Mitsubishi Motors (7211) Q2 2026 earnings summary

Executive summary

• First half FY2025 net sales declined 4% year-on-year to ¥1,261.3 billion, with operating profit dropping 81% to ¥17.3 billion and a net loss of ¥9.2 billion, driven by one-time valuation and withdrawal losses.

• Global retail sales fell 6% year-on-year to 384,000 units, with declines in most regions except Japan and Latin America.

• Structural reforms included divestiture of the engine business in China and suspension of operations at a Thai plant.

Financial highlights

• Operating profit margin decreased from 6.9% to 1.4% year-on-year.

• Ordinary profit was ¥15.8 billion, down 77% year-on-year; net loss mainly from a ¥7 billion U.S. environmental credit valuation loss and ¥6 billion China JV withdrawal loss.

• Free cash flow for 1H FY2025 was -¥129.6 billion, a significant deterioration from ¥5.1 billion in 1H FY2024.

• Total assets decreased by ¥87.1 billion and net cash position declined by ¥156.6 billion compared to the end of FY2024.

Outlook and guidance

• Full-year net sales forecast revised to ¥2,820.0 billion, with operating profit expected to halve to ¥70.0 billion and net income projected at ¥10.0 billion.

• Dividend per share maintained at ¥10.

• Retail sales volume is expected to remain flat at 843,000 units.

• Operating profit for the full year expected to be pressured by higher costs, negative forex impact, and U.S. tariffs estimated to impact profit by ¥32 billion.