Mazda Motor (7261) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 11% year-over-year to ¥1,205.6 billion, the highest ever for a first quarter.

• Operating income increased 68% year-over-year to ¥50.4 billion, driven by yen depreciation and offsetting higher sales incentives.

• Global sales volume held steady at 309,000 units, with North America achieving a first-quarter record high since 1999.

• Comprehensive income for Q1 FY2025 was ¥71.8 billion, slightly down from ¥73.8 billion in the prior year.

• Limited financial impact from type designation irregularities; trust restoration and compliance measures underway.

Financial highlights

• Net sales: ¥1,205.6 billion (+11% YoY); Operating income: ¥50.4 billion (+68% YoY); Net income: ¥49.8 billion (+34% YoY).

• Operating return on sales improved to 4.2% from 2.8% YoY.

• EPS rose to ¥79.1 from ¥59.1 YoY.

• Gross profit increased to ¥257.1 billion from ¥216.4 billion YoY.

• Free cash flow turned positive at ¥6.0 billion, compared to negative ¥0.4 billion a year ago.

Outlook and guidance

• Full-year global sales and wholesale forecasts unchanged; targeting 1.4 million global sales (+13% YoY).

• Full-year net sales forecast at ¥5,350.0 billion (+11% YoY); operating income forecast at ¥270.0 billion (+8% YoY).

• Net income forecast at ¥150.0 billion (-28% YoY), with revised FX assumptions of 150 JPY/USD and 162 JPY/EUR.

• Focus on North America, new product launches, electrification, and cost reduction.