Suzuki Motor (7269) Q2 2026 earnings summary

Executive summary

• Revenue for the second quarter of FY2025 was 2,864.2 billion yen, nearly flat year-over-year, while operating profit declined 17.5% to 276.5 billion yen due to FX impacts, higher raw material costs, and lower automobile sales in India and Europe.

• Profit attributable to owners of parent fell 11.3% YoY to 192.8 billion yen, while comprehensive income rose to 218.8 billion yen from 105.5 billion yen YoY, driven by positive fair value changes in financial assets.

• Domestic automobile, motorcycle, and marine businesses remained stable, with notable growth in motorcycle sales, especially in India and Latin America.

• The company is maintaining its full-year forecast despite favorable FX rates and market conditions in India, citing ongoing semiconductor supply constraints and a severe, uncertain business environment.

• Interim dividend set at 22 yen per share, with annual dividend forecast raised to 45 yen per share from 41 yen in the previous year.

Financial highlights

• Operating profit fell for the first time in five periods, down 58.5 billion yen year-over-year.

• Profit before tax decreased 11.8% to 332.2 billion yen, and net profit attributable to owners of parent dropped 11.3% to 192.8 billion yen.

• Global automobile sales volume declined 2.8% to 1,523 thousand units, mainly due to decreases in India and Europe.

• Motorcycle sales volume increased 8.6% to 1,110 thousand units, driven by strong demand in India and Latin America.

• Gross profit decreased to 737.8 billion yen from 797.3 billion yen YoY.

Outlook and guidance

• Full-year revenue forecast remains at 6,100.0 billion yen, up 4.7% year-over-year, but operating profit is expected to decline 22.2% to 500.0 billion yen.

• Profit before tax and net profit are also forecast to decrease, reflecting continued cost pressures and FX headwinds.

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

• The company will continue prioritizing growth investments and strengthening its earnings base to achieve its mid-term management plan.