Isuzu Motors (7202) Q4 2025 earnings summary

Executive summary

• FY2025 profits and net sales declined due to lower overseas LCV sales and higher material costs, despite record Japanese market share and yen depreciation gains.

• Japanese CV sales increased year-over-year, but overseas and export sales, especially LCVs in Thailand, dropped sharply amid tough market conditions and inventory reductions.

• Market share in Japan for both heavy/medium and light-duty trucks reached record highs, while Thailand LCV market share declined.

Financial highlights

• FY2025 sales: ¥3,208.1B (down 5.3% YoY); operating income: ¥229.1B (down 21.8% YoY); net income: ¥134.4B (down 23.8% YoY).

• Operating income margin fell to 7.1% from 8.7% YoY; comprehensive income dropped 44.4% to ¥179.7B.

• Overseas CV unit sales fell 7% YoY; LCV sales in Thailand dropped 64% YoY; total global sales units declined 19% YoY.

• Aftersales business revenue increased, driven by demand in Japan.

• Net cash from operating activities was ¥217.7B, down 27.1% YoY; free cash flow was ¥39.8B.

Outlook and guidance

• FY2026 sales revenue forecast: ¥3,330.0B (+3% YoY); operating profit: ¥210.0B (-8% YoY); net profit: ¥130.0B (-3% YoY), based on IFRS.

• Dividend for FY2026 is planned at ¥92/share, unchanged from FY2025.

• CV unit sales expected to rise in Japan and overseas, with LCV recovery in Thailand, but headwinds from material costs, FX, and US tariffs persist.

• Dividend payout ratio forecast at 50.4% for FY2026.