Air Conditioning and Refrigeration Equipment Q1 FY2027: Sales rise, margins diverge
Companies compared · 3
Takeaway
Sales rose at all three, but profit growth and margins diverged.
Air conditioning and refrigeration equipment makers all grew sales in Q1 FY2027, led by Daikin at 17.5%. Hoshizaki topped margins at 12%, while Miura's 40.4% net profit gain owed much to equity-method income; Hoshizaki reported a half-year.
Industry trends
The reporting periods differ: Daikin and Miura reported first-quarter results for the fiscal year ending March 2027, while Hoshizaki reported the first half of its fiscal year ending December 2026. Their revenue and profit figures are therefore not directly comparable.
- All three companies increased sales. Revenue rose 17.5% year on year at Daikin, 14.7% at Hoshizaki and 11.1% at Miura.
- Daikin benefited from passing on higher prices and growth in higher-value products. A recovery in its chemicals business serving the semiconductor industry also supported sales.
- Miura saw steady domestic boiler and maintenance demand. Sales in the Americas and paid maintenance contracts also increased.
- Hoshizaki set a new record for first-half revenue, helped by inbound tourism demand and overseas expansion.
- Operating profit growth varied: 7.6% at Daikin, 7.3% at Hoshizaki and 5.1% at Miura.
Revenue ranking
Daikin leads by revenue scale. Hoshizaki reported a half-year, while the other two reported a quarter, so the period difference should be considered when comparing figures.
Operating profit ranking
Daikin ranked first in operating profit, though the longer reporting period also affects the comparison. Year-on-year figures show that all three increased operating profit, but at different rates.
Operating margin ranking
Hoshizaki had the highest operating margin, showing that larger revenue does not necessarily mean higher profitability. Differences in costs and business mix help explain the gap with Daikin and Miura.
Winner and loser
Hoshizaki is the winner on profitability. Its operating margin was 12%, ahead of Daikin's 9.2% and Miura's 6.3%. Operating profit rose 7.3% year on year, while adjusted operating profit, excluding acquisition-related costs, increased 16.1%.
Sales growth and profit growth are separate contests. Daikin led the group with a 17.5% increase in revenue, but net profit fell 1.7%, making it the only company of the three to report a decline. U.S. tariffs and higher raw-material costs weighed on earnings.
Miura's net profit increased 40.4%, helped by higher equity-method income. Operating profit growth was just 5.1%, however, and its margin was the lowest of the three. Its profit growth came from a different mix of factors than Hoshizaki's.
Winner
Hoshizaki
Laggard
Daikin
Strategy and developments to watch
Daikin pursued sales growth alongside shareholder returns. It expanded sales of higher-value products and passed on higher prices, while leaving its full-year forecast unchanged. The company also carried out about ¥350 billion in share buybacks, signaling a focus on improving capital efficiency.
Miura grew maintenance contracts as well as boiler sales. Higher labor costs and U.S. tariff burdens increased, but growth in equity-method income lifted net profit. Its full-year forecast was unchanged.
Hoshizaki is expanding overseas through M&A. Amortization of goodwill and other items weighed on reported operating profit, while adjusted operating profit rose 16.1% year on year. Investors should watch both the earnings power of acquired businesses and the associated amortization burden.
Common industry risks
- Uncertainty in overseas businesses. The impact of U.S. tariffs became apparent at Daikin and Miura. Miura also cited the Middle East situation as a source of uncertainty.
- Rising costs squeezing profits. Higher raw-material costs affected Daikin, while Miura faced increased labor expenses and tariff burdens. The key question is whether sales growth can translate into stronger earnings.
- Shifts in overseas demand. Overseas sales and business expansion support all three companies. Demand changes by region could affect their growth rates.
- The quality of earnings matters. Equity-method income influenced Miura's results, while acquisition-related amortization affected Hoshizaki. Investors should assess operating profit and net profit separately.
Rankings and structural trends
Daikin ranked first by revenue and operating profit. Hoshizaki, however, led on operating margin, showing that scale alone does not determine profitability. Miura posted the strongest net profit growth, but its 6.3% operating margin was the lowest of the three.
Hoshizaki's reporting period was longer than those of its peers. Year-on-year growth and margins are more useful than comparing the companies' absolute figures.
What jobseekers and career changers should know
The results show that maintenance and overseas businesses, as well as product sales, can support growth. Miura is known for boilers and maintenance, Daikin for air conditioning and chemicals, and Hoshizaki for commercial kitchen equipment and overseas expansion.
Opportunities extend beyond sales roles to service engineering, product development, overseas operations and procurement. As companies respond to tariffs and higher raw-material costs, understanding customer needs and maintaining cost awareness are likely to be important.
Revenue growth
All three companies increased revenue year on year, with Daikin posting the fastest growth. Price increases, maintenance and overseas sales supported growth in different ways at each company.
Net profit growth
Miura had the strongest net profit growth, while Daikin's profit declined. Equity-method income and higher costs were among the factors behind the divergence, which operating profit alone does not show.