Subaru (7270) Q4 2026 earnings summary

Executive summary

• Operating profit for FYE 2026 was ¥40.12 billion, down 90.1% year-over-year, mainly due to U.S. tariffs, foreign exchange, and higher raw material and BEV/environmental regulatory costs as U.S. regulations changed.

• Revenue rose 2.1% year-over-year to ¥4,784.97 billion, driven by improved price/mix despite lower unit sales and yen appreciation against the USD.

• Profit attributable to owners was ¥90.84 billion, down 73.1% year-over-year.

• Proactive measures were taken across development, production, and sales to address external cost pressures, and the "SUBARU Management Policy 2025" was launched to strengthen business resilience.

• Comprehensive income dropped 28.8% to ¥206.05 billion year-over-year.

Financial highlights

• Revenue for FYE 2026 reached ¥4,785 billion, up ¥992 billion year-over-year, but operating profit dropped sharply by ¥3,652 billion to ¥40.1 billion.

• Gross profit margin declined from 20.9% to 15.0% year-over-year.

• EPS (basic) fell from ¥458.03 to ¥125.50 year-over-year.

• Free cash flow was ¥88.1 billion, with cash and cash equivalents at ¥1,453.4 billion as of March 2026.

• Dividend per share increased slightly to ¥115.50, with a payout ratio of 92.0%.

Outlook and guidance

• For FYE 2027, operating profit is forecast at ¥150 billion, with revenue expected to rise to ¥5,200 billion and unit sales to increase by 44,000 units to 940,000.

• Profit attributable to owners of parent is forecast at ¥130 billion (+43.1% YoY).

• Downside risks exceeding ¥130 billion are anticipated due to raw material costs, precious metals, and geopolitical tensions.

• Assumed exchange rate for FY2027: ¥155/USD.

• Focus will shift to expanding the ICE/HEV lineup, with BEV development postponed.