Subaru Corporation TSE:7270
Subaru : Presentation of Consolidated Financial Results for FYE2026 (with transcripts)
Source: MarketScreener
Consolidated Financial Results for FYE 2026
SUBARU CORPORATION
Atsushi Osaki, Representative Director, President & CEO
May 15th, 2026
https://www.subaru.co.jp/en/ir/
https://www.subaru.co.jp/en/ir/
Good afternoon, everyone. I'm Atsushi Osaki from Subaru
Thank you very much for taking time out of your busy schedules to attend Subaru
Corporation's earnings briefing for the fiscal year ending March 2026.
I would also like to take this opportunity to express my sincere gratitude for your continued support of our business activities.
F Y E 2 0 2 6 R e s u l t s
A combined impact at the 300-billion-yen level from U.S. tariffs, foreign exchange effects, and higher raw material costs
Operating profit of 40.1 billion yen, reflecting the recognition of major expenses related to environmental regulatory credits and BEVs following significant changes in U.S. environmental regulations, with FYE 2026 as the peak year for those expenses
Proactive and flexible actions taken across development, production, and sales to address tariff impacts and higher raw material costs
Formulation and announcement of the "SUBARU Management Policy 2025" as a roadmap to strengthen resilience in the business foundation and continue striving to be "a compelling company with a strong presence"
https://www.subaru.co.jp/en/ir/
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Initiatives
Earnings
First, I will begin with our results for the fiscal year ended March 2026 (FYE 2026).
FYE 2026 was a year significantly affected by changes in the external environment. These factors, including U.S. tariffs, exchange rate fluctuations, and higher raw material costs, had a combined impact at the 300-billion-yen level.
In addition, following significant changes in U.S. environmental regulations, we recorded major expenses related to environmental regulatory credits and BEVs. As a result, operating profit came in at 40.1 billion yen.
At this point, we believe that most of the major BEV-related expenses that can reasonably be anticipated have been recognized, with FYE 2026 representing the peak year.
Although the impact of tariffs and higher raw material costs could not be fully offset, we achieved tangible results by responding swiftly and collaboratively across development, production, and sales.
FYE 2026 reaffirmed our ability to adapt to environmental changes through flexible and agile execution.
In November last year, we formulated and announced the "SUBARU Management Policy 2025" as a roadmap to strengthen resilience in our business foundation and to continue striving to be a compelling company with a strong presence.
We set out our commitment to enhancing our presence and becoming an indispensable company for people, communities, and society by pursuing flexibility in manufacturing, value creation, and further differentiation of the Subaru brand.
Progress of the SUBARU Management Policy 2025 and Key Areas of Focus Going Forward
Development: Digitally enabled, agile development processes with shortened lead time established through BEV development efforts
Production: Mixed-model production of BEVs and ICE/HEV models is being established
as a foundation for flexible manufacturing
Products: With the introduction of in-house developed BEVs postponed, shifting development resources toward expanding the ICE/HEV product lineup
Value Chain: Translating Subaru's unique strength - strong connections with customers - into profits
Cost Reform: Steadily executing the unprecedented cost reform initiative, "Cost Innovation 20-30"
https://www.subaru.co.jp/en/ir/
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Key Areas of Focus Going Forward
Progress of the Management Policy 2025
Next, I will discuss the progress of the SUBARU Management Policy 2025, followed by the key areas we will focus on going forward.
First, I will start with the progress of development and production.
In development, our BEV initiatives enabled us to establish digitally enabled, agile development processes with shorter lead times. We are now gaining strong confidence in applying this know-how to ICE/HEV models as well.
In production, as previously communicated, following a six-month construction period, we have completed the groundwork for mixed-model production of BEVs and ICE/HEV models at the Yajima Plant. production of BEVs began in February this year, marking an important step toward flexible manufacturing.
Next, I will move on to our key areas of focus going forward, covering products, the value chain, and cost reform.
In products, we have decided to postpone the launch timing of in-house BEVs and to shift development resources toward expanding the ICE and HEV product lineup.
Going forward, we will leverage the capabilities, technological assets, and expertise gained through BEV development to enable timely vehicle development and further lineup expansion.
Although the introduction of in-house BEVs has been postponed, our view that BEVs remain an important option for achieving carbon neutrality society has not changed.
Development of essential future technologies, including batteries and eAxles, will therefore continue.
At the same time, BEVs introduced globally from 2026, such as the Trailseeker, as well as the three-row SUV Getaway announced in the U.S. market, have been highly evaluated by the market. Through our alliance with Toyota Motor Corporation, we have been able to bring BEVs to market while controlling investment and expanding customer options. This represents a significant achievement not only in terms of product evaluation, but also as an accumulation of technologies
that can be leveraged in the future.
In the value chain, we will develop initiatives that convert SUBARU's strength-our strong connections with customers-into revenue. Starting with last year's organizational restructuring in the after-sales operations, we have incorporated accessories planning from the product planning stage and strengthened vehicle planning and sales that leverage accessories. In addition, by further expanding the subscriber base for connected services, we aim to generate sustainable revenue streams.
