DAIHEN (6622): FY2025 Results Summary — Record Sales and Profits on Power Infrastructure and Semiconductor Demand

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

DAIHEN Corporation (6622) reported consolidated results for FY2025 (fiscal year ended March 31, 2026) in its Financial Results Briefing dated June 5, 2026. Net sales rose to 237.7 billion yen (+5.0% year on year) and operating profit to 18.7 billion yen (+16.1%), with the company noting that net sales, operating profit, and ordinary profit have all reached record highs. Sales and profit increased due to the growing capital investment of electrical infrastructure-related and semiconductor-related companies.

Consolidated Results (Full-Year Actual)

Net sales increased 11.4 billion yen year on year to 237.7 billion yen, exceeding the FY2025 forecast of 235.0 billion yen (+1.2% versus forecast). Operating profit was 18.7 billion yen (operating margin 7.9%, up from 7.1% in FY2024), ordinary profit was 20.1 billion yen (+17.0%), and profit attributable to owners of parent was 14.1 billion yen (+18.0%). According to the year-on-year operating profit bridge, expansion of cost reduction effects contributed +2.6 billion yen and sales increase, etc. +0.9 billion yen, while advanced expenses (development funds -0.5, depreciation -0.4) weighed -0.9 billion yen. Capital investment expanded to 13.4 billion yen (+38.1%), and investment in development rose to 7.5 billion yen (+7.1%).

Item (Billion yen)	FY2024 results	FY2025 results	YoY (2)-(1)	YoY change
Net sales	226.3	237.7	+11.4	+5.0%
Operating profit	16.1 (7.1%)	18.7 (7.9%)	2.6	+16.1%
Ordinary profit	17.1 (7.6%)	20.1 (8.5%)	2.9	+17.0%
Profit attributable to owners of parent	11.9 (5.3%)	14.1 (5.9%)	+2.2	+18.0%
Investment in development	7.0	7.5	+0.5	+7.1%
Capital investment	9.7	13.4	+3.7	+38.1%
Depreciation	6.5	6.9	+0.4	+6.2%

Segment Results

In the Energy Management segment, net sales rose 7.4 billion yen to 128.2 billion yen and operating profit rose 2.7 billion yen to 14.1 billion yen. Sales and profit increased, driven by growing demand for storage battery systems owing to the expansion of the power supply-demand adjustment market along with the extensive adoption of renewable energy, in addition to strong investment in the replacement of power receiving and distribution systems for plants in Japan. Orders received in the segment increased 15.5 billion yen to 146.8 billion yen, reflecting renewal investments, renewable energy-related investments, growing demand for data centers, and a significant increase in orders for energy storage facilities.

In the Factory Automation segment, net sales edged up 0.2 billion yen to 32.9 billion yen, reflecting the results of development of new customers in the U.S. and China, while operating profit decreased 0.3 billion yen to 2.0 billion yen, partly due to a decrease in the number of profitable projects. In the Material Processing segment, net sales rose 3.8 billion yen to 76.4 billion yen and operating profit rose 0.5 billion yen to 7.4 billion yen; sales and profit for RF generators for plasma applications increased, supported by a high level of investment in advanced semiconductors for generative AI.

Segment	Metric (Billion yen)	FY2024 results	FY2025 results	Change
Energy Management	Net sales	120.8	128.2	+7.4
Energy Management	Operating profit	11.4	14.1	+2.7
Factory Automation	Net sales	32.7	32.9	+0.2
Factory Automation	Operating profit	2.3	2.0	-0.3
Material Processing	Net sales	72.6	76.4	+3.8
Material Processing	Operating profit	6.9	7.4	+0.5

FY2026 Forecast

For FY2026, DAIHEN forecasts net sales of 280.0 billion yen (+17.8%), operating profit of 25.0 billion yen (+33.1%, operating margin 8.9%), ordinary profit of 25.5 billion yen (+26.9%), and profit attributable to owners of parent of 16.5 billion yen (+16.9%). The company states that net sales and profits in all categories are expected to reach record highs, and the FY2026 Medium-Term Plan Targets (net sales of 250.0 billion yen and operating profit of 25.0 billion yen at a 10.0% margin) are expected to be achieved. By segment, net sales are forecast at 134.0 billion yen (+5.8) with operating profit of 15.0 billion yen (+0.9) for Energy Management, 41.0 billion yen (+8.1) with 3.5 billion yen (+1.5) for Factory Automation, and 105.0 billion yen (+28.6) with 12.0 billion yen (+4.6) for Material Processing. The operating profit bridge for FY2026 factors in sales increase +6.8, cost reduction +4.0, and improved profitability of subsidiaries in Europe +1.1, against advanced expenses -3.6 and increased raw materials prices -2.0.

Item (Billion yen)	FY2025 results	FY2026 forecast	YoY (2)-(1)	Changes (2)/(1)
Net sales	237.7	280.0	+42.3	+17.8%
Operating profit	18.7 (7.9%)	25.0 (8.9%)	+6.3	+33.1%
Ordinary profit	20.1 (8.5%)	25.5 (9.1%)	+5.4	+26.9%
Profit attributable to owners of parent	14.1 (5.9%)	16.5 (5.9%)	+2.4	+16.9%
Investment in development	7.5	8.7	+1.2	+16.0%
Capital investment	13.4	14.5	+1.1	+8.2%
Depreciation	6.9	9.3	+2.4	+34.8%

Shareholder Returns

The annual dividend per share for FY2025 is 180 yen (interim 84 yen, year-end 96 yen), up from 165 yen in FY2024. The year-end dividend for FY2025 is scheduled to be approved at the General Meeting of Shareholders in June 2026. For FY2026, the company forecasts a dividend of 210 yen per share (interim 105 yen, year-end 105 yen). DAIHEN targets a minimum dividend payout ratio of 30% under its Targeted Returns policy. The total return ratio was 66% in FY2024 and 56% in FY2025, and the FY2024/FY2025 cash allocation includes the acquisition of treasury shares of 7.5 billion yen (including 1.0 billion yen of employee stock benefit trust) and the sale of strategic shareholdings of 5.6 billion yen.

Dividend per share (Yen)	FY2024	FY2025	FY2026 forecast
Interim	82.5	84	105
Year-end	82.5	96	105
Total	165	180	210

Medium-Term Plan / Topics

Under the Medium-Term Plan for FY2026, DAIHEN targets net sales of 250.0 billion yen or more, a ratio of operating profit to net sales of 10% or more, ROE of 12% or more, a development funds ratio of 6% or more, and a payout ratio of 30% or more, with an FY2030 plan of net sales of 300.0 billion yen or more and an operating margin of 12% or more. ROE was 9.7% in FY2025 (8.8% in FY2024) and is forecast at 10.3% for FY2026. Net sales targets for development themes that contribute to solving social challenges total 40.4 billion yen in FY2025, 75.0 billion yen in FY2026, and 125.0 billion yen in FY2030. Topics include reinforcement to double the production capacity of large transformers at the Mie Plant, expansion of RF generator system production capacity to 2.0 times previous levels, entry into the next-generation metal additive manufacturing (WAAM) business — described as a first in Japan (May 2026) — and Japan’s first and only fire service certification for a storage battery package for disaster prevention (January 2026). Non-financial targets include reducing CO2 emissions (Scope 1 + 2) by 46% from FY2013 by FY2027 and (Scope 3) by 25% from FY2020 by FY2030.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.