Suzuki Motor (7269) Q1 2026 earnings summary

Executive summary

• Revenue and operating profit declined year-over-year for the first time in five years, mainly due to lower unit sales in India and Europe, adverse foreign exchange rates, and higher raw material costs.

• Domestic businesses in automobiles, motorcycles, and marine segments remained strong, with Japan achieving a 3.6% increase in auto sales.

• In India, export growth offset weaker domestic sales, and new SUV launches are planned to stimulate demand.

• Comprehensive income dropped sharply to ¥74.7 billion from ¥287.5 billion year-over-year, mainly due to negative exchange differences on translation of foreign operations.

Financial highlights

• Q1 FY2025 revenue: ¥1,397.8B, down 4.1% year-over-year; operating profit: ¥142.1B, down 9.8%.

• Net profit attributable to owners: ¥102.0B, down 10.7% year-over-year.

• Global automobile sales volume fell 3.8% to 754,000 units; motorcycle sales rose 4.9% to 548,000 units.

• Gross profit for the quarter was ¥362.7B, down from ¥399.1B year-over-year.

• Free cash flow for Q1: ¥36.6B; cash balance at quarter-end: ¥849.3B.

Outlook and guidance

• Full-year forecast maintained: revenue ¥6,100B (+4.7%), operating profit ¥500B (-22.2%), net profit ¥320B (-23.1%).

• Expect market improvement in India in H2 FY2025 due to policy rate and tax reductions; new SUV and e VITARA launches planned.

• Continued focus on R&D, capital investment, and human capital to strengthen earnings base.

• No changes to previously announced forecasts; business environment remains severe and uncertain.