In cost reform, we will pursue thoroughly low-cost structures from the early stages of new vehicle development, involving manufacturing, procurement, and sales functions.
Furthermore, as we steadily implement "Cost Innovation 20-30,"we will work closely with our business partners, to strongly promote initiatives such as "Ease of Production (EP)", which addresses their production challenges and form the foundation of our cost structure reform by optimizing quality and costs through parts integration.
F Y E 2 0 2 7 O u t l o o k
Downside risks of over 130 billion yen to earnings are anticipated, due to higher raw material costs and adverse precious metals market conditions, as well as the impact of the Middle East situation
Aiming for operating profit of 150 billion yen by translating the outcomes of "SUBARU Management Policy 2025" into profits and increasing global sales through the ICE/HEV lineup strengthened since last year
https://www.subaru.co.jp/en/ir/
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Initiatives
Impact on Earnings from External Factors
Next, I will discuss our outlook for the fiscal year ending March 2027 (FYE 2027).
Compared to FYE 2026, while lower tariff impacts and a decrease in environmental-related costs are expected to support earnings, we also anticipate downside risks of over 130 billion yen due to higher raw material costs, adverse precious metals market conditions, and the impact of the Middle East situation.
Under these circumstances, FYE 2027 will be a year in which we steadily translate the outcomes of the SUBARU Management Policy 2025 into earnings.
We will also enter a phase in which a broader range of new products become fully in place, including ICE-based models such as hybrid versions of the Forester and Crosstrek, which have been expanded since last year, as well as BEVs developed through our alliance.
In addition to lineup expansion, we will further strengthen agile measures such as optimizing grade structures to capture customer demand and enhancing cross-market allocation. Through these efforts, we aim to maintain steady sales in the highly competitive U.S. market while further expanding sales in Japan, Canada, and other global markets. By doing so, we will seek to mitigate external risks and aim to achieve an operating profit of 150 billion yen.
A i m i n g f o r S u s t a i n a b l e G r o w t h
Aim to achieve industry-leading profitability and pursue an ROE of 10% or higher,
as a long-term target toward 2030
Execute growth investments and shareholder returns, both of which lead to improving
medium- to long-term capital efficiency
Shareholder Returns
・Dividends, which constitute the basis of shareholder returns, are implemented based on 3.5% DOE*
・Resolved to conduct share repurchases of up to 150 billion yen on May 15th
Raise capital profitability by expanding earnings through the implementation of
"SUBARU Management Policy 2025"
* Excluding "other components of equity" that are subject to significant fluctuations due to foreign exchange movements and other factors Dividend on Equity (DOE) = annual dividends / (Equity attributable to owners of parent - other components of equity)
https://www.subaru.co.jp/en/ir/
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And looking ahead, we will also work to further enhance capital profitability.
Although the management environment remains uncertain, there has been no change to the targets we have set toward 2030 of achieving industry-leading profitability and an ROE of 10% or higher.
To achieve these targets, we will maintain a balanced approach built on the three pillars of "Financial Soundness and Stability," "Growth Investments," and "Shareholder Returns," all of which contribute to raise capital efficiency over the medium to long term.
With regard to shareholder returns, in addition to dividends based on the DOE framework introduced from FYE 2025,
we will conduct a share repurchase of up to ¥150.0 billion as announced today.
In addition to these measures, we will strongly drive the initiatives outlined in the "2025 Policy," further strengthen our earnings power, and thereby enhance capital profitability.
Consolidated Financial Results for FYE 2026
SUBARU CORPORATION
Shinsuke Toda, Director, Managing Executive Officer & CFO
May 15th, 2026
https://www.subaru.co.jp/en/ir/
https://www.subaru.co.jp/en/ir/
Hello everyone, I am Shinsuke Toda, CFO of Subaru Corporation.
Consolidated Financial Results for FYE 2026
https://www.subaru.co.jp/en/ir/
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FYE 2025 Results(a) | FYE 2026 Previous Forecast*2(b) | FYE 2026 Results(c) | Variance (c)-(a) | Variance (c)-(b) | |
Production in U.S. | 345 | - | 355 | +11 | - |
Production in Japan | 602 | - | 525 | -77 | - |
Production*1 Total | 946 | 900 | 880 | -66 | -20 |
FYE 2025 Results(a) | FYE 2026 Previous Forecast(b) | FYE 2026 Results(c) | Variance (c)-(a) | Variance (c)-(b) | |
Consolidated Unit Sales Total | 936 | 920 | 896 | -41 | -24 |
I will first explain consolidated results for FYE 2026.
Production fell 66 thousand units year on year to 880 thousand units.
U.S. production increased 11 thousand units, while domestic production decreased 77 thousand units. This decline was mainly due to the impact of construction work at the Yajima Plant in preparation for in-house production of BEVs, resulting in the temporary shutdown of one of the plant's two. The construction was completed successfully, and we began in-house production of BEVs in February, with operations progressing smoothly.
