Yokogawa Electric
6841.THIGHScore: 68.5Controls / Instrumentation · Weight: 15%· Data as of 2026-05-28
Investment Thesis
Signed exclusive DPCS contract with Rolls-Royce SMR (Feb 2, 2026) for global fleet control systems. APRIL 2026: GBE-N formally signed contract with Rolls-Royce SMR for 3 units at Wylfa (1.5GW) — activates Yokogawa design phase in UK Runcorn + Czech Republic + Netherlands. CENTUM VP is the standard DCS platform for all Japanese nuclear plants. FY2025 results: Revenue ¥604.8B (+7.5%), OP ¥82.6B. Dividend RAISED ¥64→¥78 (+21.9%) signaling management confidence. FY2026 guidance: Revenue ¥615.0B, NI ¥58.5B. Stock re-rated from ~¥4,200 → ¥6,245 (+49%) on SMR thesis validation.
Risk
1) EPS DECLINED FY2025: ¥174.23 → ¥160.95 (-7.6%) despite revenue growth — gross margin pressure from large-scale projects. Watch FY2026 margin recovery. 2) Valuation stretched: stock re-rated from ¥4,200 to ¥6,245 (+49%), PE expanded. If P/E >35x without earnings growth, trim per monitoring trigger. 3) Wylfa Final Investment Decision (FID) timeline risk — design phase started Apr 2026, but FID subject to UK regulatory approval (NDA/ONR). Delay = overhang. 4) JTB-forecasted Japan energy capex budget volatility vs SMR multi-year revenue recognition.
Monitoring Trigger
TRIM if: PE >35x without FY2026 earnings upgrade, OR Wylfa FID pushed >2027, OR margin fails to recover in Q1 FY2026 results. HOLD: Wylfa FID on track, FY2026 NI ≥¥58.5B guidance. ADD if: Additional SMR fleet orders announced (Czech Republic or Netherlands scope expand).
Key Dates
Key Metrics
Business Segments
| Segment | Revenue | Share | Description |
|---|---|---|---|
| Industrial Automation & Control | ¥500B | 85% | DCS, SCADA, nuclear I&C, process control |
| Measuring Instruments | ¥32B | 5% | Precision test & measurement |
| New Businesses | ¥56B | 10% | Life sciences, new energy |
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| confirmed | Rolls-Royce SMR / GBE-N | DPCS for global SMR fleet | Exclusive contract Feb 2, 2026. GBE-N landmark contract signed Apr 13, 2026 — 3 SMRs at Wylfa now in active design phase with £599M govt loan. Long lead-time equipment ordering underway. |
| confirmed | Saudi Aramco | CENTUM VP DCS + AI control agents | CPA since 2012. AI agents deployed at Fadhili Oct 2025 |
| confirmed | Shell | Robotics + AI plant maintenance | Long-term agreement Jun 2025 |
| confirmed | ADNOC | ICSS, ESD, fire & gas systems | AED 2.6B ($708M) framework agreement |
| probable | Japanese nuclear utilities | CENTUM VP DCS for reactor control | Standard platform for J-nuclear plants |
| confirmed | GBE-N (Great British Energy – Nuclear) | DPCS for Wylfa SMR (3 × Rolls-Royce 470MWe = 1.5GW) | April 2026: GBE-N and Rolls-Royce SMR signed formal contract for site-specific design, regulatory engagement, planning at Wylfa — activates Yokogawa DPCS design phase |