DAIKIN INDUSTRIES,LTD.
6367・Prime Market・Machinery
Business
Daikin Industries, founded in 1924, is a global air conditioning and chemicals manufacturer that marked its 100th anniversary in 2024. Its Air Conditioning & Refrigeration Business, which accounts for approximately 92% of net sales, offers a wide range of products from residential room air conditioners to Commercial Air Conditioning Equipment, Applied Air Conditioning Equipment (chillers and air handling units), refrigeration and refrigerated display cases, and air filters. The Chemicals Business supplies fluorochemical products such as Fluorocarbon Gas (Refrigerant), Fluoropolymer & Fluoroelastomer, and Chemical Products (Semiconductor Etching Agents, Water/Oil Repellents, etc.) to the semiconductor, automotive, and data center industries. With 324 consolidated subsidiaries and 16 equity-method affiliates, the company has built a global production and sales network spanning Japan, the Americas, Europe, China, Asia, and the Middle East and Africa. Its major customers span a diverse range including homeowners, construction and real estate developers, data center operators, manufacturers, and distribution and retail businesses.
Business Model
Building on manufacturing and sales of air conditioning equipment and chemical materials, the company is promoting a composite revenue model that combines maintenance/repair services, parts sales, and solutions businesses such as BMS (Building Management Systems). It has established its own factories, sales subsidiaries, and service networks globally, and aims to improve profit margins by balancing pricing policies for high value-added products (such as energy-saving products and products compatible with low-global-warming-potential refrigerants) with cost reductions such as material substitution from copper to aluminum. Under the strategic management plan "FUSION30," the company is accelerating its shift toward a circular solutions business.
Company Strengths
Through 324 consolidated subsidiaries and 16 equity-method affiliates, the company holds manufacturing and sales bases in all major regions, including Japan, the Americas, Europe, China, Asia, and the Middle East and Africa. Sales in the Air Conditioning & Refrigeration Business reached ¥4,621,131 million (FY2026 (ending March 2026)), and by covering a product line spanning from residential units to large-scale Applied Air Conditioning Equipment, the company diversifies its dependence on any specific region or application.
Since beginning production of Fluorocarbon Gas (Refrigerant) in 1938, the company has maintained a vertically integrated system for in-house manufacturing of Fluoropolymer & Fluoroelastomer, Chemical Products (Semiconductor Etching Agents, Water/Oil Repellents, etc.), and refrigerant gases. Sales in the Chemicals Business were ¥281,469 million (FY2026 (ending March 2026)). In-house production of refrigerants and materials underpins competitive advantages by stabilizing procurement costs and supporting the development of differentiated products such as the low-GWP refrigerant R32.
Group R&D expenses for FY2026 (ending March 2026) totaled ¥150,756 million. Centered on the Technology Innovation Center (TIC), the company promotes industry-academia collaboration with institutions such as Institute of Science Tokyo, the University of Tokyo, and Osaka University, as well as co-creation with startups. It continues to advance core air conditioning technologies such as compressors, motors, and inverters, while developing differentiated products including low-GWP refrigerant chillers and custom air handling units for data centers.
ENVALITH's Perspective
Performance Trend
For FY2026 (ending March 2026), revenue was ¥5,015,036 million (up 5.5% year on year), operating profit was ¥414,991 million (up 3.3%), and profit attributable to owners of parent was ¥275,229 million (up 4.0%). Revenue grew for the fifth consecutive year, exceeding ¥5 trillion for the first time, but the growth rate decelerated from 8.1% in the previous fiscal year to 5.5%. The operating margin declined to 8.3% from 8.5% in the previous fiscal year, weighed down by a sharp decline in Chemicals Business profit (down 28.3% year on year) and an impairment loss of ¥11,849 million related to AHT. On the other hand, ordinary profit improved significantly, up 11.4% year on year, due to a substantial reduction in foreign exchange losses (from ¥9,163 million in the previous fiscal year to ¥1,448 million in the current fiscal year), among other factors. Comprehensive income expanded sharply to ¥572,694 million (up 123.1% year on year), and an increase in the foreign currency translation adjustment (up ¥255,965 million) pushed net assets up to ¥3,316,538 million. For FY2027 (ending March 2027), the company forecasts moderate growth, with revenue of ¥5,150,000 million (up 2.7%) and operating profit of ¥436,000 million (up 5.1%).
Growth Strategy
Advancing expansion of the Solutions Business and business in the North America and IMEA growth regions under FUSION 30
Under the new five-year plan "FUSION 30" announced on May 12, 2026, the company aims to become a highly profitable, sustainable enterprise that provides "new value in environment and air." The plan is built on three pillars: accelerating growth of the Solutions Business, expanding business in the North America and IMEA growth regions, and upgrading the management foundation (AI utilization, efficiency improvement in indirect operations).
Expanding sales for data centers, primarily in the United States, by leveraging the launch of a new custom air handling unit plant and the effects of recent acquisitions. The company is accelerating its shift toward a circular solutions business by leveraging its existing sales network, maintenance service menu, and instrumentation engineering capabilities to propose equipment replacement, aiming for continuous accumulation of service revenue.
The group is promoting, on an integrated basis, material substitution from copper to aluminum, cost reduction of base models, standardization of core components, and labor savings through automation of production equipment. These measures are being combined with strengthening the supply chain, including responses to U.S. tariff measures, with the aim of improving profit margins. In FY2026 (ending March 2026), the operating margin remained at 8.3%, and the effectiveness of these measures continues to be tested.
The company has confirmed results including continued sales expansion in India, expanded sales for large-scale projects in the Middle East such as Saudi Arabia and the UAE, and growth in residential and commercial air conditioning in Turkey. Under "FUSION 30," the company is accelerating the concentration of management resources in growth regions, aiming to diversify its global sales and profit structure.
The company maintains a policy of continued dividend increases, with an annual dividend of ¥340 for FY2026 (ending March 2026) (up from ¥330 in the previous fiscal year) and a forecast of ¥360 for FY2027 (ending March 2027). The payout ratio is 36.2% (FY2026, ending March 2026). As a subsequent event, the company has resolved to implement a share buyback totaling approximately ¥350.0 billion via ToSTNeT-3 (commitment-type FCSR) on May 13, 2026, aiming to improve capital efficiency and significantly strengthen shareholder returns.
Last updated: July 19, 2026