Suzuki Motor (7269) Q2 2025 earnings summary

Executive summary

• Revenue for H1 FY2024 rose 11.7% YoY to ¥2,855.0B, driven by FX effects, price revisions, and improved model mix, especially in the domestic automobile segment, despite higher R&D, labor, and marketing costs.

• Operating profit increased 40.7% YoY to ¥334.9B, and profit attributable to owners of parent grew 43.9% to ¥217.5B.

• Profitability initiatives and enhanced individual capabilities contributed to improved earnings.

• Interim and annual dividends increased, reflecting strong results and a 4-for-1 stock split.

• Comprehensive income dropped to ¥105.5B from ¥432.4B YoY, mainly due to negative exchange differences on translation of foreign operations.

Financial highlights

• Q2 FY2024 revenue: ¥2,855.0B (+11.7% YoY); operating profit: ¥334.9B (+40.7% YoY); net profit: ¥217.5B (+43.9% YoY).

• Gross profit for the period was ¥797.3B, up from ¥659.8B YoY.

• Operating margin improved to 11.7% from 9.3% YoY.

• Earnings per share (basic) increased to ¥112.72 from ¥77.93 YoY, reflecting a four-for-one stock split.

• Cash and cash equivalents at period end were ¥930.4B, up ¥90.4B from the previous fiscal year end.

Outlook and guidance

• Full-year FY2024 revenue forecast is ¥5.6T (+4.5% YoY); operating profit forecast raised to ¥550B (+11.4% YoY); profit attributable to owners of parent to ¥350.0B.

• Earnings per share forecast for the year is ¥181.42, up 12.9% YoY.

• Annual dividend forecast increased to ¥40/share (post-split), up ¥9.5 YoY.

• Focus on strengthening earning power to offset higher R&D and fixed costs.