Subaru cuts FY 2025 operating profit estimate to 40 bil. yen, 90% drop

Subaru Corp. on Monday slashed its operating profit estimate for the year ended March to 40 billion yen ($255 million) from 130 billion yen, down 90.1 percent from the previous year, weighed down by losses tied to its electric vehicle business.

Its net profit estimate for fiscal 2025 was also lowered to 90 billion yen, a 73.4 percent drop from a year earlier. It previously projected a net profit of 125 billion yen.

The second downward revision for the just-ended fiscal year, following one in February, reflects the challenging EV business environment in the medium to long term, partly due to slowing zero-emission vehicle sales in the U.S. market on the back of eased emissions regulations.

U.S. snowstorms and the Middle East conflict also disrupted vehicle shipping operations and dented vehicle sales.

In February, Subaru cut its net profit forecast to 125 billion yen from 160 billion yen and its operating profit outlook to 130 billion yen from 200 billion yen due to the impact of U.S. tariff policies.

==Kyodo

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