Subaru (7270) Q2 2026 earnings summary

Executive summary

• Consolidated revenue for the first half of FYE 2026 rose to ¥2,385.7 billion, up 5.3% year-over-year, driven by higher unit sales and improved price/mix despite negative FX impacts.

• Consolidated unit sales increased by 23,000 units to 473,000, with growth in the U.S. and domestic markets.

• Operating profit declined sharply to ¥102.7 billion, down 53.8% year-over-year, mainly due to U.S. tariffs, increased R&D, higher raw material costs, and adverse business conditions.

• Profit attributable to owners of parent fell 44.5% year-over-year to ¥90.4 billion.

Financial highlights

• Revenue: ¥2,385.7 billion (+5.3% year-over-year).

• Operating profit: ¥102.7 billion (-53.8% year-over-year).

• Profit before tax: ¥129.5 billion (-41% year-over-year).

• Profit attributable to owners: ¥90.4 billion (-44.5% year-over-year).

• Free cash flow improved to ¥157.7 billion from ¥81.1 billion.

• Gross profit for the period was ¥385.7 billion, down from ¥484.0 billion a year earlier.

• Basic EPS declined to ¥123.90 from ¥219.09 year-over-year.

• Cash and cash equivalents at period end increased to ¥1,023.2 billion.

Outlook and guidance

• Full-year FYE 2026 guidance unchanged: revenue ¥4,580 billion, operating profit ¥200 billion, profit before tax ¥230 billion, net profit ¥160 billion.

• Production and consolidated unit sales targets remain at 900,000 and 920,000 units, respectively.

• Capex, depreciation, and R&D guidance unchanged.

• No revisions to previously announced forecasts.