Komori
Earnings presentation7245DAIDO METAL CO.,LTD.Automobiles & Transportation Equipment

Supplementary Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027

For the interim period, revenue increased 8.4% year on year, while operating income was largely unchanged due to higher material and labour costs and delays in reflecting selling-price increases. The full-year earnings forecast was maintained at the previous forecast level, reflecting expectations for selling-price increases to be reflected and profitability to improve in the second half.

Worth reading
54Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
8.4
Year-on-year change in revenue (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings summarySecond quarter (interim period) of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥73,258 millions+8.4%
Operating profit¥3,893 millions0.0%
Ordinary income¥3,476 millions+4.9%
Net income¥1,755 millions+4.4%
Operating profit margin5.3 %
Full-year earnings forecast
Net Sales
¥145,000 millions
Operating profit
¥9,500 millions
Ordinary income
¥9,000 millions
Profit attributable to owners of the parent
¥5,000 millions
Operating profit margin
6.6 %
Ordinary income margin
6.2 %
Net profit margin
3.4 %
ROE
6.5 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Labor Costs¥-7.8 100 million
  • Material costs¥-17.8 100 million
  • Labor cost pass-through¥7.4 100 million
  • Material cost pass-through¥10.8 100 million
  • Stronger profitability management¥9.1 100 million
  • Other¥-1.7 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • U.S. dollar exchange rate¥153 /US$
  • Euro exchange rate182 JPY/EUR
New initiatives
  • Construction of a new plant in Mexico (groundbreaking ceremony scheduled for October 2026; production scheduled to begin in 2028)
  • Expand global production capacity to approximately 1.5 times the fiscal 2025 level by fiscal 2030
  • Termination of the operations of 大同メタルヨーロッパLTD. and consolidation of North American sales functions into 大同メタルU.S.A. Inc. (scheduled for 31 December 2026)
  • Strengthening earnings capacity, growth areas, and non-financial capital
Key KPIsA metric the company considers important as a management benchmark.
  • ROE4.2 %
    Year-on-year change-0.3
    Change unitpt
  • Equity ratio39.3 %
    Year-on-year change2.1
    Change unitpt
  • Net interest-bearing debt¥38,170 millions
    Year on year against the same period last year+2.9%
  • U.S. dollar exchange rate¥162.39 /US$
    Year-ago period144.81
  • Euro exchange rate185.35 JPY/EUR
    Year-ago period169.66
Segment results
  • Powertrain Business
    Net Sales¥37,911 millions
    Year-on-year revenue growth6.3 %
    Operating profit (loss)¥4,349 millions
    Year-on-year change in operating income (loss)-10.7 %
  • Marine and Energy Business
    Net Sales¥10,988 millions
    Year-on-year revenue growth18.6 %
    Operating profit (loss)¥2,304 millions
    Year-on-year change in operating income (loss)29.8 %
  • Life Business
    Net Sales¥12,757 millions
    Year-on-year revenue growth14.6 %
    Operating profit (loss)¥2,271 millions
    Year-on-year change in operating income (loss)20.6 %
  • Frontier Business
    Net Sales¥11,201 millions
    Year-on-year revenue growth1.4 %
    Operating profit (loss)¥-807 millions
    Year-on-year change in operating income (loss)Profit decrease
  • Other
    Net Sales¥1,153 millions
    Year-on-year revenue growth4.3 %
    Operating profit (loss)¥243 millions
    Year-on-year change in operating income (loss)5.1 %
Medium-term management plan targets
The medium-term management plan, “Bridge to Daido 2030,” is mentioned, but the target figures are Not disclosed
Financial targets
ROE
Interim results4.2 %
Full-year forecast6.5 %
Equity ratio
Interim results39.3 %
Market Size / Share
The company is described as having a “high market share” in large vessels, but the figures are Not disclosed
Capital expenditures
¥115 100 million full-year forecast
Annual Dividend
¥36 per share
Interim Dividend18
Fiscal year-end dividend forecast18
