Daido Metal Co., Ltd.
7245・Prime Market・Transportation Equipment
Automotive Engine Bearings (Powertrain Business)
Core business boasting the world's top share, centered on automotive engine bearings
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (segment total, including internal sales) | ¥75,675 million | ¥72,589 million | ↑ |
| Sales to external customers | ¥74,474 million | ¥72,102 million | ↑ |
| Segment profit | ¥9,806 million | ¥9,285 million | ↑ |
| Segment profit margin | 12.9% | 12.8% | ↑ |
| YoY sales growth rate | 4.3% | - | ↑ |
| YoY profit growth rate | 5.6% | - | ↑ |
Business Details
The segment manufactures and sells engine bearings mainly for passenger cars, trucks, and racing cars, along with motorcycle engine bearings, and engine auxiliary equipment bearings such as those for turbochargers and balancer mechanisms. With extensive production sites both in Japan and overseas (North America, Asia, Europe), it accounts for approximately 52% of the Group's external customer sales, making it the largest segment. In FY2026 (ending March 2026), backed by solid demand in the U.S. and the effect of a weaker yen, domestic sales rose slightly while overseas sales increased by approximately 7%, resulting in higher revenue and profit.
Recent Overview
Overseas sales rose approximately 7% on solid U.S. demand and yen depreciation effect, achieving higher revenue and profit
Global new vehicle sales for FY2026 (calendar year 2025) increased 3.6% year on year. Domestically (FY2025), sales fell short at approximately 4.53 million units, down 0.9% year on year, while overseas, U.S. sales rose 2.7% year on year, European sales rose 2.0%, and Chinese sales rose 9.4%. The Group's domestic sales increased slightly year on year, while overseas sales increased approximately 7% year on year due to solid demand in the U.S. and the effect of yen depreciation. As a result, segment sales were ¥75,675 million (up 4.3% year on year) and segment profit was ¥9,806 million (up 5.6% year on year). Note that Japanese automakers' sales in China declined 7.9%, which continues to warrant close monitoring.
Key Products
Growth Drivers
- Solid automotive demand in the U.S. market and the boosting effect of yen depreciation on overseas sales
- Improved profit margins through strengthened profitability management and progress in price optimization
- Promotion of the multi-pathway (all-directional) strategy against a backdrop of increasing HEV demand
- Expansion of share through increased sales of truck engine bearings and development of new customers
- Advancement of core business refinement measures under the medium-term management plan "Bridge to Daido 2030"
Risks
- Medium-to-long-term decline in demand for internal combustion engine bearings due to the slump in the European automotive industry and progress of EV adoption
- Impact on orders from declining sales of Japanese automakers in China (down 7.9% in calendar year 2025)
- Negative impact from U.S. tariff policy (profit-reducing factors from increased labor costs and tariff effects)
- Cost pressure from persistently high raw material and energy prices and rising labor costs
- Foreign exchange risk (reduction in overseas sales value if the yen appreciates)
Last updated: June 22, 2026