Daikin Expands U.S. and Latin America Air-Conditioning Sales Despite Weak Housing Demand

Premium products and stronger dealer networks drive growth, while inflation and interest rates keep the housing market under pressure.

In North and South America, Daikin’s air-conditioning business faced a difficult environment during the latest quarter. The housing sector continued to struggle under persistent inflation and high mortgage interest rates, which kept industry-wide demand at low levels. Yet Daikin successfully expanded sales in ductless systems and applied products, achieving higher revenue in local currency terms compared with last year, even though the yen-based figure was pushed down by currency effects.

Daikin North America (DNA) achieved a 113% increase in revenue year-on-year in local currency. The breakdown of growth shows sales volumes were down by 8 percentage points, but this was offset by +7 points from price increases, +6 points from better product mix, and +1 point from M&A. In addition, Daikin integrated its Latin American air-conditioning operations under DNA this fiscal year, contributing +7 points to revenue growth.

In the housing segment, demand for unitary air conditioners fluctuated due to changes in refrigerant regulations (GWP standards), and the company faced a sharp rebound after pre-buy demand. Nevertheless, Daikin worked on developing new dealers and a “win-back” strategy to regain former customers. As of the end of June, about 45% of the targeted win-back had been achieved, and the company aims to raise this number further through more direct dealer visits.

Ductless products showed strong momentum. RA/SKY units grew through new dealer expansion, while VRV systems benefited from strong installation support and close after-sales service.

Applied products also performed well, despite weak overall demand and higher material costs. Daikin expanded production capacity through its new factory in Mexico and existing U.S. facilities, while also boosting solution-oriented sales with the help of design and engineering firms. This allowed applied product sales to surpass last year’s level.

Performance compared to the previous year (local currency basis, excluding material price FX effects):

• Housing (unitary): 87%
• Ductless RA/SKY: 108%
• Ductless VRV: 113%
• Applied: 108%

Looking ahead, Daikin’s ability to offset weak housing demand with premium products and a stronger dealer network positions it to capture more market share in the Americas. The integration of Latin American operations under DNA is expected to further strengthen its regional presence.

Explanation of Key Terms

• Ductless Systems: Air conditioners that don’t require ductwork, such as split-type units, popular for flexibility and energy efficiency.
• Applied Products: Large-scale commercial air-conditioning systems designed for buildings, factories, and other complex facilities.
• Win-back Strategy: A sales approach focused on regaining previous customers through targeted dealer support and outreach.

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