Production volume of the jointly developed BEVs with Toyota Motor Corporation at the Yajima Plant is not included in our production results, as it is contract manufacturing for Toyota.
Consolidated unit sales fell 41 thousand units year on year to 896 thousand units.
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 ：
C o m p l e t e C a r s P r o d u c t i o n / C o n s o l i d a t e d U n i t S a l e s
(Thousand Units)
*1 Production figures include Toyota GR86, excluding jointly developed BEVs with Toyota Motor Corporation.
*2 Announced on February 6th, 2026
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Passenger cars Minicars | FYE 2025 Results(a) 91 13 | FYE 2026 Previous Forecast(b) - - | FYE 2026 Results(c) 87 16 | Variance (c)-(a) -4 +2 | Variance (c)-(b) - - |
Domestic total | 104 | 104 | 103 | -1 | -1 |
U.S. 662 | - | 641 | -21 | - | |
Canada | 70 | - | 67 | -3 | - |
North America total | 732 | 727 | 708 | -24 | -19 |
Europe | 23 | - | 23 | -0 | - |
Australia | 44 | - | 31 | -12 | - |
China | 3 | - | 2 | -1 | - |
Others | 31 | - | 29 | -3 | - |
Overseas total | 832 | 816 | 793 | -39 | -23 |
Total | 936 | 920 | 896 | -41 | -24 |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 ：
C o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t )
(Thousand Units)
9
Let's move on to consolidated unit sales by market.
Sales volume decreased in overseas markets, while the Forester achieved increased sales in its key markets, including the U.S., Japan and Canada.
In the U.S. market, volumes declined by 21 thousand units year on year, mainly due to the temporary shutdown at the Yajima Plant, as well as the impact of a cold wave at the beginning of the year.
In addition, tensions in the Middle East affected shipping operations, partly constraining shipments and sales in overseas markets.
FYE 2025 Results(a) | FYE 2026 Previous Forecast(b) | FYE 2026 Results(c) | Variance (c)-(a) | Variance (c)-(b) | |
Revenue | 46,858 | 48,000 | 47,850 | +992 | -150 |
Domestic | 6,514 | - | 6,999 | +485 | - |
Overseas | 40,344 | - | 40,851 | +507 | - |
Operating profit | 4,053 | 1,300 | 401 | -3,652 | -899 |
Profit before tax | 4,485 | 1,800 | 1,075 | -3,410 | -725 |
Profit for the period attributable to owners of parent | 3,381 | 1,250 | 908 | -2,472 | -342 |
SUBARU US$ exchange rate | ¥152 | ¥150 | ¥150 | -¥2 | +¥0 |
EURO | ¥162 | ¥173 | ¥174 | +¥12 | +¥1 |
CAN$ | ¥110 | ¥110 | ¥109 | -¥1 | -¥1 |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 ：
C o n s o l i d a t e d P r o f i t R e s u l t s
(100 Million Yen)
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Let's move on to the consolidated profit results.
Despite the negative impact from lower unit sales and approximately the 2-yen appreciation of the Japanese yen against the U.S. dollar, revenue was 4,785.0 billion yen, supported by an improved price & mixture.
Operating profit decreased by 89.9 billion yen from the previous forecast to 40.1 billion yen. The details of the factors behind this decline will be explained on the next page.
Profit before tax was 107.5 billion yen, and profit for the period attributable to owners of parent was 90.8 billion yen.
Amount of profit reduction | Main factors working to reduce profit | |
Decline in unit sales | −220 |
|
BEV-related expenses | −578 |
|
Foreign exchange impact | −100 |
(Rate at end 3Q: 157 yen ; Rate at end 4Q: 160 yen) |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 ：
O p e r a t i n g P r o f i t : F a c t o r s W o r k i n g t o R e d u c e P r o f i t V s . F o r e c a s t a s o f 3 Q
(100 Million Yen)
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Moving on, I will explain the factors behind the decrease in operating profit relative to the forecast of 130.0 billion disclosed at the 3rd quarter results.
First, a decline in unit sales. Operating profit decreased by 22.0 billion yen, mainly due to a decline of 24 thousand units in sales, reflecting the impact of a cold wave in the
U.S. at the beginning of the year and disruptions to shipping operations for overseas markets caused by rising tensions in the Middle East.
Next, BEV-related expenses. In light of significant changes in U.S. environmental regulations, we announced in our previous earnings presentation that we would recognize expenses related to environmental regulatory credits and associated losses. On the other hand, we have recently recognized that the significant regulatory changes could materially impact the medium- to long-term demand for BEVs, as well as our BEV sales outlook. Accordingly, we reassessed the recoverability of development assets related to BEVs and recorded an impairment loss. In addition, we made a reasonable estimate of the related costs associated with this review based on the information currently available and recognized total expenses of 57.8 billion.
Finally, foreign exchange impacts. Foreign exchange effects, including the weak yen of 160 at fiscal year-end, increased the yen value of foreign-currency warranty provisions and, together with other factors, reduced profit by10.0 billion.
