Hino Motors (7205) Q2 2026 earnings summary

Executive summary

• Net sales for the first half were ¥742.9 billion, down 12.4% year-over-year, mainly due to lower unit sales in both domestic and overseas markets and model change delays in Japan.

• Global unit sales for the second quarter were 53.5 thousand, down 13.9% year-over-year, with market slowdowns in Asia and the Middle East.

• Operating income rose 58% to ¥38.1 billion, and ordinary income increased 87.9% to ¥36.5 billion, reflecting significant cost reductions.

• Net income swung from a loss of ¥219.6 billion to a profit of ¥22.5 billion, driven by improved operating income and the absence of extraordinary losses related to certification issues.

• Comprehensive income for the period was ¥31.0 billion, compared to a loss of ¥207.1 billion in the previous year.

Financial highlights

• Operating income increased by ¥14.0 billion year-over-year, despite a ¥104.6 billion drop in net sales.

• Gross profit for the period was ¥130.3 billion, down from ¥143.5 billion year-over-year.

• Selling, general and administrative expenses decreased to ¥92.3 billion from ¥119.5 billion.

• Equity ratio improved to 15.6% from 12.1% at the previous fiscal year-end.

• Profit per share for the interim period was ¥39.20, compared to a loss per share of ¥382.56 in the prior year.

Outlook and guidance

• Full-year net sales forecast revised to ¥1,500.0 billion, down 11.6% from the previous year.

• Full-year global unit sales forecast revised downward to 108.5 thousand units, a 6.5 thousand unit decrease from the initial forecast.

• Full-year operating income forecast raised by ¥25.0 billion to ¥65.0 billion, and net income forecast doubled to ¥40.0 billion.

• Upward profit revisions are attributed to environmental changes and further expense reductions.

• Japan unit sales of trucks and buses forecast at 33,000 units, overseas at 75,500 units, and Toyota brand vehicles at 165,500 units.