DAIHATSU INFINEARTH MFG.CO.,LTD.
6023・Standard Market・Transportation Equipment
Business
Daihatsu Infineers Co., Ltd. is an internal combustion engine manufacturer whose core business is the manufacture and sale of marine and land-based diesel engines. Of its consolidated net sales of ¥88,066 million, approximately 82% is accounted for by Marine Engine Related business, with domestic and overseas shipyards and shipping companies as its primary customers. In addition to domestic manufacturing sites (Moriyama Plant and Himeji Plant), the company operates a global network with sales subsidiaries in Singapore, Europe, the United States, and China. In land-based engines, the company supplies public infrastructure and industrial applications for emergency power and continuous-duty power generation. As Other Divisions, the company also engages in precision parts, industrial equipment, real estate leasing, and electricity sales businesses, operating through a group structure comprising 18 companies.
Business Model
In the core Internal Combustion Engine Division, the company builds a structure that combines initial revenue from lump-sum sales of engines for newly built vessels with recurring, stock-type revenue from maintenance and parts supply for engines already in operation. Marine engines have a high export ratio of 63.2%, sold globally with a focus on Asia and Europe. In land-based engines, the accumulation of order backlog (¥9,518 million at fiscal year-end) enhances the visibility of future sales. The company is also expanding into the servitization business by enhancing remote monitoring and anomaly diagnosis services utilizing AI and IoT.
Company Strengths
As of the end of FY2026 (ending March 2026), the marine engine order backlog reached ¥102,284 million (up 53.6% year on year), land-based engines reached ¥9,518 million (up 33.0% year on year), and the company-wide total reached ¥113,500 million (up 51.2% year on year). The company holds an order backlog exceeding annual sales, providing high certainty of revenue over multiple years. This is attributable to the accumulation of its own sales capabilities, product competitiveness, and customer base.
The company has sales subsidiaries in Singapore, Europe, the United States, and China, building a global framework with an export ratio of 51.8%. Through a technology alliance with Rolls-Royce Solutions GmbH of Germany (through 2033), the company complements its product lineup, and technology licensing agreements with two Chinese companies (through 2031-2032) are also ongoing. Over 100 years of business track record and an international technology and sales network constitute a competitive advantage that is difficult to replicate in a short period.
The operating margin improved by 5.1 percentage points over five years, from 3.6% in FY2022 (ended March 2022) to 8.7% in FY2026 (ending March 2026). ROE rose from 4.7% to 12.7% over the same period, achieving and exceeding the company's own target of 12.0%. The cost of sales ratio also declined by 0.7 percentage points from the previous fiscal year to 75.8%, confirming the improvement in profitability structure through numerical figures.
ENVALITH's Perspective
Performance Trend
Revenue achieved four consecutive years of growth, rising from ¥57,600 million in FY2022 (ending March 2022) to ¥88,781 million in FY2025 (ending March 2025), but FY2026 (ending March 2026) saw its first decline, at ¥88,066 million (down 0.8% year on year). The main cause was a decline in average selling prices due to a rising share of small-medium engines in the sales mix. Operating profit was ¥7,621 million (down 0.2% year on year), remaining nearly flat, while gross profit improved from ¥20,901 million to ¥21,337 million. Ordinary profit rose to ¥7,959 million (up 4.7% year on year), aided by the recording of ¥203 million in foreign exchange gains, and profit attributable to owners of parent increased to ¥5,920 million (up 3.6% year on year), securing profit growth. ROE improved to 12.7% (from 12.0% in the previous fiscal year). As for external factors, the high level of outstanding orders in the shipbuilding and shipping industries has supported new orders, while uncertainty in shipping market conditions and foreign exchange rates has affected Maintenance Services revenue.
Growth Strategy
Building competitiveness toward the 2030s through next-generation fuel compatibility, strengthened production infrastructure, and DX investment
Focusing on the development of engines compatible with next-generation fuels such as methanol and ammonia, and their market launch. At the Himeji Plant, production equipment for next-generation fuels is being enhanced, utilizing subsidies (¥400 million in national government subsidies recorded in FY2026 (ending March 2026)). A significant increase in unit sales of Marine Diesel Engines (Large / Dual-Fuel) is expected next fiscal year as well.
Implementing area expansion at the Himeji Plant and process improvement/logistics reform investment at the Moriyama Plant. A group company has begun construction of a new plant in Gunma Prefecture for fuel injection system equipment, and relocation of the production base for Precision Parts is also underway. Capital expenditure on property, plant and equipment in FY2026 (ending March 2026) expanded to ¥11,372 million, approximately 1.8 times the previous fiscal year.
Working to build support systems such as engine condition monitoring systems utilizing AI and IoT. In the next fiscal year, system investment centered on engine condition monitoring, among other areas, is planned. The company aims to expand after-sales service revenue and strengthen customer retention by providing value across the entire product lifecycle.
In FY2026 (ending March 2026), the company revised its grading, personnel evaluation, compensation, and continued employment systems. By linking company/organizational policies and goals with individual goals, the company is promoting achievement of its medium- to long-term vision "POWER! FOR ALL beyond 2030" through its personnel system. The resulting increase in personnel costs has already been factored in as a fixed cost burden for the next fiscal year.
The company plans to transition to a company with an Audit and Supervisory Committee, subject to approval of articles of incorporation amendments, at the 66th Ordinary General Meeting of Shareholders scheduled to be held on June 26, 2026. Outside directors will be appointed as members of the Audit and Supervisory Committee, strengthening the board's oversight function. Under the new executive structure, three outside directors (all three serving as Audit and Supervisory Committee members) will be appointed.
Last updated: July 19, 2026