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 for the six months ended September 30, 2025, driven by strong domestic and overseas demand, especially in the Middle East, Africa, and Thailand, despite inventory adjustments in North America.

• 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 foreign exchange effects, higher material costs, and U.S. tariffs, despite higher sales volumes and price realization.

• 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.

• Basic earnings per share dropped to ¥98.76 from ¥105.10 year-over-year.

• Total assets increased to ¥3,397.2 billion, and total equity rose to ¥1,566.7 billion as of September 30, 2025.

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).

• Basic earnings per share forecast is ¥185.55, factoring in share repurchases.

• 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.