As a result of the above factors, operating profit came in at 40.1 billion yen.
by sales volume -788 by price & mixture +1,202 | |
03 | +524 |
Changes in business environment | -2,893 | Manufacturing activities | -503 | Sales activities | +524 | Cost reduction efforts | +231 | Other | -1,011 |
Impact of U.S. Additional Tariffs -2,269 | R&D expenses | -270 | Sales volume & mix , etc. | +414 | Cost reduction | +231 | BEV-related expenses | -578 | |
Material cost, etc. | -386 | Fixed manufacturing cost | -233 | Sales related cost | +64 | Warranty claims | -343 | ||
Curerncy exchange * | -238 | Sales incentives | +41 | Expenses related to environmental regulatory | -201 | ||||
| -127 | Parts and Accessories | -67 | credits and associated losses | |||||
| +73 | Other profit related to vehicle | +72 | Others | +111 | ||||
| -184 | ||||||||
difference | |||||||||
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 ：
A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d )
(100 Million Yen)
-2,893
4,053
-5
+231
-1,011
Changes in business
environment
Manufacturing activities
Sales activities
Cost reduction
efforts
401
Other
FYE 2025
Results
- 3 , 6 5 2
FYE 2026
Results
* "Sales-purchase exchange rate difference" and "Unrealized gain" are variance affected by exchange rate fluctuations in overseas sales.
"End-of-period exchange rate difference" is variance which arises from revaluing foreign currency-denominated provisions in yen.
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This is the analysis of variance in operating profit results compared to the previous fiscal year.
Due to changes in the business environment, including the impact of additional U.S. tariffs and deterioration in raw material costs and market conditions, operating profit decreased by 289.3 billion yen.
Manufacturing activities resulted in a 50.3 billion yen decrease, mainly due to an increase in R&D expenses for new products to be introduced in the future.
Against these negative factors, sales activities contributed a 52.4 billion yen increase through improvements in price & mixture. Cost reduction also contributed a 23.1 billion yen increase.
Other factors resulted in a 101.1 billion yen decrease, which includes expenses related to environmental regulatory credits and associated losses, as well as BEV-related expenses.
As of March 2025 | As of March 2026 | Variance |
Cash and cash equivalents including time deposits(A) 15,897 | 14,534 | -1,363 |
Cash and cash equivalents 9,415 | 10,053 | +639 |
Time deposits 6,482 | 4,480 | -2,002 |
Interest bearing debts Balance at end of period*(B) 3,995 Net cash including time deposits(A-B) 11,902 | 3,845 10,689 | -150 -1,213 |
F Y E 2 0 2 6 ：
C o n s o l i d a t e d S t a t e m e n t o f C a s h F l o w s / C a s h a n d c a s h e q u i v a l e n t s
(100 Million Yen)
FYE 2025
Results
Net cash provided by (used in) operating activities
4,921
Net cash provided by (used in) investing activities -4,041
Free cash flows 881
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
-1,873
-73
* Lease liabilities are not included in the results above.
https://www.subaru.co.jp/en/ir/
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3,582
-1,147
2,436
-2,178
381
FYE 2026
Results
This is the consolidated statement of cash flows and cash and cash equivalents.
Net cash provided by operating activities was 358.2billion yen, net cash used in investing activities was -114.7billion yen, resulting in free cash flow came to 243.6billion yen.
Cash and cash equivalents including time deposits decreased by 136.3billion yen from the end of the previous fiscal year to 1,453.4billion yen, and the balance of interest bearing debts increased by 15.0billion yen from the end of the previous fiscal year to 384.5billion yen.
As a result, net cash including time deposits decreased by 121.3billion yen from the end of the previous fiscal year to 1,068.9 billion yen.
FYE 2025 Results(a) | FYE 2026 Previous Forecast(b) | FYE 2026 Results(c) | Variance (c)-(a) | Variance (c)-(b) | |
Capex *1 | 1,761 | 2,300 | 2,102 | +341 | -198 |
Depreciation *1 | 968 | 1,000 | 1,036 | +67 | +36 |
R&D expenditures *2 | 1,600 | 1,600 | 1,580 | -19 | -20 |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 ：
C a p e x / D e p r e c i a t i o n / R & D
(100 Million Yen)
*1 Leases, capex & amortization for intangible assets and lease liabilities are not included in the results and forecast above.
*2 Research and development activity related costs incurred during the reporting period are written.
In accordance with IFRS, as a part of research and development expenditures is recorded as an intangible asset and amortized over its estimated useful life, this amount is different from "Research and development expenses" on Consolidated Statements of Income on IFRS.
(It matches with R&D expenses in consolidated statement of income on JGAAP)
14
Actual capex and related figures are as you see on this slide.
