Subaru (7270) Q1 2027 earnings summary

Executive summary

• Revenue increased 3.0% year-over-year to 1,250.9 billion yen, but operating profit dropped 44.3% to 42.6 billion yen due to lower unit sales, higher incentives, and increased raw material costs.

• Profit before tax declined by 17.0 billion yen to 61.4 billion yen, and net profit attributable to owners of parent fell 10.3% to 49.2 billion yen.

• Comprehensive income surged to 61.3 billion yen from 28.6 billion yen a year earlier, driven by favorable FX translation differences.

• U.S. tariffs impact decreased by 32.9 billion yen, but higher raw material costs and unfavorable market conditions reduced earnings by 17.0 billion yen.

Financial highlights

• Consolidated revenue rose by 36.8 billion yen year-over-year to 1,250.9 billion yen.

• Operating profit dropped by 33.8 billion yen to 42.6 billion yen year-over-year.

• Gross profit margin decreased to 14.4% from 17.8% year-over-year.

• Basic EPS was 69.02 yen, down from 75.03 yen in the prior year.

• Cash and cash equivalents at quarter-end were 932.4 billion yen.

Outlook and guidance

• Full-year forecasts remain unchanged: revenue of 5,200 billion yen, operating profit of 150.0 billion yen, and profit attributable to owners of parent at 130.0 billion yen.

• Mixed-model production of BEVs and ICE vehicles at Yajima Plant to begin soon, aiming to maximize unit sales.

• Focus on strengthening vehicle sales profit, advancing cost innovation, and expanding value chain profits.