Daido Steel Co., Ltd.
5471・Prime Market・Iron & Steel
Specialty Steel
Core segment of Daido Steel centered on structural steel and tool steel for automotive and industrial machinery applications
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (external customers) | ¥207,781 million | ¥210,162 million | ↓ |
| Segment profit (operating profit) | ¥13,380 million | ¥12,088 million | ↑ |
| Segment assets | ¥248,554 million | ¥221,287 million | ↑ |
| Depreciation and amortization | ¥9,436 million | ¥9,227 million | ↑ |
| Capital expenditure | ¥14,095 million | ¥15,430 million | ↓ |
| Adjusted operating profit | ¥11,302 million | ¥13,105 million (change from prior period: -¥1,803 million) | ↓ |
Business Details
Manufactures and sells specialty steel products such as structural steel and tool steel, forming an integrated value chain together with group companies including Daido DM Solutions (a distribution and secondary processing subsidiary), Daido Kogyo (distribution and raw material procurement), Daido Ecomet (raw material procurement), and Daido Technica (maintenance and inspection). Major demand sources are the automotive and industrial machinery sectors. The segment has also established distribution and secondary processing bases in Asia (Thailand, Singapore, Malaysia, Taiwan), building a global supply chain.
Recent Overview
Revenue declined due to weak tool steel demand despite a volume increase from industrial machinery recovery, while profit increased on improved margins
In FY2026 (ending March 2026), structural steel volume increased as automotive-related demand was flat year on year while industrial machinery-related demand recovered gradually. Meanwhile, tool steel volume decreased due to weak automotive-related demand. As a result, revenue decreased to ¥207,781 million (down ¥2,380 million, or 1.1%, year on year), but segment profit increased to ¥13,380 million (up ¥1,291 million year on year). Adjusted operating profit was ¥11,302 million, down ¥1,803 million year on year. For the next fiscal year (FY2027, ending March 2027), revenue is projected at ¥230,000 million and adjusted operating profit at ¥8,300 million.
Key Products
Growth Drivers
- Development of highly corrosion-resistant materials for semiconductor manufacturing equipment and strengthening of the global supply chain (introduction of a vacuum arc remelting furnace at the Chita No. 2 Plant)
- Expansion of sales of specialty steel products for e-Axles (response to electrification)
- Development of hydrogen embrittlement-resistant steel for clean energy applications
- Continued gradual recovery in industrial machinery-related demand leading to increased volume
- Securing margins through thorough cost reduction and appropriate pass-through of costs to sales prices
- Capturing global demand by leveraging Asian bases (Thailand, Singapore, Malaysia, Taiwan)
Risks
- Risk of continued weak sales and declining demand from major automotive-related customers (particularly Japanese manufacturers), amid sluggish share of Japanese manufacturers in China and ASEAN
- Risk of rising raw material and fuel costs due to elevated and rising steel scrap (H2 grade) prices (FY2026 actual: ¥35.7 thousand/ton; next fiscal year forecast: ¥44.5 thousand/ton)
- Risk of prolonged weakness in automotive-related demand for tool steel
- Risk of one-time costs arising from changes in production allocation under the High-Alloy Process Reform Project
- Instability in the international supply chain due to US trade policy (tariffs) and geopolitical risks (situations in Ukraine and the Middle East, US-China tensions)
- Risk that the pace of recovery in industrial machinery-related demand falls short of expectations
Last updated: June 30, 2026