Daikin Industries (6367) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, rose 10.1% year-over-year to ¥3,593.2 billion, with operating profit up 4% to ¥318.7 billion and ordinary profit up 3.7% to ¥292.5 billion.

• Profit attributable to owners of parent declined 3.7% year-over-year to ¥186.7 billion, and comprehensive income fell 8.6% to ¥298.3 billion.

• Air conditioning business drove growth despite European heat pump slowdown and delayed US market share recovery, while chemicals business saw profit decline due to weak semiconductor and LAN cable demand.

• Earnings per share for the period were ¥637.72, down from ¥662.19 in the prior year.

Financial highlights

• Gross profit increased to ¥1,231.5 billion from ¥1,130.4 billion year-over-year, while selling, general and administrative expenses rose to ¥912.8 billion.

• Total assets grew to ¥5,306.9 billion as of December 31, 2024, up from ¥4,880.2 billion at March 31, 2024.

• Net assets increased to ¥2,903.5 billion, with an equity ratio of 53.6%.

• Net cash provided by operating activities surged to ¥426.6 billion, while net cash used in investing activities increased to ¥289.8 billion.

• Net cash used in financing activities was ¥37.7 billion, with cash and cash equivalents at period-end totaling ¥768.2 billion.

Outlook and guidance

• Full-year net sales forecast is ¥4,770.0 billion, up 8.5% year-over-year, with operating profit projected at ¥428.0 billion and profit attributable to owners of parent at ¥267.0 billion.

• Full-year EPS is forecast at ¥912.01.

• Dividend per share for FY2025 is forecast at ¥320, including a ¥50 commemorative dividend for the 100th anniversary.

• Annual plan remains unchanged; focus on expanding sales in strong demand regions and businesses, and implementing measures to adapt to changing business environment.