Yamaha Motor (7272) Q4 2024 earnings summary

Executive summary

• 2024 revenue increased to JPY 2,576.2 billion (107% YoY), but operating and net income declined due to one-off costs, higher SG&A, and impairments, with strong motorcycle sales in Brazil, India, and Indonesia.

• Profits were impacted by business structure reviews, asset impairments, recall-related provisions, and deteriorating market conditions in some segments.

• Inventory adjustments and production controls were implemented in regions with excess stock.

• A new Medium-Term Management Plan (MTP) for 2025–2027 was introduced, focusing on core business competitiveness, technological innovation, and rapid market response.

• Leadership transition announced: Shitara Motofumi to become President and CEO as of March 25.

Financial highlights

• 2024 revenue: JPY 2,576.2 billion (+6.7% YoY); operating income: JPY 181.5 billion (74% YoY); net income: JPY 108.1 billion (68% YoY); EPS: JPY 110.12 (70% YoY).

• Operating income ratio declined to 7.0% from 10.1% YoY.

• One-off costs in 2024 totaled about JPY 50 billion, including inventory write-downs, asset impairments, and recall provisions.

• Free cash flow improved to JPY 88.5 billion from -30.1 billion YoY.

• 2025 forecast: revenue JPY 2.7 trillion, operating income JPY 230 billion, net income JPY 140 billion, EPS JPY 143.21.

Outlook and guidance

• 2025 expects higher revenue and profits, driven by premium motorcycle strategies, gradual marine recovery, and improved profitability in loss-making businesses.

• Medium-Term Management Plan targets over 7% annual revenue growth, exceeding JPY 3.1 trillion by 2027, with ROS over 9%, ROE 14%, ROIC 8%, and ROA 9%.

• Shareholder returns: annual dividend of JPY 50 per share and JPY 10 billion in share buybacks planned for 2025, with a total payout ratio above 40%.

• Business environment expected to remain uncertain due to global economic policy shifts, price hikes, and FX trends; gradual demand recovery anticipated.