Daido Metal Co., Ltd.
7245・Prime Market・Transportation Equipment
Business
Daido Metal Co., Ltd., founded in 1939, is a comprehensive plain bearing manufacturer that forms a group consisting of the Company, 35 subsidiaries, and 3 affiliates. In addition to holding the world's top share in its core Powertrain Business (Automotive Engine Bearings), the Company operates the Marine & Energy Business (for marine vessels, power generation, and industrial machinery), the Life Business (for automotive parts), and the Frontier Business (aluminum die-casting and precision metal processing). With extensive global production and sales bases across North America, Europe, and Asia, overseas sales account for a substantial portion of net sales of ¥142,009 million. Leveraging tribology (friction, wear, and lubrication technology) as its core technology, the Company supplies products to a diverse range of industries, from automobiles to marine vessels and generators for data centers.
Business Model
Building on proprietary tribology technology, the company manufactures high-quality bearings at domestic and overseas production sites and sells them directly to automotive, marine, and industrial machinery manufacturers. By centrally manufacturing bimetal, the raw material, at domestic sites (the Company and Daido Metal Saga) and supplying it to group companies, the company achieves both quality control and cost control. Profitability has improved through strengthened profit management and price optimization (passing on price increases to sales prices), with the operating margin reaching 5.9% in FY2026 (ending March 2026).
Company Strengths
The Powertrain Business (Automotive Engine Bearings) and Low-Speed Marine Engine Bearings both maintained or achieved the world's top market share (company estimate) in calendar year 2025. As the world's only comprehensive plain bearing manufacturer, the company offers a broad product lineup spanning passenger cars, trucks, racing cars, and ships, and possesses technology, manufacturing know-how, and a customer base that competitors cannot easily replicate in a short period.
The company has established production and sales bases in North America (the U.S. and Mexico), Europe (Germany, the Czech Republic, and the U.K.), and Asia (Thailand, South Korea, Indonesia, and China), building a supply system located close to the production sites of major customers. Through a vertically integrated supply chain in which bimetal is centrally manufactured domestically and supplied to group companies, the company ensures consistent quality and stable supply.
After operating profit declined to ¥2,824 million (a margin of 2.4%) in FY2023 (ended March 2023), the company continuously implemented thorough profit management by product, promotion of price pass-through, and enhanced cost control. In FY2026 (ending March 2026), the company achieved operating profit of ¥8,371 million (a margin of 5.9%) and net income of ¥4,396 million (up 61.6% year on year), while also improving its equity ratio to 39.2% (up 2.2 percentage points year on year).
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), the company achieved net sales of ¥142,009 million (up 4.2% year on year), operating profit of ¥8,371 million (up 18.1% year on year), and profit attributable to owners of parent of ¥4,396 million (up 61.6% year on year). The significant increase in net profit was also supported by the recognition of a gain on sale of investment securities of ¥1,074 million as extraordinary income. Operating cash flow improved to ¥13,722 million (from ¥10,924 million in the previous fiscal year), and the equity ratio rose to 39.2% (from 37.0% in the previous fiscal year). Among external factors, yen depreciation boosted overseas sales, while the impact of U.S. tariff policy and rising labor costs were factors that reduced profit. For FY2027 (ending March 2027), the company forecasts net sales of ¥145,000 million and operating profit of ¥9,500 million (exchange rate assumptions: 1 USD/¥153, 1 EUR/¥182).
Growth Strategy
Promoting sustainable growth exceeding the cost of capital and enhanced shareholder returns under "Bridge to Daido 2030"
Continuing to strengthen profitability management and optimize pricing for Automotive Engine Bearings, while advancing a multi-pathway strategy to respond to increasing HEV demand. Progress in FY2026 (ending March 2026) was in line with plan, achieving segment profit of ¥9,806 million (up 5.6% year on year).
Expanding production capacity for marine bearings through capital investment, and driving demand creation in next-generation growth areas such as bearings for data center generators and industrial compressor bearings. In FY2026 (ending March 2026), the Marine & Energy Business achieved 10.6% revenue growth and the Life Business achieved 9.4% revenue growth, progressing toward establishing a growth foundation.
Continuing quality improvement, transportation cost reduction, and process improvement in the Automotive Aluminum Die-Cast Products and precision metal processed parts businesses. Segment loss in FY2026 (ending March 2026) narrowed to ¥755 million (from a loss of ¥1,362 million in the prior period), but a turnaround to profitability has not yet been achieved due to continued demand decline in the Thai and Chinese markets.
The Medium-Term Management Plan sets targets of a dividend payout ratio of 35% or more by FY2027 and 40% or more by FY2030. The annual dividend for FY2026 (ending March 2026) was ¥31 per share (payout ratio of 33.1%), with a forecast of ¥36 per share (33.7%) for FY2027 (ending March 2027), reflecting a trend of increasing dividends. In March 2026, a secondary offering of shares and share buyback were also carried out to restructure the shareholder base and improve liquidity.
At the Board of Directors meeting on March 10, 2026, a resolution was passed to introduce a restricted stock incentive plan for the employee stock ownership plan. Up to 3,228 employees are to be granted 100 shares each (disposal price of ¥1,005) (disposal date: October 27, 2026). The plan aims to support employees' asset building and provide incentives to enhance corporate value.
Last updated: July 19, 2026