Isuzu Motors (7202) Q2 2025 earnings summary

Executive summary

• First-half FY2025 net sales declined 6.2% year-over-year to ¥1,536.3B, with operating income down 9.8% to ¥129.2B and net income down 21.5% to ¥69.2B.

• Profits declined as overseas unit sales and rising material costs outweighed gains from price realization and yen depreciation.

• Total vehicle sales dropped 25% year-over-year, mainly due to significant declines in overseas markets, especially Thailand and North America.

• Domestic sales increased 13.1% year-over-year, supported by new model launches, while overseas sales fell 12.9%.

• Full-year outlook revised downward due to continued weak demand and cost pressures, but dividend and share buyback plans remain unchanged.

Financial highlights

• First-half FY2025 sales: ¥1,536.3B, down 6% year-over-year; operating income: ¥129.2B, down 10%; net income: ¥69.2B, down 21%.

• Gross profit for the first half was ¥327.9B, down from ¥334.2B year-over-year.

• Comprehensive income fell to ¥84.0B from ¥178.6B year-over-year.

• Full-year FY2025 sales forecast: ¥3,250.0B (down 4% vs. prior year); operating income: ¥230.0B (down 22%); net income: ¥135.0B (down 23%).

• Net income per share decreased to ¥92.53 from ¥113.66 year-over-year.

Outlook and guidance

• FY2025 operating profit forecast cut by ¥30B to ¥230B, reflecting lower unit sales and higher costs.

• Full-year forecast reflects weaker overseas demand, higher material costs, and exchange rate assumptions (e.g., 145 JPY/USD for H2 FY2025).

• CV unit sales expected to decrease in Japan and slightly overseas; LCV sales in Thailand and exports revised down further.

• Dividend forecast maintained at ¥92/share; share buyback program continues as planned.