DAIKIN (DKILY) AI Stock Analysis

Company Guidance

Management guided that Q1 momentum and countermeasures should allow operating profit to further exceed the annual plan of JPY435.0 billion, noting Q1 operating profit margin was 10% (sales slightly below plan but profit slightly above), and that the direct Q1 tariff hit of ~JPY7.5 billion was fully absorbed by selling price increases (~JPY5.0 billion) and cost reductions (~JPY2.5 billion); the previously announced fiscal‑year tariff impact of JPY47.0 billion is now expected to be less than JPY47.0 billion and will be mitigated by further price increases, cost cuts and supply adjustments. Key metrics cited include air‑conditioning real YoY sales by region: Europe 102%, China 93%, Americas 104%, Asia 90%; chemicals real YoY sales: Americas 115%, China 95%, Europe 99%; DNA sales at 113% (local currency) with an 11% operating margin (up 2ppt YoY), DAA margin 9%, China residential multi‑split sales 99% YoY, European heat‑pump heating sales 110% YoY, Win‑Back progress ~45% at end‑June, industry shipments in the US at ~84–85% in Q1, inventories slightly up YoY but slightly below internal plan, and no changes to full‑year capex, depreciation or R&D plans.