Daido Metal Co., Ltd. (TSE: 7245), a leading maker of engine and industrial bearings for automobiles, ships, power generation and machinery, reported results for the fiscal year ended March 2026. Under Japanese GAAP, consolidated revenue rose 4.2% to ¥142.01 billion, operating profit climbed 18.1% to ¥8.37 billion, ordinary profit rose 8.5% to ¥7.40 billion and net profit attributable to owners surged 61.6% to ¥4.40 billion. EPS was ¥93.73 and net assets per share were ¥1,751.60. Tighter margin management and price optimization more than offset higher labour costs and tariff impacts.
Powertrain remains the largest business
Under newly renamed segments, the Powertrain business (formerly automotive engine bearings) grew revenue 4.3% to ¥75.68 billion and segment profit 5.6% to ¥9.81 billion, as robust U.S. demand and a weaker yen lifted overseas sales even as Japanese sales rose only slightly. Global new-vehicle sales rose 3.6% in 2025, helped by North American hybrid demand.
Marine, energy and life segments grow
The Marine & Energy business (formerly non-automotive bearings) grew revenue 10.6% to ¥19.83 billion and profit 10.1% to ¥4.09 billion, buoyed by a strong newbuild-ship market and rising demand for medium/high-speed engine bearings tied to data-center backup power and on-site generation. The Life business (formerly non-engine automotive bearings) grew revenue 9.4% to ¥23.26 billion and profit 30.3% to ¥4.06 billion. The Frontier business (formerly non-bearing auto parts) narrowed its loss to ¥755 million (from ¥1.36 billion) on revenue down 2.6% to ¥23.07 billion.
Balance sheet and cash flow
Total assets stood at ¥209.43 billion and net assets at ¥91.43 billion, lifting the equity ratio 2.2 points to 39.2%. Operating cash flow was ¥13.72 billion and cash and equivalents ended at ¥26.28 billion.
Dividend and outlook
Daido Metal raised its FY2026 annual dividend to ¥31.00 per share (¥12 interim plus ¥19 year-end) and plans ¥36.00 for FY2027 (¥18 plus ¥18). Under its "Bridge to Daido 2030" mid-term plan it targets a payout ratio of 35%-plus in FY2027 and 40%-plus by FY2030. For the year to March 2027 it guides revenue of ¥145.0 billion (+2.1%), operating profit of ¥9.5 billion (+13.5%), ordinary profit of ¥9.0 billion (+21.6%) and net profit of ¥5.0 billion (+13.7%).
| Metric | FY3/26 | FY3/25 | YoY |
|---|---|---|---|
| Revenue (¥bn) | 142.01 | 136.29 | +4.2% |
| Operating profit (¥bn) | 8.37 | 7.09 | +18.1% |
| Ordinary profit (¥bn) | 7.40 | 6.82 | +8.5% |
| Net profit attrib. (¥bn) | 4.40 | 2.72 | +61.6% |
| EPS (¥) | 93.73 | 57.70 | +62.4% |
| Equity ratio | 39.2% | 37.0% | +2.2pp |
| FY3/27 net guidance (¥bn) | 5.00 | 4.40 | +13.7% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.