日本 | 電気 横河電機 社長ミーティング

Research evidence excerpt

日本 | 電気 横河電機 社長ミーティング

e physical world. Looking

ahead, Yokogawa intends to further evolve its Physical AI through linkage with digital twins.

Strategic investment projects: In 4Q FY2025, profitability declined due to the intake of strategic

investment projects. However, Yokogawa views these projects as essential for future growth.

Strategic projects are those where profitability may be challenging in the initial phase (Train 1)

but where winning the initial project is expected to lead to subsequent revenue opportunities. In

some cases, not only service contracts but also system orders from Train 2 onward may become

sole-source contracts, enabling Yokogawa to secure profitability. In particular, if the initial project

involves data scanning, the likelihood of capturing subsequent Train 2 and later projects and

securing earnings is high. Yokogawa intends to continue pursuing strategic investment projects in

FY3/27. At the same time, the company conducts rigorous lifetime profitability management for

each individual project, and historically it has secured total profitability from strategic investment

projects. While Yokogawa cannot disclose lifetime profitability for individual strategic investment

projects, from an external perspective, the intake of such projects should be reflected in growth in

the services and recurring businesses (although there are other factors contributing to growth in

these areas).

Development of data center test and measurement business: Test and measurement orders in

FY3/25 amounted to¥42.0bn (+¥11.7bn YoY). Of this, optical spectrum analyzers accounted for

around 40% (approx. ¥16.0bn). This was a significant increase from just over 20% (approx. ¥6.0bn)

in FY3/25, with much of the increase coming from data center–related demand.