Payout ratio
Full-year forecast33.4 %
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings summary
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales¥73,258 millions (YoY +8.4%)
Operating profit¥3,893 millions (YoY 0.0%)
Ordinary income¥3,476 millions (YoY +4.9%)
Net income¥1,755 millions (YoY +4.4%)
Operating profit margin5.3 %
Full-year earnings forecastNet Sales ¥145,000 millions / Operating profit ¥9,500 millions / Ordinary income ¥9,000 millions / Profit attributable to owners of the parent ¥5,000 millions / Operating profit margin 6.6 % / Ordinary income margin 6.2 % / Net profit margin 3.4 % / ROE 6.5 %
Segment resultsSegment Powertrain Business / Net Sales ¥37,911 millions / Year-on-year revenue growth 6.3 % / Operating profit (loss) ¥4,349 millions / Year-on-year change in operating income (loss) -10.7 %, Segment Marine and Energy Business / Net Sales ¥10,988 millions / Year-on-year revenue growth 18.6 % / Operating profit (loss) ¥2,304 millions / Year-on-year change in operating income (loss) 29.8 %, Segment Life Business / Net Sales ¥12,757 millions / Year-on-year revenue growth 14.6 % / Operating profit (loss) ¥2,271 millions / Year-on-year change in operating income (loss) 20.6 %, Segment Frontier Business / Net Sales ¥11,201 millions / Year-on-year revenue growth 1.4 % / Operating profit (loss) ¥-807 millions / Year-on-year change in operating income (loss) Profit decrease, Segment Other / Net Sales ¥1,153 millions / Year-on-year revenue growth 4.3 % / Operating profit (loss) ¥243 millions / Year-on-year change in operating income (loss) 5.1 %
Breakdown of Factors Affecting the ChangeFactors Labor Costs / Amount ¥-7.8 100 million, Factors Material costs / Amount ¥-17.8 100 million, Factors Labor cost pass-through / Amount ¥7.4 100 million, Factors Material cost pass-through / Amount ¥10.8 100 million, Factors Stronger profitability management / Amount ¥9.1 100 million, Factors Other / Amount ¥-1.7 100 million
Key KPIsIndicator name ROE / Value 4.2 % / Year-on-year change -0.3 % / Change unit pt, Indicator name Equity ratio / Value 39.3 % / Year-on-year change 2.1 % / Change unit pt, Indicator name Net interest-bearing debt / Value ¥38,170 millions / Year on year against the same period last year ¥2.9 millions, Indicator name U.S. dollar exchange rate / Value ¥162.39 /US$ / Year-ago period ¥144.81 /US$, Indicator name Euro exchange rate / Value 185.35 JPY/EUR / Year-ago period 169.66 JPY/EUR
Assumptions Underlying the Business OutlookItem U.S. dollar exchange rate / Value ¥153 /US$, Item Euro exchange rate / Value 182 JPY/EUR
Medium-term management plan targetsThe medium-term management plan, “Bridge to Daido 2030,” is mentioned, but the target figures are Not disclosed
Financial targetsROE Interim results 4.2 % / Full-year forecast 6.5 % / Equity ratio Interim results 39.3 %
Annual Dividend¥36 per share
Payout ratioFull-year forecast 33.4 %
Capital expenditures¥115 100 million (full-year forecast)
Market Size / ShareThe company is described as having a “high market share” in large vessels, but the figures are Not disclosed
New initiativesConstruction of a new plant in Mexico (groundbreaking ceremony scheduled for October 2026; production scheduled to begin in 2028), Expand global production capacity to approximately 1.5 times the fiscal 2025 level by fiscal 2030, Termination of the operations of 大同メタルヨーロッパLTD. and consolidation of North American sales functions into 大同メタルU.S.A. Inc. (scheduled for 31 December 2026), Strengthening earnings capacity, growth areas, and non-financial capital
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Demand for automotive engines, ships, and generators remained firm, resulting in higher revenue, while higher material and labour costs and partial delays in reflecting selling-price increases reduced operating income. In the second half, the company plans to reflect selling-price increases, improve profitability, control costs, reduce costs, and improve productivity.

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