Hino Motors (7205) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, rose 12.2% year-over-year to 1,280.2 billion yen, driven by domestic recovery and yen depreciation.

• Operating income surged to 45.1 billion yen from 4.7 billion yen year-over-year, reflecting resumed shipments and improved sales to Toyota.

• Net loss widened significantly to -265.4 billion yen, mainly due to large legal settlements and certification issues in North America and Australia.

• Global unit sales declined 4.6% year-over-year to 95.3 thousand units, with strong growth in Japan offset by sharp declines in Asia, especially Thailand.

• Comprehensive income for 3Q FY2025 was -260.1 billion yen, compared to 10.7 billion yen in the prior year.

Financial highlights

• Net sales increased by 138.7 billion yen year-over-year; operating income improved by 40.4 billion yen.

• Net loss attributable to owners of parent expanded by 255.1 billion yen year-over-year, primarily from extraordinary legal and certification-related expenses.

• Equity ratio decreased to 9.1% from 26.8% at the end of FY2024.

• Net assets fell sharply to 197.7 billion yen from 463.4 billion yen at the end of FY2024.

• Exchange rate movements, especially yen depreciation, contributed positively to operating income.

Outlook and guidance

• Full-year operating income forecast raised by 15.0 billion yen to 45.0 billion yen, reflecting yen weakness and improved domestic pricing.

• Net loss forecast revised downward by 45.0 billion yen to -265.0 billion yen, incorporating higher legal settlement costs.

• Global unit sales forecast for FY2025 reduced by 3.0 thousand units to 127.0 thousand, mainly due to weaker ASEAN demand.

• No dividend is planned for FY2025.

• Full-year FY2025 net sales forecast at 1,650.0 billion yen, up 8.8% year-over-year.