Yamaha Motor (7272) Q4 2025 earnings summary

Executive summary

• FY2025 revenue declined to ¥2,534.2 billion (98% YoY), with operating income at ¥126.4 billion (70% YoY), and net income dropping to ¥16.1 billion (15% YoY) due to deferred tax asset reversals.

• Cost structure reforms were initiated in response to U.S. tariffs and market changes, aiming to boost profitability in 2026.

• Strategic focus is on increasing sales in core businesses and improving profitability in strategic segments, targeting ¥2.7 trillion revenue and ¥180 billion operating income for 2026.

• ROE fell to 1.4% and ROIC to 0.8% in FY2025.

• Free cash flow improved to ¥52.5 billion in FY2025.

Financial highlights

• FY2025 revenue: ¥2,534.2 billion (down 1.6% YoY), operating income: ¥126.4 billion (down 30.4% YoY), net income: ¥16.1 billion (down 85.1% YoY), EPS: ¥16.59 (down from ¥110.12 YoY).

• FY2026 forecast: revenue ¥2,700.0 billion (+6.5% YoY), operating income ¥180.0 billion (+42.4% YoY), net profit ¥100.0 billion (+520.8% YoY), EPS ¥103.05.

• Operating income margin for 2025 was 5%, forecast to rise to 6.7% in 2026.

• Free cash flow was ¥52.5 billion in FY2025.

• Total assets: ¥2,902.6 billion; equity attributable to owners: ¥1,132.2 billion.

Outlook and guidance

• FY2026 guidance anticipates increases in revenue and profit, driven by price strategy, cost reforms, and sales growth in core businesses.

• Tariff impacts are expected to persist, with gross tariff costs forecast at ¥54.3 billion in 2026.

• Dividend for 2025 is planned at ¥35 per share, rising to ¥50 per share in 2026, with a total payout ratio target of 40%.

• Assumes exchange rates of ¥155/USD and ¥175/EUR for FY2026.