Mitsubishi Motors (7211): FY2025 Results Summary — U.S. Tariffs and Incentive Pressure Cut Profit, New Models to Drive FY2026 Rebound

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Mitsubishi Motors reported FY2025 (April 2025–March 2026) consolidated net sales of ¥2,896.5 billion, up 4% year on year, but operating profit fell 46% to ¥75.5 billion (OP margin 2.6%) and net income attributable to owners of the parent dropped 76% to ¥10.0 billion, as U.S. tariff payments, incentive pressure and inflation weighed on results. The company said it secured profit at the level of its revised plan despite an increasingly uncertain environment, citing a strong start for new models including the all-new “Destinator”. The annual dividend per share for FY2025 was ¥10 (¥5 at year-end), down from ¥15 in FY2024. For FY2026, Mitsubishi Motors forecasts operating profit of ¥90.0 billion and net income of ¥25.0 billion, after taking Middle East risks into account, with dividend per share forecast at ¥10.

Consolidated Results (Full-Year Actual)

Full-year retail sales volume declined 5% to 797 thousand units (FY2024: 842 thousand units). Ordinary profit fell 20% to ¥78.9 billion. By quarter, operating profit strengthened through the year, from ¥5.6 billion (1Q) and ¥11.7 billion (2Q) to ¥14.3 billion (3Q) and ¥43.9 billion (4Q); net income was negative in 2Q (-¥9.9 billion) before recovering to ¥4.7 billion in 3Q and ¥14.5 billion in 4Q. On a full-year basis excluding U.S. tariff effects, operating profit was ¥122.9 billion; U.S. tariff payments reduced operating profit by ¥47.4 billion. Other key drivers of the year-on-year decline included incentives (-¥43.1 billion), inflation impact, etc. (-¥40.8 billion) and foreign exchange effects (-¥37.4 billion, led by Thai baht appreciation), partly offset by procurement cost reduction (+¥32.3 billion) and a quality related cost improvement (+¥11.8 billion).

Item	FY2025	FY2024	Change
Net Sales (Billion yen)	2,896.5	2,788.2	+108.3 (+4%)
Operating Profit (Billion yen) / OP Margin	75.5 (2.6%)	138.8 (5.0%)	-63.3 (-2.4pp) / -46%
Ordinary Profit (Billion yen)	78.9	98.6	-19.7 (-20%)
Net Income* (Billion yen)	10.0	41.0	-31.0 (-76%)
Dividend per Share (¥)	¥10	¥15	–
Retail Sales Volume (000 units)	797	842	-45 (-5%)

Segment Results

Mitsubishi Motors reports results by region rather than by business segment. In FY2025, net sales grew in Europe (+¥84.9 billion), Japan (+¥27.8 billion), ASEAN (+¥47.1 billion) and China, others (+¥7.6 billion), while Australia/NZ (-¥35.1 billion) and North America (-¥72.5 billion) declined. Regional operating profit fell sharply in North America (¥76.9 billion → ¥19.1 billion) and swung to a loss in Australia/NZ (¥25.2 billion → -¥7.5 billion), while Japan improved to a profit of ¥17.8 billion from a loss of ¥7.4 billion in FY2024. ASEAN, Europe and China, others all posted higher operating profit than FY2024.

Segment	Metric	FY2025	FY2024
GLOBAL	Net Sales (Billion yen)	2,896.5	2,788.2
GLOBAL	Operating Profit (Billion yen)	75.5	138.8
ASEAN	Net Sales (Billion yen)	613.5	566.4
ASEAN	Operating Profit (Billion yen)	22.9	19.8
Australia/NZ	Net Sales (Billion yen)	286.0	321.1
Australia/NZ	Operating Profit (Billion yen)	-7.5	25.2
Latin America, Middle East/Africa, etc.	Net Sales (Billion yen)	452.8	404.3
Latin America, Middle East/Africa, etc.	Operating Profit (Billion yen)	14.3	17.2
Japan	Net Sales (Billion yen)	659.4	631.6
Japan	Operating Profit (Billion yen)	17.8	-7.4
North America	Net Sales (Billion yen)	661.7	734.2
North America	Operating Profit (Billion yen)	19.1	76.9
Europe	Net Sales (Billion yen)	212.0	127.1
Europe	Operating Profit (Billion yen)	7.1	6.5
China, others	Net Sales (Billion yen)	11.1	3.5
China, others	Operating Profit (Billion yen)	1.8	0.6

