Mazda Motor (7261) Q2 2025 earnings summary

Executive summary

• First half FY March 2025 global sales reached 630,000 units, up 2.2% year-over-year, with strong North America growth offsetting declines in Japan and China.

• Net sales rose 3.3% year-over-year to ¥2,393.9B, but operating income fell 20% to ¥103.0B and net income dropped 67% to ¥35.3B, mainly due to higher taxes and lower ordinary income.

• Full-year forecast: global sales 1.35M units, net sales ¥5T, operating income ¥200B, net income ¥140B, with best-ever North America sales partly offset by weakness in Japan and other markets.

• Interim dividend set at ¥25/share, with annual dividend planned at ¥55/share.

Financial highlights

• First half net sales rose 3% year-over-year to ¥2,393.9B; operating income fell 20% to ¥103.0B; net income dropped 67% to ¥35.3B.

• Second quarter net sales declined 3% year-over-year to ¥1,188.3B; operating income down 47% to ¥52.6B; net income negative at -¥14.5B.

• Gross profit rose to ¥528.5B from ¥484.6B year-over-year, but SG&A expenses increased significantly.

• Comprehensive income turned negative at ¥(2.1)B, compared to ¥167.1B prior year, due to large losses in other comprehensive income.

• EPS for first half ¥56.1, down from ¥171.6 year-over-year; full-year forecast EPS ¥222.1, down from ¥329.6.

Outlook and guidance

• Management remains committed to achieving full-year forecasts despite a severe competitive environment and downward profit revision.

• Full-year net sales forecast revised to ¥5T, up 4% year-over-year, but operating income expected to decline 20% to ¥200B and net income to fall 33% to ¥140B.

• Global retail volume for the full year forecast at 1,350,000 units, up 8.8% year-over-year, with growth led by North America.

• Dividend policy maintained with stable payments; annual dividend projected at ¥55/share.