Subaru Corporation Revises Earnings Forecast — Operating Profit Slashed 69%
Subaru Corporation (TSE:7270) has significantly downgraded its earnings guidance for the fiscal year ending March 2026, citing weak U.S. sales and battery electric vehicle (BEV) strategy headwinds.
| Item | Before | After | Change |
|---|---|---|---|
| 売上収益 | JPY 4800.0bn | JPY 4780.0bn | -0.4% |
| Operating Profit | JPY 130.0bn | JPY 40.0bn | -69.2% |
| 税引前利益 | JPY 180.0bn | JPY 107.0bn | -40.6% |
| 親会社の所有者に帰属する当期利益 | JPY 125.0bn | JPY 90.0bn | -28.0% |
The automaker attributed the sharp downward revision to multiple headwinds. U.S. sales volumes have declined due to severe winter weather and disruptions in international shipping routes caused by Middle East tensions. Additionally, Subaru reassessed demand forecasts following the relaxation of U.S. environmental regulations. Most significantly, the company recorded impairment losses on battery EV development assets and expensed related restructuring costs in the current period, weighing heavily on profitability.
Operating profit plummeted from JPY 130.0bn to JPY 40.0bn, a 69.2% contraction, while net profit attributable to parent company shareholders fell 28.0% to JPY 90.0bn. Pre-tax profit declined 40.6% to JPY 107.0bn. Earnings per share dropped to JPY 124.33 from JPY 172.72. The company maintained its dividend forecast unchanged despite the earnings deterioration, signaling confidence in long-term cash generation. However, the magnitude of the operating profit reduction underscores rapid deterioration in the operating environment and strategic challenges in electrification, warranting close monitoring by investors.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.