Mitsubishi Motors (7211) Q1 2026 earnings summary

Executive summary

• Net sales for 1Q FY2025 declined 3% year-over-year to ¥609.1 billion, with operating profit dropping 84% to ¥5.6 billion and net income falling 98% to ¥0.7 billion, mainly due to new U.S. tariffs and intensified global competition.

• Retail sales volume remained stable at 194,000 units globally, with mixed regional performance and challenging market conditions.

• Recent U.S.-Japan tariff agreement reduces the additional tariff from 25% to 15%, offering some relief but ongoing uncertainty.

Financial highlights

• Operating profit margin decreased from 5.7% to 0.9% year-over-year; ordinary profit fell to ¥4.8 billion.

• Cash and deposits decreased by ¥123.1 billion to ¥329.4 billion at the end of June 2025; net cash position declined by ¥95.7 billion to ¥298.8 billion.

• Foreign exchange rates negatively impacted results by ¥20.9 billion; tariffs cost ¥14.4 billion.

• Sales expenses increased due to higher incentives, reducing operating profit by ¥9 billion.

• Capital expenditure rose 9% year-over-year to ¥12.1 billion; R&D expense increased 3% to ¥30.1 billion.

Outlook and guidance

• Full-year forecast maintained: net sales ¥2,950 billion (+5.8%), operating profit ¥100 billion (down 28%), net income ¥40 billion (down 2%), EPS ¥29.89.

• Retail sales volume projected to increase 4% to 878,000 units.

• Dividend per share forecasted at ¥10, down from ¥15 in FY2024.

• Current earnings forecast maintained due to mixed effects of tariffs and competitive pressures; further revisions possible after detailed assessment.