Mazda Motor (7261) investor relations material

Executive summary

• FY March 2026 saw global sales of 1.22 million units and net sales of ¥4,918.2 billion, with a strong second-half recovery from tariff-related losses and cost improvements.

• Operating income for FY March 2026 was ¥51.6 billion, and net income was ¥35.1 billion, with an annual dividend of ¥55 per share.

• Strategic focus includes business structure transformation, multi-solution electrification, lean asset and partnership strategies, and cost structure reform.

• Launched new CX-5 and expanded electric vehicle lineup, including the award-winning Mazda6e and EZ-6.

• Faced a challenging environment with U.S. tariffs, geopolitical risks, and volatile raw material prices, leading to a review of profit structure and cost controls.

Financial highlights

• FY March 2026 net sales decreased 2% year-over-year to ¥4,918.2 billion; operating income dropped 72% to ¥51.6 billion and net income fell 69% to ¥35.1 billion.

• EPS dropped from ¥181.0 to ¥55.6 year-over-year.

• Free cash flow improved dramatically in the second half, but turned negative at ¥0.6 billion for the full year.

• Cash and cash equivalents increased by ¥187.6 billion to ¥1,293.2 billion at FY March 2026 end.

• Comprehensive income rose to ¥149.9 billion, driven by gains in other comprehensive income.

Outlook and guidance

• FY March 2027 forecasts global sales of 1.32 million units, net sales of ¥5,500.0 billion, operating income of ¥150.0 billion, and net income of ¥90.0 billion.

• Global retail volume expected to rise 8.3% to 1,324,000 units, with growth in all major regions except China.

• Operating income is expected to nearly triple, with EPS forecast to rise from ¥55.6 to ¥142.7.

• Dividend per share maintained at ¥55.

• Focus on managing uncertainties in the global environment and improving business structure.