Daikin Industries (6367) Q2 2027 earnings summary

Executive summary

• H1 FY2026 net sales rose 17.4% YoY to ¥2,910.8bn and operating profit rose 9.8% to ¥270.8bn, both record highs.

• Operating margin was 9.3%, down 0.6 percentage points YoY, but improved from Q1 to Q2.

• FY2027 forecasts were raised to ¥5,440bn net sales, ¥455bn operating profit and ¥280bn parent-attributable profit.

Financial highlights

• H1 gross profit increased to ¥995.9bn from ¥882.7bn; SG&A rose to ¥725.1bn from ¥636.1bn.

• Ordinary profit rose 2.2% YoY to ¥247.2bn; profit attributable to owners of parent rose 7.5% to ¥173.0bn.

• Excluding FX effects, H1 net sales increased 9% and operating profit increased 7% YoY.

• Operating profit benefited from ¥49.2bn sales expansion, ¥46.0bn selling-price gains and ¥35.0bn cost reductions; raw materials and related costs reduced profit by ¥77.0bn.

Outlook and guidance

• FY2027 forecast: net sales ¥5,440bn, operating profit ¥455bn, ordinary profit ¥417bn and parent-attributable profit ¥280bn.

• FY2027 operating margin is forecast at 8.4%; H2 margin is targeted to improve 0.7 percentage points YoY.

• Forecast FX rates are ¥155/$, ¥180/€ and ¥22.8/RMB; FX is expected to reduce full-year operating profit by ¥10bn YoY.

• Segment operating profit forecasts were raised to ¥404bn for Air Conditioning and Refrigeration Equipment, ¥45bn for Chemicals and ¥6bn for Others.