Daikin Industries (6367) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 net sales of ¥1,426.8 billion (up 17.5% YoY) and operating profit of ¥130.6 billion (up 7.6%), driven by yen depreciation, U.S. tariff refunds, and strong demand.

• Operating profit margin declined by 0.8 percentage points year-over-year due to cost increases outpacing mitigation efforts.

• Profit attributable to owners of parent was ¥80.1 billion, down 1.7% YoY, while comprehensive income surged 146% to ¥145.5 billion on foreign currency gains.

• Strategic focus includes margin improvement, expanding high value-added products, and cost reduction initiatives.

Financial highlights

• Net sales rose to ¥1,426.8 billion, up 18% year-over-year; operating profit increased to ¥130.6 billion, up 8%.

• Ordinary profit reached ¥120.8 billion (up 2% YoY); profit attributable to owners was ¥80.1 billion (down 2% YoY).

• Gross profit increased to ¥493.9 billion from ¥433.2 billion year-over-year.

• FX effects contributed ¥116.5 billion to net sales and ¥5.5 billion to operating profit.

• Operating profit margin fell from 10.0% to 9.2% year-over-year.

Outlook and guidance

• FY2026 net sales forecast at ¥5,150.0 billion (up 3% YoY); operating profit forecast at ¥436.0 billion (up 5% YoY).

• Profit attributable to owners of parent is forecast at ¥278.0 billion, up 1% YoY, with EPS expected at ¥949.32.

• Segment guidance: Air Conditioning and Refrigeration Equipment net sales to rise 3%, Chemicals up 7%.

• Dividend forecast for FY2027 is ¥360 per share, up from ¥340 in FY2026.

• Focus on margin improvement, cost reductions, and growth in high-profit domains per FUSION 30 plan.