Yamaha Motor (7272) Q2 2025 earnings summary

Executive summary

• First half 2025 revenue was ¥1,277.8 billion (down 5.2% YoY), operating income ¥84.1 billion (down 45.4% YoY), and net income attributable to owners was ¥53.1 billion (down 52.9% YoY), with market share gains in core businesses despite lower sales volume and higher R&D and SG&A expenses.

• Strategic investments and acquisitions, including Robotics Plus Limited and Brose eBike subsidiaries, are underway for mid- to long-term growth.

• Full-year 2025 revenue forecast is ¥2,570.0 billion (flat YoY), operating income ¥120.0 billion (down 33.9% YoY), and net income ¥45.0 billion (down 58.4% YoY), reflecting anticipated risks such as U.S. tariffs.

• Dividend remains unchanged at ¥50 per share, with a ¥10 billion treasury stock repurchase completed to maintain stable shareholder returns.

• Major business combinations and segment reporting changes were implemented, including the establishment of Outdoor Land Vehicle as a new segment.

Financial highlights

• H1 2025 revenue was ¥1,277.8 billion (95% YoY), operating income ¥84.1 billion (55% YoY), and net income ¥53.1 billion (47% YoY); EPS was ¥54.61 (48% YoY).

• Full-year forecast: revenue ¥2,570.0 billion (100% YoY), operating income ¥120.0 billion (66% YoY), net income ¥45.0 billion (42% YoY), EPS ¥46.34.

• Operating margin for H1 2025 was 6.6% (down 4.8 pts YoY); full-year forecast is 4.7%.

• Free cash flow for H1 2025 was -¥65.1 billion; cash and equivalents at period end ¥361.1 billion.

• Total assets as of June 30, 2025 were ¥2,758.4 billion, with total equity at ¥1,201.6 billion.

Outlook and guidance

• Full-year 2025 revenue is expected to remain flat, but operating and net income are projected to decline due to tariffs and higher R&D expenses.

• Operating income ratio expected at 4.7%, down 2.3 points YoY.

• Company to focus on cost management, profit structure improvement, and building a robust management structure.

• Annual dividend will be maintained at ¥50 per share, with a total payout ratio target of over 40%.

• Basic earnings per share for the year is expected to be ¥46.34.