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Financial results presentation6841YOKOGAWA ELECTRIC CORPORATIONElectrical Equipment and Precision Instruments

Financial Results Presentation Materials for the Fiscal Year Ending March 2026

From April 2025 to March 2026, orders and net sales increased, while operating income declined due to factors including a deterioration in the gross margin. For the fiscal year ending March 2026, the company expects higher sales and higher profit, and also plans to increase the annual dividend and repurchase treasury shares for up to ¥30 billion.

Worth reading
84Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-10
¥100 million (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,048 100 million+7.5%
Operating profit¥826 100 million-1.2%
Ordinary income¥843 100 million-1.3%
Net income¥581 100 million +11.5%net income attributable to owners of the parent
Operating profit margin13.6 %ROS
Selling, general and administrative expensesAmount not stated
Gross Profit Marginnot disclosed (gross margin deteriorated year on year)
Results for the three months of the current quarter
Fourth quarter of the fiscal year ended March 2026
Orders received
¥1,705 100 million
Net Sales
¥1,676 100 million
Operating profit
¥221 100 million
Full-year earnings forecast
Orders received
¥6,450 100 million
Net Sales
¥6,150 100 million
Operating profit
¥850 100 million
Ordinary income
¥850 100 million
Income before taxes
¥850 100 million
Profit attributable to owners of the parent
¥585 100 million
EPS
¥229.75
ROS
13.8 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year change in operating income
Increase in gross profit from higher sales (excluding foreign exchange impact)+¥18.3 billion
Deterioration in Gross MarginDown ¥9.5 billion
Increase in SG&A expensesDown ¥8 billion
Foreign Exchange EffectsDown ¥1.8 billion
Details of gross margin deterioration
  • Provision for losses on construction contracts associated with strategic project orders
  • Changes in sales mix and other factors (lower product mix)
  • Deterioration in selling prices (economic slowdown in China)
  • Lower profitability on specific projects
  • Costs associated with completing the transfer of the aviation equipment business
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Exchange rate (US dollar)¥150
  • Exchange rate (euro)¥170
New initiatives
  • Expanding the application of autonomous control AI solutions for plants to operating plants
  • Acquisition and integration of BaxEnergy, Web Synergies, Intellisync and WiSNAM
  • Strategic collaboration agreement for Rolls-Royce SMR's small modular reactor program
  • Share repurchase of up to ¥30 billion
  • Expanding solutions in the renewable energy and nuclear power sectors
Key KPIsA metric the company considers important as a management benchmark.
  • Orders received¥6,178 100 million
    Year on year against the same period last year+3.2%
  • Order backlog¥4,662 100 million
    Year on year against the same period last year+¥38 billion year on year
  • Overseas revenue ratio73.3 %
    Year on year against the same period last year74.4% in the previous fiscal year
  • Solution service orders¥1,508 100 million
    Year on year against the same period last year+18.8%
  • Product orders¥1,781 100 million
    Year on year against the same period last year+1.0%
  • Project orders¥2,420 100 million
    Year on year against the same period last year▲7.3%
Segment results
Control system
Orders received
¥5,709 100 million
yoy+¥6.6 billion
Net Sales
¥5,655 100 million
yoy+¥37.2 billion
Operating profit
¥752 100 million
yoyDown ¥2.4 billion
Measuring instruments
Orders received
¥420 100 million
yoy+¥11.7 billion
Net Sales
¥340 100 million
yoy+¥4.1 billion
Operating profit
¥78 100 million
yoy+¥1.6 billion
New businesses and other
Orders received
¥50 100 million
yoy+¥1 billion
Net Sales
¥53 100 million
yoy+¥1.1 billion
Operating profit
¥-4 100 million
yoyDown ¥100 million
Medium-term management plan targets
Plan nameGS2028
Target fiscal yearFY28
Target value
  • Orders growth of at least 10% per year
  • Net sales growth of at least 10% per year
  • ROS of at least 15%
  • ROE of at least 10%
  • Financial ROIC of at least 10%
  • EPS of at least ¥300
  • Operating cash flow of at least ¥300 billion (over 5 years)
Comparison with actual resultsFY24 and FY25 results and FY26 earnings forecast compared with targets
Financial targets
ROE
Target10% or higher
FY2025 actual results11.8%
Financial ROIC
Target10% or higher
FY2025 actual results11.7%
Equity ratio
FY2025 actual results65.4%
Debt-to-equity ratio
FY2025 actual results4.7%
Orders received and order backlog
Orders received
¥6,178 100 million
Order backlog
¥4,662 100 million
Capital expenditures
¥322 100 million FY25
Annual Dividend
FY25
Annual¥78
Interim¥32
End of period¥46
FY26 forecast
Annual¥92
Interim¥46
