(Alliance News) - Daikin Industries Ltd on Tuesday raised its dividend and set out a new five-year plan as it reported higher earnings for the 2026 financial year.

The Osaka, Japan-based air conditioning manufacturer said attributable profit rose 4.0% to JPY275.23 billion, around USD1.75 billion, in the financial year to the end of March 2026, from JPY264.76 billion a year prior.

Net sales climbed 5.5% to JPY5.015 trillion from JPY4.752 trillion.

Diluted earnings per share for the year climbed 3.9% to JPY939.14 from JPY903.65.

Daikin Industries declared a final dividend of JPY175.00 per share, up 21% from JPY145.00 a year earlier.

The total dividend for the year was 3.0% higher at JPY340.00 per share from JPY330.00.

Daikin said it expects to increase next year's dividend to JPY360.00 per share, made up of an interim and final dividend of JPY180.00 each.

Looking ahead, Daikin expects attributable profit to rise 1.0% to JPY278.00 billion in the 2027 financial year.

It forecasts full-year net sales of JPY5.150 trillion, up 2.7% from financial 2026, with earnings per share of JPY949.32.

Daikin set out a new five-year strategic management plan, Fusion30, as it aims to "become a highly profitable and sustainable global company of choice by creating new value through environment and air".

It aims for an operating profit margin of 10% by financial 2029, and 12% by financial 2031, with a net sales compound annual growth rate of 6%.

Shares in Daikin Industries closed down 0.7% at JPY24,110.00 on Tuesday in Tokyo.

By Michael Hennessey, Alliance News reporter

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