Isuzu Motors (7202) Q4 2026 earnings summary

Executive summary

• Revenue increased 8% year-over-year to ¥3,479.1 billion, with global unit sales up 7–8.1%, but operating profit declined 11–11.2% to ¥203.7 billion due to U.S. tariffs, higher material costs, FX impacts, and Middle East shipment suspensions.

• CV and LCV sales volumes rose year-over-year, though some shipments were delayed and results were below prior outlooks due to Middle East disruptions.

• Market share in Japan exceeded 50% in key truck segments, and aftersales revenue hit the FY2027 target a year early.

• The company aims for 100,000 domestic CV unit sales and strong overseas sales, especially in North America, despite ongoing Middle East disruptions.

• Profit attributable to owners of parent fell 3.7–4% to ¥134.9 billion.

Financial highlights

• Operating income/profit decreased by ¥25.8 billion or 11–11.2% year-over-year to ¥203.7 billion, mainly due to external cost pressures and regional instability.

• Profit before tax rose by ¥26.9 billion to ¥230.6 billion, aided by temporary dividend income from affiliates.

• Dividend maintained at ¥92/share for FY2026; FY2027 targeted at least ¥94/share, with a payout ratio policy of 40% or more.

• Share buybacks of ¥50 billion were completed and amortized; flexible buyback policy continues.

• Free cash flow improved to ¥77.4 billion from ¥51.7 billion year-over-year.

Outlook and guidance

• FY2027 revenue forecast is ¥3,700.0 billion, up 6–6.4% year-over-year; operating profit projected at ¥260.0 billion, up 27.6–28%, despite a ¥40.0 billion negative impact from the Middle East.

• Profit attributable to owners expected to rise 18.6–19% to ¥160.0 billion.

• Dividend per share forecast to increase to at least ¥94 for FY2027; share repurchases to continue flexibly.

• Domestic and export LCV sales and production volumes expected to remain on par with the previous year, with a 10% drop in Middle East, Africa, and Asia sales anticipated.

• After-sales for industrial engines expected to remain strong, targeting ¥645 billion in sales.