Forecast for FYE 2027
https://www.subaru.co.jp/en/ir/
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FYE 2026 Results | FYE 2027 Forecast | Variance |
Production in U.S. 355 | - | - |
Production in Japan 525 | - | - |
Production* Total 880 | 900 | +20 |
FYE 2026 Results | FYE 2027 Forecast | Variance |
Consolidated Unit Sales Total 896 | 940 | +44 |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 7 F o r e c a s t ：
C o n s o l i d a t e d U n i t S a l e s / C o m p l e t e C a r s P r o d u c t i o n
(Thousand Units)
* Production figures include Toyota GR86, excluding jointly developed BEVs with Toyota Motor Corporation.
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Next, let's look at the full-year forecast for FYE 2027.
We are targeting production of 900 thousand units, up 20 thousand units year on year. Please note that production volume does not include the jointly developed BEVs with Toyota Motor Corporation, for the reason mentioned earlier.
We aim to achieve consolidated unit sales of 940 thousand units, up 44 thousand units year on year.
FYE 2026 Results | FYE 2027 Forecast | Variance | |
Domestic total | 103 | 108 | +5 |
North America | 708 | 736 | +28 |
Others | 85 | 96 | +11 |
Overseas total | 793 | 832 | +39 |
Total | 896 | 940 | +44 |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 7 F o r e c a s t ：
C o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t )
:
(Thousand Units)
17
Consolidated unit sales forecast by market are as you see on this slide.
We are targeting an increase of 39 thousand units year on year in overseas markets, including an increase of 28 thousand units in North America, and aim to achieve an overall increase of 44 thousand units globally. To achieve this, we will steadily capture demand for new ICE/HEV models introduced since last year, while making flexible adjustments to production and sales of models, grades, and destinations in line with demand in each market.
At the Yajima Plant, where BEV production began in February this year, we plan to start mixed production of BEVs and ICE models from around summer and gradually increase utilization rates and transition to full-scale production from the latter part of the second half. Following the transition to full-scale production, we will aim to further expand unit sales while capturing demand as much as possible.
FYE 2026 Results | FYE 2027 Forecast | Variance | |
Revenue | 47,850 | 52,000 | +4,150 |
Domestic | 6,999 | - | - |
Overseas | 40,851 | - | - |
Operating profit | 401 | 1,500 | +1,099 |
Profit before tax | 1,075 | 1,800 | +725 |
Profit for the period attributable to owners of parent | 908 | 1,300 | +392 |
Exchange rate US$ | ¥150 | ¥155 | +¥5 |
EURO | ¥174 | ¥180 | +¥6 |
CAN$ | ¥109 | ¥110 | +¥1 |
Let's move on to the consolidated forecast.
We are targeting revenue of 5,200.0 billion yen and operating profit of 150.0 billion yen. With regard to operating profit, there is a risk of a significant increase in procurement costs due to rising raw material costs and deterioration in market conditions. Even under such circumstances, we will implement measures to recover earnings and aim
to achieve operating profit of 150.0 billion yen.
In addition, we are targeting profit before tax of 180.0 billion yen and profit for the period attributable to owners of parent of 130.0 billion yen.
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 7 F o r e c a s t ：
C o n s o l i d a t e d P r o f i t F o r e c a s t
(100 Million Yen)
18
19
https://www.subaru.co.jp/en/ir/
FYE2027
Forecast
+ 1 , 0 9 9
Decrease
in major expenses
401
FYE2026
Results
1,500
Raw material costs and market conditions
& mixture vehicle sales profit
Foreign exchange impacts
Sales volume Improvements in
+1,500
Cost innovation
Value chain profit and others
+300
-200
+400
-1,300
+100
+300
(100 Million Yen)
F Y E 2 0 2 7 F o r e c a s t ：
A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d )
This chart shows the factors behind changes in operating profit.
The second bar from the right represents the impact of deteriorating raw material costs and market conditions, which is estimated at 130.0 billion yen, assuming the current price levels continue throughout the year.
FYE 2026 Results | FYE 2027 Forecast | Variance |
Capex *1 2,102 | 1,600 | -502 |
Depreciation *1 1,036 | 1,250 | +214 |
R&D expenditures *2 1,580 | 1,450 | -130 |
Capex, depreciation, and R&D expenditures are as you see here.
Capex decreased by 50.2 billion yen year on year, compared with the previous fiscal year when investments were made for the start of Forester production at the U.S. plant and for in-house production of BEVs at the Yajima Plant.
R&D expenditures decreased by 13.0 billion yen year on year, mainly due to a review of R&D expenditures for in-house developed BEVs.
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 7 F o r e c a s t ：
C a p e x / D e p r e c i a t i o n / R & D
(100 Million Yen)
*1 Leases, capex & amortization for intangible assets are not included in the results and forecast above.
*2 Research and development activity related costs incurred during the reporting period are written.
In accordance with IFRS, as a part of research and development expenditures is recorded as an intangible asset and amortized over its estimated useful life, this amount is different from "Research and development expenses" on Consolidated Statements of Income on IFRS.
