DAIHEN Corporation
6622・Prime Market・Electric Appliances
Business
DAIHEN Corporation (株式会社ダイヘン) is a comprehensive electrical equipment maker founded in Osaka in 1919, forming a group consisting of the company, 55 consolidated subsidiaries, and 8 affiliated companies. Its business is broadly divided into three segments: "Energy Management," "Factory Automation," and "Material Processing." In Energy Management, it manufactures and sells various transformers, power receiving/transforming equipment, battery storage systems, and EV charging equipment; in Factory Automation, industrial robots and clean transfer robots; and in Material Processing, welding machines, plasma power supplies, and high-frequency power supply systems for semiconductor manufacturing. Its major customers span industries including electric power companies, semiconductor manufacturing equipment makers, and automobile manufacturers, with Tokyo Electron Miyagi (16.1% of sales) and Kansai Electric Power (9.9% of sales) disclosed as key business partners. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The group's manufacturing subsidiaries produce products at domestic and overseas plants, delivering them to customers through sales and service subsidiaries and a distributor network in a vertically integrated model. The majority of revenue comes from one-time product sales, but the group also handles repair and maintenance services. R&D expenses amounted to ¥7,534 million in FY2026 (ending March 2026), with a basic policy of differentiation through the development of "unique products" (naradewa seihin) that address social issues, thereby avoiding price competition. Fundraising is based principally on retained earnings, with efficiency pursued through intra-group cash concentration via a CMS (Cash Management System).
Company Strengths
Of net sales of ¥237,735 million, the business is diversified across three segments: Energy Management at 53.9%, Material Processing at 32.1%, and Factory Automation at 13.8%, giving it a structure that mutually offsets demand fluctuation risk in specific markets. In FY2026 (ending March 2026), the company achieved revenue growth in all three segments.
The order backlog at the end of FY2026 (ending March 2026) totaled ¥142,946 million (up 30.7% year on year), comprising ¥108,685 million in Energy Management, ¥26,515 million in Material Processing (up 88.7% year on year), and ¥7,745 million in Factory Automation (up 49.2% year on year). This order backlog substantially secures sales for the following period and beyond, enhancing the predictability of business performance.
The company has manufacturing and sales bases in the US, Europe, and Asia, achieving multi-regional expansion through Lorch Schweißtechnik GmbH in Germany (acquired in January 2024), DAIHEN VARSTROJ in Slovenia, DAIHEN, Inc. in the US, and others. It has positioned the mutual utilization of products and sales routes among its European subsidiaries to expand its European business as a key theme in its medium-term plan, and has a track record of building up sales channels and technology through M&A.
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive fiscal periods, from ¥160,618 million in FY2022 (ended March 2022) to ¥237,735 million in FY2026 (ending March 2026). The operating margin peaked at 8.9% in FY2023 (ended March 2023), declined to 7.1% in FY2025 (ended March 2025), but recovered to 7.9% in FY2026 (ending March 2026). Driven by external tailwinds such as increased capital expenditure by power infrastructure and semiconductor-related companies, Energy Management (operating margin of 11.0%) and Material Processing (9.7%) led the growth. Profit attributable to owners of the parent improved to ¥14,108 million (up 18.0% year on year), and earnings per share improved to ¥591.35 (up from ¥493.31). Leading indicators were also favorable, with orders received of ¥271,330 million (up 12.6% year on year) and an order backlog of ¥142,946 million (up 30.7% year on year).
Growth Strategy
Targeting sales of ¥280,000 million and improved operating margin, centered on three social challenges: decarbonization, automation, and semiconductors
Amid expansion of the power supply-demand adjustment market driven by progress in renewable energy adoption, the company is strengthening sales of Battery Storage Systems and Distributed Power Source Equipment. In FY2026 (ending March 2026), orders received reached ¥146,800 million (up 11.8% year on year) and the order backlog rose to ¥108,685 million (up 20.6%), and this is expected to contribute to earnings in the next fiscal year.
Against a backdrop of increasing demand for high-performance semiconductor devices for data centers driven by the spread of generative AI, investment related to leading-edge semiconductors has remained at high levels. The order backlog has grown to ¥26,515 million, up 88.7% year on year, and sales are expected to remain at high levels in the next fiscal year, centered on sales of ¥38,332 million to Tokyo Electron Miyagi.
Amid continued postponement of automotive-related investment both domestically and overseas, the company is promoting new customer development in the United States and China. The order backlog has grown to ¥7,745 million, up 49.2% year on year, but a decline in high-profitability projects remains a challenge. The company aims to improve its profit margin by strengthening cost reductions through production automation and the use of generative AI to improve efficiency in indirect operations.
In FY2026 (ending March 2026), DAIHEN MEXICO S.A. de C.V. was newly added to the scope of consolidation, strengthening the North American business. North American sales in FY2026 (ending March 2026) increased 27.2% to ¥7,318 million (from ¥5,755 million in the previous fiscal year). The exchange rate assumption for FY2027 (ending March 2028) is an average of ¥157/US dollar, and the yen depreciation environment is expected to act as an external factor boosting the yen-converted value of overseas sales.
Last updated: July 19, 2026