Subaru (7270) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 global production was 239,000 units, down 1.7% year-over-year, with domestic declines offset by overseas gains.

• Revenue for Q1 FY2025 rose 0.9% year-over-year to ¥1,092.1 billion, driven by favorable foreign exchange despite lower unit sales.

• Operating profit increased 7.9% year-over-year to ¥91.1 billion, supported by FX gains despite higher incentives and lower unit sales.

• Net income attributable to owners rose 14.7% year-over-year to ¥84.0 billion.

• Profit before tax declined 6.4% to ¥108.0 billion due to FX impacts.

Financial highlights

• Consolidated unit sales fell to 212,000 units, a decrease of 24,000 year-over-year.

• Gross profit improved to ¥217.7 billion from ¥201.0 billion year-over-year.

• Basic EPS increased to ¥112.14 from ¥95.89 year-over-year.

• Free cash flow was negative ¥34.6 billion, and cash and cash equivalents at quarter-end were ¥954.9 billion, down from ¥1,048.0 billion at prior year-end.

• SG&A expenses rose to ¥100.9 billion, and R&D expenses slightly decreased to ¥24.2 billion.

Outlook and guidance

• Full-year FYE 2025 production forecast remains at 960,000 units, down 1.0% year-over-year.

• FY2025 revenue forecast is ¥4,720 billion (+0.4% year-over-year), with operating profit expected at ¥400 billion (-14.6%).

• Net profit forecast for FY2025 is ¥300 billion (-22.1%), with basic EPS projected at ¥399.05.

• No changes to previously announced full-year guidance.