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DAIKIN INDUSTRIES,LTD.

6367・Prime Market・Machinery

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ダイキン工業株式会社 logo
DAIKIN INDUSTRIES,LTD.6367

Air Conditioning & Refrigeration Business

The core segment of Daikin Industries, a global air conditioning business accounting for approximately 92% of net sales.

PeriodCurrentPreviousChange
Segment net sales¥4,621,131 million¥4,384,548 million↑
Segment operating profit¥376,991 million¥350,987 million↑
Segment assets¥4,906,501 million¥4,401,769 million↑
Depreciation and amortization¥189,510 million¥166,350 million↑
Unamortized goodwill balance (period-end)¥258,981 million¥251,503 million↑
Increase in property, plant and equipment and intangible assets¥225,403 million¥274,016 million↓
Impairment loss (AHT Cooling Systems)¥11,849 million¥0 million↓

Business Details

Daikin Industries' flagship business, engaged in the manufacture, sale, and installation of residential, commercial, and Applied Air Conditioning Equipment, refrigeration units, filters, marine equipment, and related products. The business operates globally through domestic and overseas consolidated subsidiaries across Japan, the Americas, Europe, Asia, China, and the Middle East/Africa. Centered on energy-saving, low-global-warming-potential refrigerants, and carbon-neutral compatible products, the segment is driving expansion of Applied Air Conditioning for data centers and the Service & Solutions Business.

Recent Overview

Both net sales and operating profit increased year on year, but China and Asia struggled; impairment recorded at AHT.

In FY2026 (ending March 2026), the Air Conditioning & Refrigeration Business segment recorded net sales of ¥4,621,131 million (up 5.4% year on year) and operating profit of ¥376,991 million (up 7.4% year on year). While the Americas, Europe, Middle East/Africa, and Japan drove growth, China saw a decline in sales due to the real estate downturn, and Asia/Oceania also saw a decline due to unfavorable weather and other factors. An impairment loss of ¥11,849 million was recorded on customer-related assets and trademark rights of consolidated subsidiary AHT Cooling Systems. Under the new strategic management plan 'FUSION 30,' the policy is to expand the solutions business and grow operations in the North America and IMEA growth regions.

Key Products

product
Residential Air Conditioning Equipment

In Japan, the lineup centers on 'Urusara X,' which features high outdoor-temperature toughness cooling and premium cooling functions. In the US, sales expansion is focused on 'Fit,' an environmentally premium product using the low-global-warming-potential refrigerant R32. In Europe, sales expansion of high-value-added products is being promoted in Germany, the UK, and France.

product
Commercial Air Conditioning Equipment

In Japan, high-value-added products such as the 'FIVE STAR ZEAS,' 'VRV 7,' and 'VRV Q' series are being deployed. In Europe, proposals for products using the low-global-warming-potential refrigerant R32 are being strengthened. In China, energy-saving proposals responsive to carbon-neutral policy are being reinforced.

product
Applied Air Conditioning Equipment

Production capacity for custom air handling units for data centers is being expanded, mainly in the US, to drive sales growth. Demand is being steadily captured through utilization of the chiller plant in Mexico and expansion of production capacity at existing plants. The business is promoting a shift toward a circular solutions business through combination with the Service business.

product
Residential Heat Pump Water Heating Equipment

In Europe, a full-fledged demand recovery has not yet materialized due to delays in combustion heating regulations and instability in subsidy programs, but sales grew in Germany, where replacement from combustion heating is progressing, through the use of new products. Sales exceeded the prior period, aided also by a positive foreign exchange effect.

service
Service & Solutions Business

The business is promoting monetization of global maintenance, repair services, and parts sales. In the US Applied Air Conditioning field, it is accelerating the shift toward a circular solutions business by leveraging maintenance/upkeep menus, equipment renewal proposals, and instrumentation engineering capabilities. In China, home solutions utilizing IoT and data analytics are being strengthened.

product
Filter Business

Although market contraction continues due to intensifying price competition in China and restrained domestic investment, overall demand remained firm. Sales exceeded the prior period, driven by large OEM orders in the US, shipments for a large project in southern Europe and capture of renewal demand in northern Europe, and sales expansion in electronics/semiconductors and hospitals in the Asia region, including the Middle East and India.

product
Marine Business

Although sales of refrigeration units fell below the prior period, sales of marine container refrigeration units grew, and overall sales of the Marine Business exceeded the prior period.

Growth Drivers

  • Expansion of the market for Applied Air Conditioning Equipment for data centers (Americas, Europe, Middle East, Asia)
  • Sales expansion of Commercial Air Conditioning Equipment in Europe (increased demand for products using the low-global-warming-potential refrigerant R32)
  • Sales expansion of residential and commercial air conditioning in India, Middle East, and Africa (IMEA)
  • Increased domestic commercial air conditioning replacement demand and inbound demand, and residential demand driven by extreme heat
  • Promotion of monetization of the global Service & Solutions Business (shift toward a circular solutions business)
  • Improved profit margins through promotion of sales pricing policy and cost reductions (e.g., material substitution from copper to aluminum)
  • Business expansion in the North America and IMEA growth regions under the new strategic management plan 'FUSION 30'

Risks

  • Sluggish demand for residential air conditioning in the US (elevated distribution inventory following refrigerant regulation changes, persistently high mortgage rates)
  • Demand slowdown due to the prolonged real estate downturn in China
  • Sluggish demand for residential heat pump water heating equipment in Europe (uncertainty over subsidy programs, delays in combustion heating regulations)
  • Risk of inflation and supply chain disruption stemming from US tariff policy
  • Sluggish demand in Asia/Oceania due to unfavorable weather and uncertain economic outlook
  • Foreign exchange risk (impact on yen-translated sales when the yen appreciates)
  • Risk of additional impairment due to failure of consolidated subsidiaries (including AHT Cooling Systems) to meet business plans
  • Geopolitical risk (rising transportation costs and business disruption due to deteriorating conditions in the Middle East)

Last updated: June 24, 2026