Mazda Motor (7261) Q1 2026 earnings summary

Executive summary

• Q1 net sales declined 8.8% year-over-year to ¥1,099.8B, with a net loss of ¥42.1B, reversing a prior-year profit, mainly due to tariffs, cost pressures, and exchange rates.

• Global sales volume fell 2.8% to 301,000 units, with growth in Japan offset by declines in Europe and the U.S.

• Operating loss was ¥46.1B, compared to a ¥50.4B profit last year, driven by tariffs and unfavorable volume/mix.

• Strategy focuses on offsetting over 60% of the ¥230B tariff impact via sales mix and cost improvements.

• Accelerated profit structure reform and AI-driven operational speedup are prioritized.

Financial highlights

• Q1 operating income was -¥46.1B, a decline of ¥96.5B year-over-year.

• Net income for Q1 was -¥42.1B, down ¥91.9B year-over-year; EPS was -¥66.8.

• Ordinary loss was ¥34.3B, down from ordinary income of ¥80.3B year-over-year.

• Gross profit dropped to ¥168.2B from ¥257.1B year-over-year; gross margin contracted.

• Cash and cash equivalents at Q1-end were ¥989.3B, down ¥116.3B from FY25 year-end.

Outlook and guidance

• FY26 full-year targets: net sales ¥4,900.0B, operating income ¥50.0B, net income ¥20.0B, positive cash flow.

• Global sales volume forecast at 1.3M units, flat year-over-year; operating return on sales expected at 1.0%.

• Interim dividend set at ¥25 per share; year-end dividend to be determined.