Suzuki Motor (7269): FY2025 Results Summary — Record Revenue and Net Profit, Operating Profit Dips on Cost Pressures

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

Suzuki Motor Corporation reported record-high revenue of 6,293.0 billion yen (up 8.0% year on year) for FY2025 (’25/4-’26/3), but operating profit declined 3.1% to 622.9 billion yen as rising raw material costs and continued growth investment in people and technology outweighed higher sales. Fourth-quarter operating profit reached a record high for a single quarter. Profit attributable to owners of parent rose 5.6% to a record 439.3 billion yen. For FY2026, the company forecasts revenue of 6,800.0 billion yen and operating profit of 570.0 billion yen, with automobile sales volume projected to reach 3.55 million units (+7.1% year on year); higher raw material costs are expected to again result in higher revenue but lower profit. The company notes that the situation in the Middle East remains highly uncertain and that the associated risk, estimated at approximately 100.0 billion yen for the full year if it fully materializes, has not been factored into the forecast.

Consolidated Results (Full-Year Actual)

Revenue increased for the fifth consecutive period to a record high, while operating profit declined for the first time in four periods, with margin falling to 9.9% from 11.0%. According to the company’s factor analysis for the full year, change in volume (excluding external factors) contributed +58.6 billion yen (Non-Consolidated +0.9 billion yen, Maruti Suzuki India +43.6 billion yen), and change in mix/price contributed +31.9 billion yen (Non-Consolidated) and +48.6 billion yen (Maruti Suzuki India). Within the increase in fixed costs, labor costs had a -47.8 billion yen impact, marketing costs +2.3 billion yen, and quality-related costs +8.0 billion yen. Profit before tax was roughly flat at 730.7 billion yen, while profit attributable to owners of parent rose to a record 439.3 billion yen, up for the sixth consecutive period.

Item	FY2025 (’25/4-’26/3)	FY2024 (’24/4-’25/3)	Change
Revenue	6,293.0 billion yen	5,825.2 billion yen	+467.8 billion yen (+8.0%), record high, 5th consecutive increase
Operating Profit (Margin)	622.9 billion yen (9.9%)	642.9 billion yen (11.0%)	-19.9 billion yen (-3.1%), first decline in 4 periods
Profit before tax (Margin)	730.7 billion yen (11.6%)	730.2 billion yen (12.5%)	This cannot be confirmed from the materials.
Profit* (Margin)	439.3 billion yen (7.0%)	416.1 billion yen (7.1%)	+23.2 billion yen (+5.6%), record high, 6th consecutive increase
Automobile Sales Volume	3,320 thousand units	3,241 thousand units	+79 thousand units (+2.4%)
Motorcycle Sales Volume	2,261 thousand units	2,064 thousand units	+197 thousand units (+9.5%)
ROE	13.8%	14.6%	-0.7%
Annual Dividend per Share	46 yen	41 yen	+5 yen (+12.2%), record high

Segment Results

By product segment for the full year, Automobile revenue grew 8% to 5,706.4 billion yen while operating profit declined 4% to 547.6 billion yen (margin 9.6%). Motorcycle revenue grew 14% to 454.5 billion yen with operating profit up 10% to 44.8 billion yen (margin 9.9%). Marine posted the highest margin at 22.3% but operating profit fell 13% to 26.6 billion yen on 9% revenue growth to 119.5 billion yen. Others (a small segment) posted 4% revenue growth to 12.6 billion yen and 2% operating profit growth to 3.9 billion yen (margin 31.0%).

Segment	Revenue (billion yen)	Revenue YoY	Operating Profit (billion yen)	Op. Profit YoY	Op. Margin
Automobile	5,706.4	+8%	547.6	-4%	9.6%
Motorcycle	454.5	+14%	44.8	+10%	9.9%
Marine	119.5	+9%	26.6	-13%	22.3%
Others	12.6	+4%	3.9	+2%	31.0%
Total	6,293.0	+8%	622.9	-3%	9.9%

Automobile Sales Volume by Region

Global automobile sales volume reached a record 3,320 thousand units (+2.4% year on year), an increase for the sixth consecutive period, led by growth in India, Pakistan and Africa. India wholesale volume rose 3.7% to a record 1,862 thousand units, with export volume also hitting a record 448 thousand units (+34.6%). Europe declined 15.1% due in part to the discontinuation of the Ignis and Jimny, while Asia excluding India grew 15.6% partly on a recovery in Pakistan.

Region	FY2025 (thousand units)	FY2024 (thousand units)	Change
Global	3,320	3,241	+79 (+2.4%)
Japan	725	718	+7 (+1.0%)
Europe	187	220	-33 (-15.1%)
India	1,862	1,795	+66 (+3.7%)
Asia (excl. India)	213	184	+29 (+15.6%)
Others (Latin America, Africa, Middle East, Oceania)	334	324	+10 (+3.1%)

FY2026 Forecast

For FY2026, Suzuki forecasts revenue of 6,800.0 billion yen (+8.1%, a sixth consecutive increase) but expects operating profit to decline 8.5% to 570.0 billion yen (margin 8.4%), a second consecutive period of decline, on higher raw material costs. Profit attributable to owners of parent is forecast to fall 13.5% to 380.0 billion yen, the first decline in the last seven periods, with ROE expected to fall to 10.8% from 13.8%. Automobile sales volume is projected to grow 7.1% to 3,554 thousand units and motorcycle volume 2.7% to 2,321 thousand units. Assumed exchange rates are US Dollar 155 yen (+4 yen, +2.9%), Euro 180 yen (+5 yen, +3.1%) and Indian Rupee 1.70 yen (-0.02 yen, -1.2%). As noted above, the potential impact of the Middle East situation (approximately 100.0 billion yen for the full year if fully materialized) is not included in this forecast.

