Yaskawa Electric (6506.T): Feedback from post-results talks with management (July 2026)

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Yaskawa Electric (6506.T): Feedback from post-results talks with management (July 2026)

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13 Jul 2026 07:56:02 ET │ 11 pages

Yaskawa Electric (6506.T)

Feedback from post-results talks with management (July 2026)

CITI'S TAKE

We had the opportunity to speak with Ayumi Hayashida, Director and

Managing Executive Officer of Yaskawa Electric, at 16:30 (Japan time) on

July 13. Key points up for discussion included the outlook for improvement

in the profit impact from core IT system migration issues, factors behind Takahiro InoueAC

margin deterioration in the robotics business and the likelihood of their +81-3-6776-4646

continuing, and order trends and the outlook heading into Q2. While takahiro.inoue@citi.com

orders are likely to remain solid, we received the impression that

downward pressure on OP from core IT system migration issues will

continue to some extent in Q2 (we estimate ¥2bn). Yaskawa Electric's

stock price fell approximately 14% on the day on July 13 following weak Q1

results. Near-term earnings uncertainty will likely cause the stock to

underperform relative to the sector for the time being, in our opinion.

• Order trends and outlook — Q1 orders exceeded both our and the

company's expectations. For Q2, the company expects order levels for both

motion control and robotics to remain at Q1 levels. June servo motor orders

increased MoM from May, reaching levels close to the March high figures

and apparently marking a record monthly high. Inverter orders have

maintained stable levels from March through May, with June at similar

levels. Robot orders, like servo motor orders, declined in April-May versus

March, but June orders appear to be at April-May levels. As in the initial

plan, the company continues to expect a recovery in automotive robot