Subaru Corporation Financial Results 2026: Revenue, Profit Impacted by U.S. Tariffs

On February 6, Subaru Corporation announced its consolidated financial performance for the nine-month period ended December 31, 2025, reflecting mounting cost pressures despite relatively stable topline performance. The Subaru Corporation financial results showed revenue contraction and a steep profitability decline, underscoring the impact of external trade factors and operational adjustments.
For the April–December 2025 period of the fiscal year ending March 31, 2026, consolidated revenue declined marginally by 0.5% year-on-year to JPY 3,519.0 billion. While pricing improvements and lower sales incentives provided partial relief, these positives were outweighed by substantial cost headwinds.

Sharp Profit Decline Amid Tariff and One-Off Cost Pressures

Operating profit dropped sharply by 82.0% year-on-year to JPY 66.3 billion. The company cited a total negative impact of JPY 302.9 billion, primarily driven by higher additional U.S. tariffs, which rose to JPY 216.6 billion, along with one-off costs recorded during the quarter. As a result, profit attributable to owners of the parent declined by 73.8% to JPY 83.1 billion.

Exchange Rate and Cost Sensitivity

Subaru’s earnings sensitivity remained closely linked to currency and trade-related factors. The assumed exchange rate for the period was JPY 150 to the U.S. dollar, amplifying the financial impact of tariff-related cost increases on consolidated profitability.

Production and Sales Volumes Affected by Plant Shutdown

Production volume for April–December 2025 declined by 9.4% year-on-year to 657,000 units. The decrease was mainly attributed to a temporary shutdown of one of the two production lines at the Yajima Plant in Gunma Prefecture. This shutdown continued until the end of January as part of preparations for in-house production of battery electric vehicles.
Consolidated sales volume also softened, falling by 4.5% year-on-year to 676,000 units. Despite these challenges, the company maintained its full-year fiscal 2026 forecast for both production and sales volumes.

Full-Year Volume Outlook Remains Unchanged

For the full fiscal year ending March 31, 2026, Subaru continues to project:

• Production of 900,000 units, representing a 4.9% year-on-year decline

• Consolidated unit sales of 920,000 units, down 1.8% year-on-year

Looking ahead, Subaru revised its full-year revenue forecast upward by JPY 220 billion to JPY 4,800 billion, implying a 2.4% year-on-year increase. However, profitability expectations were lowered, with operating profit now forecast at JPY 130 billion, reflecting a reduction of JPY 70 billion or 67.9% year-on-year. Profit attributable to owners of the parent is projected at JPY 125 billion, down JPY 35 billion or 63.0% year-on-year, highlighting continued margin pressure despite stronger revenue expectations.