Mazda Fiscal Year March 2026 First Quarter Financial Results
Date: August 5, 2025
Presented by: Mazda Motor Corporation
Today's Presentation Outline
- Financial Summary
- Fiscal Year March 2026 First Quarter Performance
- Fiscal Year March 2026 Full Year Outlook
- Summary
Financial Summary
This section provides an overview of Mazda's financial performance.
Fiscal Year March 2026 First Quarter Performance
Key Objectives for the Period
- Prioritize maintaining the supply chain amidst a challenging business environment and sustain sales volume.
- Continuously strengthen business resilience and efficiency, aiming for a turnaround from the second quarter.
- Target operating profit of 50 billion yen, net profit of 20 billion yen, and positive cash flow.
Key Initiatives for the Period
- Global sales volume to be maintained at the previous year's level by offsetting a decrease in US sales with other markets.
- Successful launch of the new CX-5 and transformation of domestic business structure.
- Continue to suppress US sales incentives while closely monitoring the competitive environment for further pricing actions.
- In addition to tariff response measures, aim for cost reductions of 80 billion yen (40 billion yen in variable costs, 40 billion yen in fixed costs). This aims to offset over 60% of the additional tariff impact of approximately 230 billion yen.
Sales Volume Performance (First Quarter)
| FY2025 Q1 (Thousand Units) | FY2026 Q1 (Thousand Units) | Year-on-Year Change (Q1) | |
|---|---|---|---|
| Production Volume* | 300 | 276 | -24 (-8%) |
| Global Sales Volume | |||
| Japan | 29 | 32 | +3 (+11%) |
| North America | 146 | 147 | +1 (+1%) |
| Europe | 49 | 39 | -10 (-21%) |
| China | 18 | 18 | -0 (-2%) |
| Other Markets | 67 | 65 | -2 (-3%) |
| Total | 309 | 301 | -9 (-3%) |
| United States | 102 | 100 | -2 (-2%) |
| Australia | 25 | 24 | -1 (-4%) |
*Based on monthly disclosures (Global production volume including China / excludes OEM supplied vehicles)
Financial Indicators (First Quarter)
| FY2025 Q1 (Billion Yen) | FY2026 Q1 (Billion Yen) | Year-on-Year Change (Q1) | |
|---|---|---|---|
| Consolidated Unit Shipments (Thousand Units) | 291 | 266 | -25 (-9%) |
| Net Sales | 12,056 | 10,998 | -1,058 (-9%) |
| Operating Income | 504 | -461 | -965 |
| Ordinary Income | 803 | -343 | -1,146 |
| Profit Attributable to Owners of Parent | 498 | -421 | -919 |
| Operating Income Margin | 4.2% | -4.2% | -8.4 pts |
| EPS (Yen) | 79.1 | -66.8 | -145.9 |
Exchange Rates (Yen)
| Currency | FY2025 Q1 | FY2026 Q1 | Change |
|---|---|---|---|
| US Dollar | 156 | 145 | -11 |
| Euro | 168 | 164 | -4 |
| Thai Baht | 4.25 | 4.37 | +0.12 |
| Mexican Peso | 9.06 | 7.42 | -1.64 |
Factors Affecting Operating Income Change (Year-on-Year Comparison)
Mazda's operating income decreased by 965 billion yen year-on-year in the first quarter.
- Tariff Impact: +70 billion yen (based on previous period's unit sales)
- Tariff Response: +201 billion yen
- Unit Volume & Mix: -131 billion yen
- Foreign Exchange: -268 billion yen
- Raw Materials & Logistics Costs: -36 billion yen
- Cost Improvements: +43 billion yen
- Fixed Costs, etc.: -77 billion yen
Breakdown of Changes:
| Category | Amount (Billion Yen) |
|---|---|
| Unit Volume & Mix | -131 |
| - Unit Volume/Price | -101 |
| - Sales Incentives | +16 |
| - Other | -46 |
| Foreign Exchange | -268 |
| - USD | -59 |
| - EUR | -15 |
| - AUD | -57 |
| - THB | -9 |
| - MXN | -45 |
| - Other | -83 |
| Raw Materials & Logistics Costs | -268 |
| - Raw Materials | -38 |
| - Logistics Costs | +2 |
| Cost Improvements | +43 |
| - Base CI | +43 |
| - Structural Cost Reduction | +150 |
| Fixed Costs, etc. | -77 |
| - R&D Expenses | -100 |
| - Depreciation & Amortization | 0 |
| - Quality Related Costs | 0 |
| - Advertising & Sales Promotion | 0 |
| - Other | +23 |
Total tariff burden for the current period: -496 billion yen.
Year-on-year change: -965 billion yen.