(It matches with R&D expenses in consolidated statement of income on JGAAP)
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F Y E 2 0 2 7 F o r e c a s t ：
O u t l o o k f o r g r o w t h i n v e s t m e n t s
(Development of next-gen ICE/HEV models)
Reallocate development sources to next-gen ICE/HEV models
Development
Reduce development sources due to postponement of
(Development of BEVs) the introduction of in-house developed BEVs (Continuing technological development toward the full-scale introduction of BEVs in the future)
Production Pursuit of a flexible and efficient production system
(Capital investment) leveraging mixed-model production
Further enhancement of HEV production capacity
Announced on November 10, 2025
Growth investments 1.2 trillion yen
Reallocated
(No change in investments at 1.2 trillion yen)
https://www.subaru.co.jp/en/ir/
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Next we have the outlook for growth investments.
As explained by CEO Osaki earlier, we have decided to postpone the introduction of in-house developed BEVs from the originally planned timing, and have reallocated resources for mass production development of in-house BEVs to ICE/HEV models. While there is no change in growth investments of 1.2 trillion yen announced on November 10 last year, we plan to flexibly reallocate investment areas and execute accordingly.
FYE2026 | FYE2027 |
Forecast | |
57.0 | 58.0 |
58.5 | 58.0 |
115.5 | 116.0 |
3.5% | |
Up to 150 billion yen | TBD |
S h a r e h o l d e r R e t u r n s
(Yen)
FYE2025
Results
FYE2026
Previous Forecast
Interim Dividend
Year-end Dividend Annual Dividend
48.0
67.0
115.0
57.0
58.0
115.0
Dividend on Equity* 3.5%
Share Repurchases 50 billion yen TBD
* Excluding "other components of equity" that are subject to significant fluctuations due to foreign exchange movements and other factors
Dividend on Equity (DOE) = annual dividends / (Equity attributable to owners of parent - other components of equity)
Shares Repurchases
Shares Repurchases amount
Up to 150 billion yen
* All of shares repurchased will be cancelled.
https://www.subaru.co.jp/en/ir/
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Planned Repurchases period May 18, 2026 - March 16, 2027
Shares Repurchases number Up to 80 million shares
Let me explain our approach to shareholder returns.
We set dividends as the basis for shareholder returns and aim for progressive dividends at 3.5% DOE*2
For FYE 2026, the year-end dividend will be increased by JPY0.5 from the previous forecast to JPY58.50 per share,
and the annual dividend is expected to be ¥115.50 per share, including the interim dividend.
In addition, as our CEO, Osaki, mentioned earlier,
the Board of Directors resolved today to conduct a share buyback of up to ¥150.0 billion.
All shares acquired will be cancelled.
As for FYE2027, the forecast for the dividend per share is an annual dividend of JPY116.00, based on a DOE of 3.5%.
F i n a n c i a l a n d C a p i t a l P o l i c y |
Balanced capital allocation among "Financial Soundness and Stability," "Growth Investments," and "Shareholder Returns" Financial Soundness and Stability Review of Growth Investments Aiming for medium- to long-term capital efficiency, under highly Remaining JPY 1.2 trillion of the total growth investment of JPY 1.5 uncertain business environment: trillion:
*1 Cash and cash equivalents, including time deposits, less interest-bearing debt *2 Excluding "other components of equity" that are subject to significant fluctuations due to foreign exchange movements and other factors Dividend on Equity (DOE) = annual dividends / (Equity attributable to owners of parent - other components of equity) |
https://www.subaru.co.jp/en/ir/ 23 |
Finally let me explain our capital policy.
There has been no change to our approach of maintaining a balanced capital allocation among "Financial Soundness and Stability," "Growth Investments," and "Shareholder Returns," as previously stated, while continuing to aim for medium- to long-term capital efficiency.
With regard to "Financial Soundness and Stability,"
we set an upper guideline for cash holdings at net cash equivalent to 2.5 months of revenue and will manage cash holdings within this range.
Even under highly uncertain business environment, we will maintain a sound financial base for healthy growth while preventing excessive accumulation of cash.
Regarding "Growth Investments," this remains as described earlier.
Finally, turning to shareholder returns, we are making a partial revision to our shareholder return policy.
However, there has been no change to our long-standing approach of setting dividends as the basis for shareholder returns and aiming for progressive dividends based on a DOE of 3.5%.
With the aim of improving capital efficiency over the medium to long term, and taking into account the cash control framework described earlier,
we will continue to actively return value to shareholders by pursuing dividend increases and agile share repurchases in line with business performance and market conditions.
This concludes the briefing on our financial results for FYE 2026. Thank you.
