While IDEC's first-half order intake reached a record high, OMRON demonstrated a structure in which its control equipment business generates almost as much operating profit as the entire company. The market reaction was limited, and 3 indicators will need to be checked in the next earnings release.
IDEC, which supports factory automation, reportedly posted record-high order intake in its first-half results for early November 2026. Orders were up approximately 60% year on year, and first-half order intake alone was also at a record-high level. It was also reported that Mitsubishi Electric's FA business saw a substantial year-on-year increase in first-half orders, while PLC shipments likewise exceeded the year-earlier month. The evidence of a recovery in the FA market is beginning to accumulate.
Meanwhile, Kyoto-headquartered OMRON explained that its control equipment business has grown to a scale where it generates almost as much operating profit as the entire company. Its ability to provide everything from sensors and controllers to motors, robots and inspection equipment under one roof is positioned as a strength. Going forward, the balance between expanding orders across a broad range of industries and raising prices is expected to remain a focus.
OMRON's first-half results, announced on 10 November, showed what was described as a record-high gross profit margin, and its full-year forecast was also raised. However, the stock was heavily sold off the following day. Skepticism about the sustainability of the results has been cited as a factor behind the stock's muted reaction to the strong earnings. The next earnings release is expected to provide evidence for determining whether the recovery in demand is genuine.