Isuzu Motors (7202) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue was ¥1,730,029m (+5.7% YoY), operating profit ¥128,120m (+22.4%) and owners’ profit ¥74,677m (+7.0%); vehicle sales fell 7.8% to 258,514 units.

• Price realization, cost reductions and yen depreciation supported profit despite lower sales and Middle East-related cost pressures.

Financial highlights

• Profit before tax rose 16.7% YoY to ¥136,998m; total profit was ¥96,243m.

• Operating profit increased ¥23.5bn YoY as price realization, cost reductions and FX gains outweighed lower sales and higher material, logistics and other costs; results included a ¥5.7bn one-time gain from a subsidiary share sale.

• Middle East-related operating-profit impact was -¥25.0bn in H1; the full-year impact in guidance increased from -¥40.0bn to -¥54.0bn.

• Total comprehensive income declined to ¥87,906m from ¥112,381m, reflecting other comprehensive income of -¥8,336m versus +¥24,327m.

Outlook and guidance

• FY2027 forecasts: revenue ¥3,700bn, operating profit ¥260bn, profit before tax ¥270bn and owners’ profit ¥160bn; revenue and operating profit forecasts were unchanged from May, while pretax profit rose ¥10bn.

• Full-year global vehicle sales forecast is 605K units, comprising 355K CV and 250K LCV; the total outlook rose 2K from the prior forecast.

• After-sales revenue outlook increased ¥10bn, mainly on overseas growth; industrial-engine shipments are broadly on plan, with a slight full-year outlook revision.

• H2 forecast exchange rates: ¥155/USD, ¥110/AUD, ¥180/EUR and ¥4.8/THB.

• FY2027 dividend is ¥94/share, including ¥47 interim and ¥47 year-end; payout ratio target is at least 40%.