Item	FY2026 Forecast	FY2025 (Actual)	Change
Revenue	6,800.0 billion yen	6,293.0 billion yen	+507.0 billion yen (+8.1%), 6th consecutive increase
Operating Profit (Margin)	570.0 billion yen (8.4%)	622.9 billion yen (9.9%)	-52.9 billion yen (-8.5%), decline for 2nd consecutive period
Profit before tax (Margin)	660.0 billion yen (9.7%)	730.7 billion yen (11.6%)	-70.7 billion yen
Profit* (Margin)	380.0 billion yen (5.6%)	439.3 billion yen (7.0%)	-59.3 billion yen (-13.5%), first decline in last 7 periods
Automobile Sales Volume	3,554 thousand units	3,320 thousand units	+234 thousand units (+7.1%)
Motorcycle Sales Volume	2,321 thousand units	2,261 thousand units	+61 thousand units (+2.7%)
ROE	10.8%	13.8%	-3.1%, first decline in last 7 periods
Annual Dividend per Share	51 yen	46 yen	+5 yen (+10.9%)

Shareholder Returns

For FY2025, Suzuki paid an annual dividend of 46 yen per share, up 5 yen (+12.2%) from FY2024, equivalent to a DOE of 3.0%; the year-end dividend was 24 yen per share, up 3 yen from FY2024. For FY2026, the company forecasts an annual dividend of 51 yen per share, up 5 yen (+10.9%) from FY2025, again based on a DOE of 3.0%. Suzuki states its policy is to enhance corporate value through growth investments and to steadily implement a progressive dividend policy based on a DOE of 3.0% to meet shareholders’ expectations.

Medium-Term Management Plan “By Your Side”

Under the Mid-Term Management Plan “By Your Side,” Suzuki’s targets for FY2030 (the final year of the plan) are operating profit of 800.0 billion yen, operating profit margin of 10.0%, and ROE of 13.0%. The company states it will promote initiatives based on three pillars: “new vehicle earning,” “value chain earning,” and “fixed costs,” and will implement ROIC-based management tailored to Suzuki’s business realities while working to reduce the cost of capital.

Non-Consolidated and Maruti Suzuki India Performance

On a non-consolidated (parent-only) basis, net sales reached a record 2,967.9 billion yen (+340.0 billion yen, +12.9%), a fourth consecutive increase, comprising Japan sales of 1,297.6 billion yen (+100.4 billion yen, +8.4%) and overseas sales of 1,670.4 billion yen (+239.7 billion yen, +16.8%; general trade 824.4 billion yen, +39.1 billion yen, +5.0%; triangle trade 846.0 billion yen, +200.6 billion yen, +31.1%). Non-consolidated operating profit rose to a record 224.1 billion yen (margin 7.6%, +36.0 billion yen, +19.2%), ordinary profit to a record 284.4 billion yen (margin 9.6%, +45.4 billion yen, +19.0%), and profit to a record 253.7 billion yen (margin 8.5%, +22.6 billion yen, +9.8%), up for the seventh consecutive period.

Maruti Suzuki India (yen-converted, consolidated) posted net sales of 2,999.4 billion yen versus 2,641.0 billion yen (+358.4 billion yen); in rupee terms, net sales were 1,743.8 billion rupees versus 1,451.1 billion rupees (+292.7 billion rupees). Operating profit was 253.1 billion yen (margin 8.4%) versus 264.8 billion yen (margin 10.0%), or 147.1 billion rupees versus 145.5 billion rupees. Profit after taxes was 252.5 billion yen (margin 8.4%) versus 263.9 billion yen (margin 10.0%), or 146.8 billion rupees versus 145.0 billion rupees. Wholesales totaled 2,423 thousand units versus 2,234 thousand units (+188 thousand units), including record export volume of 448 thousand units versus 333 thousand units (+115 thousand units).

Capital Expenditures, R&D and Balance Sheet

FY2025 capital expenditures were 350.7 billion yen (-11.2 billion yen year on year), depreciation expenses were 217.7 billion yen (+21.6 billion yen), and R&D expenses (P/L basis) were 271.1 billion yen (+30.1 billion yen); R&D expenses on a cash-out basis were 270.4 billion yen (+4.9 billion yen). For FY2026, the company forecasts capital expenditures of 380.0 billion yen (+29.3 billion yen), depreciation expenses of 240.0 billion yen (+22.3 billion yen), and R&D expenses of 280.0 billion yen on both a P/L basis (+8.9 billion yen) and a cash-out basis (+9.6 billion yen). At fiscal year-end, the interest-bearing debt balance was 748.6 billion yen versus 725.3 billion yen (+23.3 billion yen), and the number of employees was 76,889 versus 74,077 (+2,812).

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.