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Yokogawa Electric

6841.THIGH

Controls / Instrumentation · Weight: 15%· Data as of 2026-05-28

¥5,409-0.99%

6-month daily

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

2026-06-30rebalanceSemiannual portfolio rebalance

2026-08earningsQ1 FY2026 earnings — check margin recovery (gross profit compression was key FY2025 drag)

2026-H2catalystWylfa regulatory engagement progress — ONR pre-application consultation milestone

2027catalystWylfa FID expected — if approved, confirms multi-year DPCS revenue stream

Update History

2026-04-14evolveHOLD

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Dividend raised ¥64→¥78/share, yield 1.1%→1.4%, ROE updated 12.2%→11.6%. Rolls-Royce SMR catalyst advancing.

div_yield:1.1%1.4%roe:12.2%11.6%

2026-04-16evolveHOLD — thesis materially strengthened

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GBE-N landmark contract signed Apr 13 for 3 Rolls-Royce SMRs at Wylfa (£599M govt loan). Yokogawa DPCS moves from contract-signed to active design phase. Strongest catalyst since Feb 2 contract.

thesis:DPCS contract signed, UK+CZ delivery confirmedGBE-N contract moves DPCS to active design phase with equipment orderingsupply_chain:Rolls-Royce SMR exclusive contractAdded GBE-N Apr 13 contract detail, £599M govt loan, Wylfa active design

2026-05-28evolveHOLD

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FY2025: Rev ¥604.8B (+7.5%), OP ¥82.6B. EPS declined ¥174→¥161 but dividend raised ¥64→¥78. GBE-N Wylfa contract signed Apr 2026. Stock re-rated +49% to ¥6,245. PE stretched at 38.8x TTM.

pe:24.238.8forward_pe:N/A23.8div_yield:1.18%1.25%fcf:+¥88B+¥44Bdata_date:2026-04-162026-05-28

Key Metrics

38.8

23.8

Fwd PE

2.5

P/B

11.5%

ROE

13.7%

Op Margin

D/E

1.25%

Div Yield

+¥44B

FCF

¥2.03T

Mkt Cap

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.[source](2026-02)
confirmed	Saudi Aramco	CENTUM VP DCS + AI control agents	CPA since 2012. AI agents deployed at Fadhili Oct 2025[source](2025-10)
confirmed	Shell	Robotics + AI plant maintenance	Long-term agreement Jun 2025[source](2025-06)
confirmed	ADNOC	ICSS, ESD, fire & gas systems	AED 2.6B ($708M) framework agreement[source](2025-01)
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[source](2026-04-13)

Sources & References

↗Yokogawa FY2025 Tanshin (May 7 2026)https://cdn-nc.yokogawa.com/1/20567/tabs/ir_202603tanshin-en.pdf ↗Rolls-Royce SMR DPCS contract announcementhttps://www.yokogawa.com/eu/news/press-releases/2026/2026-02-02 ↗World Nuclear News: Yokogawa SMR supplyhttps://world-nuclear-news.org/articles/yokogawa-to-supply-rolls-royce-smr-control-systems ↗Wylfa site selection + GBE-N contract April 2026https://www.powermag.com/rolls-royce-smr-taps-yokogawa-to-supply-control-systems-for-small-modular-reactor-fleet/↗Simply Wall St: Raised guidance + dividendhttps://longbridge.com/en/news/275455954

Peer Comparison

Company	PE	Fwd PE	ROE	Op Margin	FCF
IHI Corporation	23.7	22	26.8%	8.8%	+¥68B
Hitachi	28.96	27.58	13.65%	11.1%	+¥1,390B
Japan Steel Works	33.5	31.1	9.09%	8.4%	-¥19.7B
Yokogawa Electric	38.8	23.8	11.5%	13.7%	+¥44B
Fuji Electric	20.3	17.7	11.8%	10.3%	+¥51B
Kanadevia	10.97	11	5.2%	1.9%	-¥22.6B
Organo Corporation	27	27	21.7%	20.6%	+¥19B
Kurita Water Industries	22.3	21.8	6.8%	12.4%	+¥25B
Sumitomo Heavy Industries	19.3	18	5.0%	4.8%	-¥2.3B
Toyo Tanso	23.2	23.8	5.7%	14.6%	-¥5.8B (capex phase)
Okano Valve	21.6		8.2%	10.1%	+¥624M
Kobe Steel	8.7	8.5	7.2%	4.8%	N/A
Ebara	30.9	25.4	15.8%	12.1%	-¥51.5B (capex)
Stella Pharma			-9.8%	-23.6%	N/A
Teikoku Denki	10.49	9.5	12%	18%	N/A