Financial Summary for the Year Ending December 2025 [IFRS] (Consolidated)

Overview of Performance

For the fiscal year ending December 2025, consolidated revenue was 2,534.2 billion yen, down 1.6% year-over-year. Operating income decreased by 30.4% to 126.4 billion yen, and net income attributable to owners of parent decreased significantly by 85.1% to 16.1 billion yen. The main factors were the impact of U.S. tariffs, rising procurement costs, increased R&D and labor expenses, and impairment losses recorded in certain businesses. By segment, the Land Mobility business maintained solid unit sales, whereas the Marine and Outdoor Land Vehicle businesses saw declines in both revenue and profit. Financial metrics deteriorated with ROE at 1.4%, ROIC at 0.8%, and equity ratio attributable to owners of parent declining to 39.0%.

Dividends and Future Outlook

The annual dividend for the fiscal year ending December 2025 was decreased to 35 yen (interim 25 yen, year-end 10 yen) from 50 yen the previous year. For the fiscal year ending December 2026, an annual dividend of 50 yen (interim 25 yen, year-end 25 yen) is planned. The earnings guidance for the fiscal year ending December 2026 forecasts revenue of 2,700.0 billion yen (6.5% increase YoY), operating income of 180.0 billion yen (42.4% increase YoY), and net income attributable to owners of parent of 100.0 billion yen (520.8% increase YoY). Exchange rates assumed are 155 yen to the US dollar and 175 yen to the euro. Major risks include economic fluctuations, foreign exchange volatility, and regulatory changes.