Subaru (7270) Q1 2026 earnings summary

Executive summary

• 1Q FYE 2026 production was 247,000 units (up 3.3% y/y) and consolidated unit sales 244,000 units (up 15.1% y/y), led by Forester and Crosstrek.

• Revenue rose 11.2% y/y to ¥1,214.1 billion, driven by higher unit sales despite negative FX impacts.

• Operating profit for 1Q was ¥76.4 billion (down 16.2% y/y), mainly due to US tariffs, increased R&D, and higher raw material costs.

• Net profit attributable to owners dropped 34.7% to ¥54.8 billion.

• Commitment to maximizing profits this fiscal year, with a continued focus on the U.S. market.

Financial highlights

• 1Q revenue rose to ¥1,214.1 billion (up 11.2% y/y), with overseas revenue up 12.5% y/y.

• Operating profit fell to ¥76.4 billion (down 16.2% y/y), and profit attributable to owners dropped to ¥54.8 billion (down 34.8% y/y).

• Gross profit was ¥215.8 billion, nearly flat y/y despite higher revenue.

• Basic EPS decreased to ¥75.03 from ¥112.14 y/y.

• Cost reduction efforts and improved sales mix partially offset negative impacts from tariffs and currency.

Outlook and guidance

• Full-year FYE 2026 forecast: operating profit of ¥200 billion (down 50.7% y/y), revenue of ¥4,580 billion (down 2.3% y/y).

• Full-year consolidated unit sales expected at 920,000 units (up 2.2% from previous plan).

• Full-year impact of additional U.S. tariffs estimated at ¥210 billion; profitability to be maximized through productivity and cost improvements.

• Assumes FX rate of ¥145/USD for FY2026.

• Dividend forecast for FY2026 is ¥115 per share.