In its Integrated Report 2026, OMRON Corporation set out a policy of restoring performance in FY2025, strengthening earnings power in FY2026 and renewing ROE expansion. The key pillars are strengthening its product lineup centered on device businesses, expanding the use of data, focusing on 13 businesses and imposing greater discipline on capital allocation by improving cash generation.
In FY2025, OMRON Corporation captured growing demand related to semiconductors and AI, and the effects of structural reform became apparent. Group-wide sales rose 7% year on year, while the Industrial Automation Business (IAB) achieved strong growth of 12%. Strengthening relationships, including with distributors, and launching new products contributed to the expansion of the customer base, while deeper trust-based relationships are positioned as a source of future growth.
For FY2026, the operating margin is expected to improve to 9.1%, an improvement of 1.7 percentage points from the previous year. SG&A expenses are expected to remain high, however, and the company plans to improve earnings power through a combination of pricing measures, fixed-cost reductions and productivity improvements. Renewed ROE expansion and improved capital efficiency are positioned as central medium-term priorities, and the company will promote Trusted Growth.
Under SF 2nd Stage, the company has identified 13 priority businesses. It will reinforce its device businesses as the core of growth and pursue its transformation into a GEMBA DX company. From FY2026, it will strengthen CEO-led execution governance and monitor execution using a leading indicator of customer-base expansion, the Customer Base Map.
The company will prioritize strengthening cash generation, with plans to restore operating cash flow from more than approximately ¥60 billion to more than ¥100 billion in FY2026. It will add cash metrics by BC to its evaluation framework and seek to balance financial soundness with growth investment. M&A will receive top priority in the IA area and will be considered on the premise of generating returns above the cost of capital.
Through these initiatives, the company aims to renew ROE expansion and improve TSR in FY2030. It will enhance corporate value by integrating trust, earnings, capital efficiency and cash generation, while promoting long-term customer value creation.