Fiscal Year March 2026 Full Year Outlook
Full Year Sales Volume Outlook (Thousand Units)
| FY2025 Full Year (Thousand Units) | FY2026 Full Year (Thousand Units) | Year-on-Year Change (Full Year) | |
|---|---|---|---|
| Global Sales Volume | |||
| Japan | 152 | 161 | +9 (+6%) |
| North America | 617 | 595 | -22 (-4%) |
| Europe | 174 | 177 | +3 (+2%) |
| China | 74 | 76 | +2 (+2%) |
| Other Markets | 285 | 291 | +5 (+2%) |
| Total | 1,303 | 1,300 | -3 (0%) |
| United States | 435 | 400 | -35 (-8%) |
| Australia | 97 | 98 | +1 (+1%) |
Full Year Financial Indicators (Billion Yen)
| FY2025 Full Year (Billion Yen) | FY2026 Full Year (Billion Yen) | Year-on-Year Change (Full Year) | |
|---|---|---|---|
| Consolidated Unit Shipments (Thousand Units) | 1,219 | 1,192 | -26 (-2%) |
| Net Sales | 50,189 | 49,000 | -1,189 (-2%) |
| Operating Income | 1,861 | 500 | -1,361 (-73%) |
| Ordinary Income | 1,890 | 530 | -1,360 (-72%) |
| Profit Attributable to Owners of Parent | 1,141 | 200 | -941 (-82%) |
| Operating Income Margin | 3.7% | 1.0% | -2.7 pts |
| EPS (Yen) | 181.0 | 31.7 | -149.3 |
Exchange Rates (Mid-term Average)
| Currency | FY2025 Full Year | FY2026 Full Year | Year-on-Year Change (Full Year) |
|---|---|---|---|
| US Dollar | 153 | 145 | -8 |
| Euro | 164 | 169 | +5 |
| Canadian Dollar | 110 | 106 | -4 |
| Australian Dollar | 100 | 94 | -5 |
| Pound Sterling | 195 | 197 | +2 |
| Thai Baht | 4.38 | 4.37 | -0.01 |
| Mexican Peso | 8.02 | 7.64 | -0.38 |
Factors Affecting Operating Income Change (Year-on-Year Comparison)
Mazda's operating income is projected to decrease by 1,361 billion yen year-on-year.
- [Tariff Offset]:
- Tariff Response including Unit Volume & Mix: +608 billion yen
- Cost Improvements: +400 billion yen
- Fixed Costs, etc.: +400 billion yen
- Total: +1,408 billion yen (equivalent to 60% of the 2,333 billion yen tariff impact)
Breakdown of Changes:
| Category | Amount (Billion Yen) |
|---|---|
| Unit Volume & Mix | -273 |
| - Unit Volume/Price | -129 |
| - Sales Incentives | 0 |
| - Other | -144 |
| Foreign Exchange | -186 |
| - USD | -154 |
| - EUR | -122 |
| - AUD | -4 |
| - THB | -31 |
| - MXN | -41 |
| Raw Materials & Logistics Costs | -250 |
| - Raw Materials | -275 |
| - Logistics Costs | +25 |
| Cost Improvements | +400 |
| - Base CI | +250 |
| - Structural Cost Reduction | +150 |
| Fixed Costs, etc. | +400 |
| - R&D Expenses | +80 |
| - Depreciation & Amortization | -24 |
| - Quality Related Costs | +51 |
| - Advertising & Sales Promotion | +67 |
| - Other | +226 |
Current period tariff burden: -1,452 billion yen.
Year-on-year change: -1,361 billion yen.
Summary
First Quarter Performance
- Despite the impact of additional tariffs, global sales remained robust.
- In a highly uncertain environment, Mazda focused on maximizing profitability and optimizing inventory, preparing for a turnaround.
Full Year Outlook
- Accelerate structural reforms without compromise.
- From the second quarter onwards, efforts in sales optimization, including destination and specification mix, along with cost improvement effects, will offset approximately 60% of the tariff impact of around 230 billion yen, leading to a profit turnaround.
- Targeting sales volume at the previous year's level globally, operating profit of 50 billion yen, and a positive net profit.
Strategic Execution and Future Initiatives
- Accelerate structural reforms with flexible and agile strategy execution.
- Amidst changing electrification timelines, maximize the utilization of the "BEV as a willing follower" strategy and the light-asset strategy.
- Establish a dedicated company-wide AI utilization organization to double operational speed and dramatically improve productivity.
Dividends
- The interim dividend for FY2026 is 25 yen, the same as the previous year.
- While aiming for an annual dividend similar to the previous year, the year-end dividend is undecided. Mazda will announce it at an appropriate time after assessing the progress of the current fiscal year.
Appendix
This presentation contains forward-looking statements regarding Mazda's outlook and future strategies. These statements are subject to various uncertainties, including global economic conditions, industry trends, and foreign exchange fluctuations. Actual results may differ materially from these projections. Investors are advised to make investment decisions based on their own judgment, considering the information presented herein. Mazda and its information providers shall not be liable for any damages incurred as a result of investments made based on this information.