End of period¥46
Payout ratio
FY26 forecast40.0%
Total payout ratio91.3%
Acquisition of treasury shares
Up to ¥30 billion
Period8 May 2026 to the end of September 2026
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥6,048 100 million (YoY +7.5%)
Operating profit¥826 100 million (YoY -1.2%)
Ordinary income¥843 100 million (YoY -1.3%)
Net income¥581 100 million (net income attributable to owners of the parent) (YoY +11.5%)
Gross Profit Marginnot disclosed (gross margin deteriorated year on year)
Operating profit margin13.6 %（ROS）
Selling, general and administrative expenses非開示
Results for the three months of the current quarterSubject Fourth quarter of the fiscal year ended March 2026 / Orders received ¥1,705 100 million / Net Sales ¥1,676 100 million / Operating profit ¥221 100 million
Full-year earnings forecastOrders received ¥6,450 100 million / Net Sales ¥6,150 100 million / Operating profit ¥850 100 million / Ordinary income ¥850 100 million / Income before taxes ¥850 100 million / Profit attributable to owners of the parent ¥585 100 million / EPS ¥229.75 / ROS 13.8 %
Segment resultsControl system Orders received ¥5,709 100 million / Net Sales ¥5,655 100 million / Operating profit ¥752 100 million / Measuring instruments Orders received ¥420 100 million / Net Sales ¥340 100 million / Operating profit ¥78 100 million / New businesses and other Orders received ¥50 100 million / Net Sales ¥53 100 million / Operating profit ¥-4 100 million
Breakdown of Factors Affecting the ChangeYear-on-year change in operating income Increase in gross profit from higher sales (excluding foreign exchange impact) +¥18.3 billion / Deterioration in Gross Margin Down ¥9.5 billion / Increase in SG&A expenses Down ¥8 billion / Foreign Exchange Effects Down ¥1.8 billion / Details of gross margin deterioration Provision for losses on construction contracts associated with strategic project orders, Changes in sales mix and other factors (lower product mix), Deterioration in selling prices (economic slowdown in China), Lower profitability on specific projects, Costs associated with completing the transfer of the aviation equipment business
Key KPIsOrders received ¥6,178 100 million, Order backlog ¥4,662 100 million, Overseas revenue ratio 73.3 %, Solution service orders ¥1,508 100 million, Product orders ¥1,781 100 million, Project orders ¥2,420 100 million
Assumptions Underlying the Business OutlookExchange rate (US dollar) ¥150, Exchange rate (euro) ¥170
Medium-term management plan targetsPlan name GS2028 / Target fiscal year FY28 / Target value Orders growth of at least 10% per year, Net sales growth of at least 10% per year, ROS of at least 15%, ROE of at least 10%, Financial ROIC of at least 10%, EPS of at least ¥300, Operating cash flow of at least ¥300 billion (over 5 years) / Comparison with actual results FY24 and FY25 results and FY26 earnings forecast compared with targets
Financial targetsROE Target 10% or higher / FY2025 actual results 11.8% / Financial ROIC Target 10% or higher / FY2025 actual results 11.7% / Equity ratio FY2025 actual results 65.4% / Debt-to-equity ratio FY2025 actual results 4.7%
Annual DividendFY25 Annual ¥78 / Interim ¥32 / End of period ¥46 / FY26 forecast Annual ¥92 / Interim ¥46 / End of period ¥46
Payout ratioFY26 forecast 40.0% / Total payout ratio 91.3%
Acquisition of treasury sharesAmount Up to ¥30 billion / Number of Shares Not disclosed / Period 8 May 2026 to the end of September 2026
Capital expenditures¥322 100 million (FY25)
Orders received and order backlogOrders received ¥6,178 100 million / Order backlog ¥4,662 100 million
New initiativesExpanding the application of autonomous control AI solutions for plants to operating plants, Acquisition and integration of BaxEnergy, Web Synergies, Intellisync and WiSNAM, Strategic collaboration agreement for Rolls-Royce SMR's small modular reactor program, Share repurchase of up to ¥30 billion, Expanding solutions in the renewable energy and nuclear power sectors
Items this document does not state (8)
Progress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Orders increased due to multiple large-scale projects in the Control business and demand related to AI data centers in the measuring instruments business. Net sales increased, reflecting contributions from large-scale projects ordered by the end of the previous fiscal year. Operating income declined due to provisions for losses on strategic projects, changes in the sales mix, deterioration in selling prices, lower profitability on specific projects, costs associated with completing the transfer of the aviation equipment business, higher personnel expenses, and upfront investments.

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Financial Results Presentation Materials for the Fiscal Year Ending March 2026 | YOKOGAWA ELECTRIC CORPORATION (6841) timely disclosure | Komori