Yamaha Motor (7272) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined to ¥625.9 billion, down 2.5% year-over-year, with operating income at ¥43.6 billion and profit attributable to owners at ¥30.7 billion, reflecting lower sales in Motorcycles, Water Vehicles, and LSM, as well as increased R&D and labor costs.

• Strategic M&A activity in Marine and SPV businesses, including acquisitions of Telwater and Brose's e-Kit, supports mid- to long-term growth initiatives.

• Comprehensive income turned negative at ¥(8.96) billion, mainly due to significant negative translation differences on foreign operations.

• Strategic direction remains unchanged despite external uncertainties, with clarified priorities for future growth.

Financial highlights

• Revenue for Q1 was ¥625.9 billion, 97% of the prior year; operating income was ¥43.6 billion, 56% of the prior year, with an operating income margin of 7% (down from 12.1% YoY); EPS was ¥31.47 (down from ¥56.61 YoY).

• Gross profit fell to ¥197.0 billion from ¥211.2 billion year-over-year; gross margin compressed.

• Free cash flow was negative ¥64.5 billion, with cash and cash equivalents at ¥360.8 billion at quarter-end.

• Total assets increased to ¥2,804.8 billion, while total equity decreased to ¥1,177.2 billion as of March 31, 2025.

Outlook and guidance

• Conditions are expected to gradually normalize in all regions from Q2 onwards, with FY2025 revenue forecast at ¥2,700 billion (+4.8% YoY), operating profit at ¥230 billion (+26.7%), and profit attributable to owners at ¥140 billion (+29.5%).

• Basic EPS for FY2025 projected at ¥144.18; no revision to previously announced dividend or earnings guidance.

• Many uncertainties remain regarding full-year earnings, especially due to tariffs; ongoing careful assessment.

• Production in Vietnam has normalized, and recovery is expected in subsequent quarters.