Appendix
https://www.subaru.co.jp/en/ir/ 24 |
FYE 2025 Results | FYE 2026 Results | Variance | FYE 2025 Results | FYE 2026 Results | Variance | |
Automobile | 45,690 | 46,383 | +693 | 4,204 | 321 | -3,883 |
Aerospace | 1,116 | 1,417 | +301 | -196 | 35 | +231 |
Other | 51 | 50 | -2 | 37 | 36 | -1 |
Elimination & Corporate | - | - | - | 9 | 9 | +1 |
Total | 46,858 | 47,850 | +992 | 4,053 | 401 | -3,652 |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 ：
R e v e n u e a n d O p e r a t i n g P r o f i t b y B u s i n e s s S e g m e n t ( C o n s o l i d a t e d )
(100 Million Yen)
Revenue
Operating profit
25
FYE 2025 Results | FYE 2026 Results | Variance |
New vehicle 2,388 | -1,482 | -3,870 |
Parts and accessories 1,544 | 1,503 | -41 |
Others* 272 | 300 | +28 |
Total 4,204 | 321 | -3,883 |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 ：
O p e r a t i n g P r o f i t o f A u t o m o t i v e b u s i n e s s u n i t （ M a n a g e m e n t F i g u r e s ）
(100 Million Yen)
* "Others" includes profit from Sales Finance, Connected Services, Used Vehicle Sales, and Maintenance.
26
FYE 2025 Results | FYE 2026 Results | Variance | FYE 2025 Results | FYE 2026 Results | Variance | |
Japan | 9,438 | 9,804 | +365 | 3,127 | -1,107 | -4,234 |
North America | 36,278 | 36,927 | +649 | 1,009 | 1,081 | +72 |
Other | 1,141 | 1,119 | -22 | 5 | 49 | +44 |
Elimination & Corporate | - | - | - | -89 | 378 | +467 |
Total | 46,858 | 47,850 | +992 | 4,053 | 401 | -3,652 |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 ：
R e v e n u e a n d O p e r a t i n g P r o f i t b y G e o g r a p h i c A r e a ( C o n s o l i d a t e d )
(100 Million Yen)
Revenue
Operating profit
27
FYE 2025 Results | FYE 2026 Results | Variance | |
North America | 37,108 | 37,805 | +697 |
Europe | 982 | 1,058 | +76 |
Asia | 367 | 253 | -114 |
Other | 1,886 | 1,735 | -152 |
Total | 40,344 | 40,851 | +507 |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 ：
O v e r s e a s R e v e n u e ( C o n s o l i d a t e d )
(100 Million Yen)
28
As of March 2025 | As of March 2026 | Variance | |
Total assets | 50,882 | 54,923 | +4,041 |
Current assets | 31,912 | 33,744 | +1,832 |
Non-current assets | 18,970 | 21,179 | +2,209 |
Total liabilities | 23,725 | 27,106 | +3,381 |
Interest bearing debts | 3,995 | 3,845 | -150 |
Total equity | 27,157 | 27,817 | +660 |
Retained earnings | 21,065 | 20,673 | -392 |
Equity attributable to owners of parent | 27,145 | 27,804 | +659 |
Ratio of equity attributable to owners of parent to total assets | 53.3% | 50.6% | -2.7% |
D/E ratio | 0.15 | 0.14 | -0.01 |
https://www.subaru.co.jp/en/ir/
C o n s o l i d a t e d S t a t e m e n t o f F i n a n c i a l P o s i t i o n
(100 Million Yen)
29
FYE 2025 Results | FYE 2026 Results | Variance | |
Domestic production* | 602 | 525 | -77 |
Domestic sales | 111 | 108 | -3 |
Passenger cars | 97 | 91 | -6 |
Minicars | 14 | 17 | +3 |
Export total | 503 | 437 | -66 |
Components for overseas production | 337 | 350 | +13 |
Total | 951 | 894 | -56 |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 ：
N o n - c o n s o l i d a t e d U n i t S a l e s
(Thousand Units)
* Production figures include Toyota GR86, excluding jointly developed BEVs with Toyota Motor Corporation.
30
SOA *1 | FYE 2025 Results | FYE 2026 Results | Variance |
Net sales | 21,994 | 22,758 | +764 |
Operating income | 279 | 563 | +284 |
Net income | 334 | 561 | +227 |
Retail sales (Thousand units) | 679 | 617 | -62 |
SIA *2 | FYE 2025 Results | FYE 2026 Results | Variance |
Net sales | 9,960 | 10,365 | +405 |
Operating income | 239 | 74 | -165 |
Net income | 239 | 114 | -125 |
Production (Thousand units) | 345 | 355 | +11 |
F Y E 2 0 2 6 ：
O p e r a t i n g R e s u l t s o f S u b s i d i a r i e s i n U . S .
