Daikin Industries (6367) Q2 2025 earnings summary

Executive summary

• Net sales rose 12% year-over-year to ¥2,493.1B for H1 FY2024, achieving record highs, with strong demand in India and Japan and strategic cost reductions.

• Operating profit increased 4.6% year-over-year to ¥246.6B, while ordinary profit reached ¥224.2B (up 1.4% YoY).

• Profit attributable to owners of parent was ¥151.7B, down 0.9% YoY.

• Comprehensive income dropped 75.2% YoY to ¥85.8B, mainly due to foreign currency translation losses.

• Air Conditioning business offset slowdowns in Europe and the Americas with growth in Applied and Commercial segments.

Financial highlights

• Gross profit increased to ¥860.8B; gross profit margin slightly decreased to 34.5%.

• Operating margin for the period was 9.9%.

• Cash and deposits increased by ¥118.5B to ¥827.2B; cash and cash equivalents at period end rose to ¥688.4B.

• Equity ratio improved to 54.4% from 53.0% a year earlier.

• Earnings per share was ¥518.00, slightly down from ¥522.68 YoY.

Outlook and guidance

• Full-year FY2024 sales and operating profit forecasts revised upward to ¥4,770.0B and ¥428.0B, respectively.

• Profit attributable to owners of parent expected at ¥267.0B, up 2.6% YoY.

• Earnings per share forecasted at ¥912.01 for the full year.

• Annual dividend forecast raised to ¥320 per share, including a ¥50 commemorative dividend.

• Despite challenges in the Americas, Europe, and China, focus remains on margin improvement, cost reductions, and growth investments.