Yaskawa Electric (6506.T) 2Q above expectations; focus on order trends and procurement production trends from 2H onward; Buy...

Equity Research 9 October 2026 | 10:01PM JST

Yaskawa Electric (6506.T) 2Q above expectations; focus on order trends and procurement/production trends from 2H onward; Buy maintained

6506.T 12m Price Target: ¥5,500 Price: ¥4,806 Upside: 14.4% BUY Yuichiro Isayama n 2Q operating profits of ¥13.6 bn beat our estimate of ¥12.0 bn | Goldman Sachs Japan Co., Ltd. and market consensus of ¥11.9 bn (source: LSEG Takato Enoki SmartEstimate), exceeding expectations. 2Q orders also reached | Goldman Sachs Japan Co., Ltd. ¥185.4 bn (up 38% yoy, up 13% qoq), beating our estimate of ¥158.0 bn, which had assumed flat orders qoq. Yaskawa Electric revised down its full-year operating profit guidance to ¥57.5 bn from ¥60.0 bn, as it said the impact of the production Key Data _____________________________________ constraints stemming from the ERP issues, the key focus of this Market cap: ¥1.2tr / $7.9bn Enterprise value: ¥1.3tr / $8.4bn past summer, has not been fully offset. However, this still 3m ADTV: ¥26.8bn / $167.7mn Japan exceeded our prior estimate of ¥55.0 bn and market consensus Japan Industrials M&A Rank: 3 of ¥55.8 bn, which we also think beat expectations. Leases incl. in net debt & EV?: No

n Despite the upside surprises in orders and earnings, and signs GS Forecast __________________________________ 2/26 2/27E 2/28E 2/29E that the ERP issues are coming under control, we came away Revenue (¥ bn) Op. profit (¥ bn) New with the impression that the company’s tone at the briefing was Op. profit (¥ bn) Old subdued. We think this is mainly because (1) the company Op. profit CoE (¥ bn) 48.0 57.5 -- -- EPS (¥) New indicated that uncertainty remains around component EPS (¥) Old P/E (X) procurement and price pass-through from 2H onward, P/B (X) 2.0 2.4 2.4 2.3 particularly heading into FY2/28, and (2) signs of advance CROCI (%)

ordering are intensifying across the FA industry as a whole, 5/26 8/26 11/26E 2/27E EPS (¥) not only at Yaskawa Electric, with supply-demand tightness becoming more pronounced due to customer requests for GS Factor Profile ______________________________ Growth

higher production and delivery delays. The company Financial Returns emphasized in particular that it wants to proceed cautiously in responding to higher production volumes and in procuring Multiple

components from 2H onward. Integrated

n We raise our operating profit estimate to the level of company Percentile 20th 40th 60th 80th 100th

guidance (to ¥57.0 bn from ¥55.0 bn), but leave our FY2/28 6506.T relative to Japan Coverage estimates onward unchanged. We think greater confidence 6506.T relative to Japan Industrials

around component procurement and the response to higher Source: Company data, Goldman Sachs Research estimates. See disclosures for details. production volumes from 2H onward will be needed before

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Yaskawa Electric (6506.T)

Yaskawa Electric (6506.T) Income Statement (¥ bn) ___________________________________ BUY Rating since Oct 13, 2025 2/26 2/27E 2/28E 2/29E Total revenue Cost of goods sold ( ) SG&A ( ) Ratios & Valuation __________________________________________ R&D ( /26 2/27E 2/28E 2/29E Other operating inc./(exp.) -- -- -- -- P/E (X) EBITDA P/B (X) 2.0 2.4 2.4 2.3 Depreciation & amortization ( ) FCF yield (%) 0.6 0.7 4.8 5.2 EBIT EV/EBITDAR (X) Net interest inc./(exp.) 2.9 (1.3) (1.3) (1.3) EV/EBITDA (excl. leases) (X) Income/(loss) from associates 0.8 1.0 1.0 1.0 CROCI (%) Pre-tax profit ROE (%) Provision for taxes ( ) Net debt/equity (%) Minority interest (1.3) (1.0) (1.0) (1.0) Net debt/equity (excl. leases) (%) Preferred dividends -- -- -- -- Interest cover (X) Net inc. (pre-exceptionals) Days inventory outst…