By model, the newly launched “Destinator” contributed 24 thousand retail units in FY2025 (rank 12), while “XFORCE/HEV” rose 16 thousand units to 49 thousand units and “Delica Mini/eK Space” rose 9 thousand units to 53 thousand units. “Outlander/PHEV” remained the No.2 model at 130 thousand units despite an 8 thousand unit decline, while “Mirage/Space Star/Mirage G4/Attrage” fell 64 thousand units to 42 thousand units.

FY2026 Forecast

For FY2026 (April 2026–March 2027), Mitsubishi Motors forecasts net sales of ¥3,260.0 billion (+13%), operating profit of ¥90.0 billion (+19%, OP margin 2.8%), ordinary profit of ¥80.0 billion (+1%) and net income attributable to owners of the parent of ¥25.0 billion (+150%), on retail sales volume of 857 thousand units (+8%). The forecast is made after taking Middle East risks into account. Cost items expected to affect the bridge from FY2025 to FY2026 operating profit include procurement cost reduction (+¥27.8 billion), inflation impact, etc. (-¥49.3 billion), environmental regulatory compliance costs (-¥7.2 billion), factory expenses (-¥7.0 billion) and incentives (-¥7.2 billion), partly offset by advertising expenses (+¥0.4 billion).

Item	Forecast	FY2025 (Actual)
Net Sales (Billion yen)	3,260.0	2,896.5
Operating Profit (Billion yen) / OP Margin	90.0 (2.8%)	75.5 (2.6%)
Ordinary Profit (Billion yen)	80.0	78.9
Net Income* (Billion yen)	25.0	10.0
Dividend per Share (¥)	¥10	¥10
Retail Sales Volume (000 units)	857	797

Region	Net Sales FY2026 Forecast	Net Sales FY2025 (Actual)	Change
GLOBAL	3,260.0	2,896.5	+363.5
ASEAN	710.0	613.5	+96.5
Australia/NZ	335.0	286.0	+49.0
Latin America, Middle East/Africa, etc.	460.0	452.8	+7.2
Japan	765.0	659.4	+105.6
North America	710.0	661.7	+48.3
Europe	270.0	212.0	+58.0
China, others	10.0	11.1	-1.1

FY2026 Initiatives

Mitsubishi Motors plans to grow retail sales volume from 797 thousand units in FY2025 to 857 thousand units in FY2026 (+60 thousand units), driven in part by its ASEAN strategic models — XPANDER (ICE/HEV), XFORCE (ICE/HEV) and DESTINATOR — which are forecast to increase from 174 thousand units to 221 thousand units (+47 thousand units). By region, key initiatives include: ASEAN — achieve full-year contribution from new models, launch an all-new cross-country SUV, and expand the HEV model; Oceania — strengthen brand value through new model launches and lineup enhancement; Latin America — focus on and expand sales of “L200/Triton” and accelerate sales of the all-new “Destinator”; Middle East/Africa — execute a sequential rollout of the all-new “Destinator” and establish the brand with SUVs at its core; Japan — expand sales of the Delica series and launch a new model; North America — strengthen dealer retail sales by expanding variants; and Europe — strengthen sales of core models “Outlander PHEV”, “Grandis” and “Eclipse Cross”.

Shareholder Returns

Mitsubishi Motors paid a full-year dividend per share of ¥10 for FY2025 (¥5 at year-end), down from ¥15 in FY2024. For FY2026, the company forecasts a dividend per share of ¥10, unchanged from FY2025, after taking Middle East risks into account.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.