（Million US$）
*1 SOA: Subaru of America, Inc. *2 SIA: Subaru of Indiana Automotive, Inc.
https://www.subaru.co.jp/en/ir/
31
FYE 2025 4Q Results | FYE 2026 4Q Results | Variance | |
Passenger cars | 25 | 21 | -5 |
Minicars | 3 | 4 | +1 |
Domestic total | 29 | 25 | -4 |
U.S. 156 | 162 | +6 | |
Canada | 18 | 15 | -3 |
Europe | 7 | 8 | +1 |
Australia | 12 | 4 | -8 |
China | 1 | 0 | -0 |
Others | 7 | 5 | -1 |
Overseas total | 200 | 195 | -5 |
Total | 229 | 220 | -9 |
https://www.subaru.co.jp/en/ir/
4 t h Q u a r t e r ( 3 m o n t h s ) ：
C o n s o l i d a t e d U n i t S a l e s ( b y m a r k e t )
(Thousand Units)
32
FYE 2025 4Q Results | FYE 2026 4Q Results | Variance | |
Revenue | 11,494 | 12,660 | +1,166 |
Domestic | 1,776 | 1,884 | +108 |
Overseas | 9,718 | 10,776 | +1,058 |
Operating profit | 362 | -262 | -623 |
Profit before tax | 225 | -115 | -340 |
Profit for the period attributable to owners of parent | 207 | 78 | -129 |
SUBARU US$ exchange rate | ¥154 | ¥156 | +¥2 |
EURO | ¥160 | ¥183 | +¥24 |
CAN$ | ¥108 | ¥114 | +¥6 |
https://www.subaru.co.jp/en/ir/
4 t h Q u a r t e r ( 3 m o n t h s ) ：
C o n s o l i d a t e d P r o f i t R e s u l t s
(100 Million Yen)
33
by sales volume -202 by price & mixture +412 | |
54 | +179 |
Changes in business environment | -286 | Manufacturing activities | -154 | Sales activities | +179 | Cost reduction efforts | +110 | Other | -473 |
Curerncy exchange * | +2 | Fixed manufacturing cost | -153 | Sales volume & mix , etc. | +210 | Cost reduction | +110 | BEV-related costs | -578 |
| +180 | R&D expenses | -1 | Sales incentives | -70 | Warranty claims | -50 | ||
exchange rate difference | |||||||||
difference | -8 -170 | Sales related cost Parts and Accessories | +34 -37 | Expenses related to environmental regulatory credits and associated losses | +77 | ||||
Material cost, etc. | -185 | Other profit related to vehicle | +42 | Others | +78 | ||||
Impact of U.S. Additional Tariffs | -103 | ||||||||
https://www.subaru.co.jp/en/ir/
4 t h Q u a r t e r ( 3 m o n t h s ) ：
A n a l y s i s o f Va r i a n c e i n O p e r a t i n g P r o f i t ( C o n s o l i d a t e d )
(100 Million Yen)
-286
+110
-473
-1
Changes in business environment
Manufacturing activities
Sales activities
Cost reduction efforts
FYE 2025
4Q Results
Other
- 6 2 3
FYE 2026
4Q Results
* "Sales-purchase exchange rate difference" and "Unrealized gain" are variance affected by exchange rate fluctuations in overseas sales.
"End-of-period exchange rate difference" is variance which arises from revaluing foreign currency-denominated provisions in yen.
34
-262
362
1Q | 2Q | 3Q | 4Q | |
Consolidated Unit Sales | 244 | 229 | 203 | 220 |
Production * | 247 | 206 | 204 | 223 |
Revenue | 12,141 | 11,716 | 11,333 | 12,660 |
Operating profit | 764 | 263 | -364 | -262 |
Profit for the period attributable to 548 | 356 | -73 | 78 | |
SUBARU exchange rate ¥146 | ¥146 | ¥152 | ¥156 | |
https://www.subaru.co.jp/en/ir/
F Y E 2 0 2 6 R e s u l t s ( b y Q u a r t e r )
(Thousand Units, 100 Million Yen)
FYE 2026
Results
owners of parent
US$
* Production figures include Toyota GR86, excluding jointly developed BEVs with Toyota Motor Corporation.
35
36
Jan- Apr-Jun Jul-Sep Oct- Jan- Apr-Jun Jul-Sep Oct- Jan- Apr-Jun Jul-Sep Oct- Jan- Apr-Jun Jul-Sep Oct- Jan- Apr-Jun Jul-Sep Oct- Jan- Apr-Jun Jul-Sep Oct- Jan-
Mar Dec Mar Dec Mar Dec Mar Dec Mar Dec Mar Dec Mar 2020 2021 2022 2023 2024 2025 2026
* Production figures include Toyota GR86, excluding jointly developed BEVs with Toyota Motor Corporation.
https://www.subaru.co.jp/en/ir/
0
50
100
150
200
250
300
Retail Sales
Production
(1,000units）
C o m p l e t e C a r s P r o d u c t i o n / R e t a i l S a l e s U n i t s
203
223
224
204
231
206
224
247
244
221
240
250
241
236
236
239
225
213
241
264
232
250
228
243
212
202
220
246
202
220
187
205
193
177
182
207
209
158
229
184
240
196
254
260
240
262
182
92
204
271
Forward-looking statements including projections and future strategies mentioned in this presentation are based on currently available information and assumptions and are subject to risks and uncertainties. Actual results may vary materially as a result of various factors including, without limitation, economic conditions, market demand and fluctuations in foreign exchange rates. Investors are asked not to rely solely on the information in this presentation when they make their final investment decisions.
https://www.subaru.co.jp/en/ir/