Subaru (7270) Q4 2025 earnings summary

Executive summary

• Revenue decreased 0.4% year-over-year to 4,685.8 billion yen, mainly due to higher sales incentives and lower unit sales, despite positive pricing and FX effects.

• Operating profit fell 13.4% to 405.3 billion yen, and profit attributable to owners of parent declined 12.2% to 338.1 billion yen, impacted by increased R&D and provisions in Aerospace.

• FYE 2025 production was 946,000 units, down 2.4% year-over-year; consolidated unit sales were 936,000 units, down 4.1% year-over-year, reflecting inventory optimization and temporary production constraints.

• Global economic uncertainty, inflation, and geopolitical risks persisted, with modest recovery in Japan and steady but uncertain U.S. conditions.

Financial highlights

• Revenue: 4,685.8 billion yen (down 0.4% year-over-year).

• Operating profit: 405.3 billion yen (down 13.4% year-over-year).

• Net cash provided by operating activities: 492.1 billion yen; free cash flow: 88.1 billion yen.

• EPS (basic): 458.03 yen, down from 509.20 yen year-over-year.

• Annual dividend maintained at 115 yen per share.

Outlook and guidance

• FYE 2026 production and unit sales forecast at 900,000 units, reflecting temporary constraints from Yajima Plant construction for BEV production.

• Revenue and profit forecasts for FYE 2026 are yet to be determined due to uncertainties, including U.S. tariff policy.

• Capex and R&D for FYE 2026 under review; depreciation expected at 100 billion yen, R&D at 140 billion yen.

• Dividend forecast for FY2026 is maintained at 115 yen per share.