments declined; new businesses remained stable or slightly down.

• FY25 guidance anticipates lower reported sales and operating income due to forex headwinds, but underlying growth and higher dividends are expected.

• Comprehensive income dropped to ¥51.4B from ¥88.7B, mainly on lower other comprehensive income.

Financial highlights

• FY24 orders: ¥598.6B (+10.4% YoY); sales: ¥562.4B (+4.1% YoY); operating income: ¥83.5B (+6.0% YoY); ordinary income: ¥85.4B (+1.5% YoY).

• Profit attributable to owners of parent: ¥52.1B (down ¥9.6B, -15.5% YoY); basic EPS: ¥200.41 (down from ¥234.83 YoY).

• Operating cash flow improved to ¥99.0B, aided by advance payments and working capital efficiency.

• R&D expenses: ¥32.1B (5.7% of sales); CAPEX: ¥33.1B (5.9% of sales); investing cash outflow: ¥28.6B.

• Net assets per share: ¥1,807; cash and cash equivalents at year-end: ¥179.3B (up ¥44.8B).

Outlook and guidance

• FY25 orders forecast: ¥580.0B (-3.1% YoY); sales: ¥560.0B (-0.4% YoY); operating income: ¥80.0B (-4.2% YoY); profit attributable to owners: ¥52.5B (+0.7% YoY).

• Excluding forex, sales and operating income are expected to increase.

• FY25 EPS forecast: ¥202.81; annual dividend forecast: ¥64 (+¥6 YoY); payout ratio to rise to 31.6%.

• Share buyback of up to ¥20B planned through December 2025.

• Assumes USD/JPY rate of 140 (vs. 152.55 in FY24), with risks from FX volatility and geopolitical tensions.