Yokogawa Electric Corporation
6841・Prime Market・Electric Appliances
Control Business
Core business accounting for approximately 93% of Yokogawa Electric's net sales, providing comprehensive solutions for the process industry
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥565,523 million | ¥528,302 million | ↑ |
| Operating income | ¥75,155 million | ¥77,582 million | ↓ |
| Operating margin | 13.3% | 14.7% | ↓ |
| Orders received | ¥570,881 million | ¥564,268 million | ↑ |
Business Details
Provides an integrated offering spanning field sensors, production control systems, various software, and Lifecycle Services for a diverse range of industries including oil & gas, chemicals, power, pharmaceuticals, and food. The company holds a high share both domestically and internationally, with global operations centered on the Middle East & Africa, Europe & CIS, and Southeast Asia. Composed of three sub-segments—Energy & Sustainability, Materials, and Life—the business has a track record of delivering more than 40,000 projects worldwide.
Recent Overview
Net sales rose 7.0% year on year to ¥565,523 million, but operating income declined 3.1% due to deterioration in gross margin
In the Control Business for FY2026 (ending March 2026), net sales increased to ¥565,523 million (up ¥37,221 million year on year), driven by the contribution to sales from large-scale projects that had been ordered by the end of the previous period. On the other hand, operating income decreased to ¥75,155 million (down ¥24,427 million year on year). Changes in the business mix, declines in market prices in certain regions, and the recording of one-time provisions for construction losses associated with strategically won projects deteriorated the gross margin. Orders received increased ¥6,613 million year on year to ¥570,881 million, continuing to build up against a backdrop of solid energy demand. For FY2027 (ending March 2027), the company forecasts a gradual recovery, with net sales of ¥573,000 million (+1.3% year on year) and operating income of ¥76,500 million (+1.8% year on year).
Key Products
Growth Drivers
- Steady mid- to long-term customer investment demand underpinned by the energy transition
- Continued increase in net sales driven by the sales contribution of large-scale projects ordered in prior periods
- Strong energy investment and accumulating orders received in the Middle East & Africa region
- Expanding demand for IA2IA and Smart Manufacturing and promotion of SoS-type business under GS2028
- Strengthening of a stable revenue base through expansion of the Lifecycle Services business
- Expansion of business domains and geographic reach through M&A such as Web Synergies (S) Pte. Ltd.
Risks
- Deterioration in gross margin due to changes in business mix and declines in market prices in certain regions
- Risk of one-time provisions for construction losses associated with the winning of strategic projects
- Delays in customer investment decisions due to the materialization of geopolitical risks, including the situation in the Middle East
- Foreign exchange risk (yen appreciation would depress net sales and operating income)
- Continued market slowdown due to prolonged stagnation in Chinese economic activity
- Impact on customer investment appetite from sharp fluctuations in crude oil prices
- Changes in the business environment such as trade regulations and tariff hike policies
- Pressure on profit margins from increased SG&A expenses such as upfront investment costs and personnel expenses
Last updated: June 18, 2026