Isuzu Motors (7202) Q2 2026 earnings summary

Executive summary

• First half FY2026 profit declined by ¥28.0 billion year-over-year, despite higher unit sales and improved price realization, due to adverse FX, unfavorable CV destination mix, U.S. tariffs, and rising costs.

• Vehicle sales rose 13.6% year-over-year to 280,364 units, driven by growth in both domestic and overseas markets, especially in LCVs and the Middle East/Africa regions.

• Revenue increased 5.4% year-over-year to ¥1,637.3 billion, with Japan up 11.9% and overseas up 1.4%.

• Operating profit declined 21.1% year-over-year to ¥104.6 billion due to negative FX, higher material costs, and U.S. tariffs, despite higher sales volume.

• Profit attributable to owners of parent fell 11.1% year-over-year to ¥69.8 billion.

Financial highlights

• First half FY2026 revenue: ¥1,637.3 billion (+5% YoY); operating profit: ¥104.6 billion (-21% YoY); profit before tax: ¥117.4 billion (-15% YoY); profit attributable to owners: ¥69.8 billion (-11% YoY).

• Global sales units for the first half: 282,000 (+9% YoY).

• Gross profit decreased to ¥320.6 billion from ¥341.1 billion year-over-year.

• Operating profit margin dropped to 6.4% from 8.5% year-over-year.

• Basic EPS was ¥98.76, down from ¥105.10 year-over-year.

Outlook and guidance

• FY2026 full-year revenue forecast: ¥3,300.0 billion (+2% YoY); operating profit: ¥210.0 billion (-8% YoY); profit attributable to owners: ¥130.0 billion (-7% YoY).

• CV sales outlook in Japan unchanged; overseas CV forecast revised down by 3,000 units due to Indonesia, but other regions ahead of plan.

• LCV sales in Thailand and exports revised down by 10,000 and 9,000 units, respectively, due to weak recovery and Middle East demand.

• Aftersales business revenue forecast raised to ¥600.0 billion, expected to achieve FY2027 target one year early.

• Annual dividend forecast maintained at ¥92 per share.