Yamaha Corporation: FY2026 First Quarter Earnings Presentation
Date: August 1, 2025
Key Financial Highlights
This section summarizes the key financial points for the first quarter of FY2026.
Financial Summary (Q1 FY2026)
| Item | 25/3 1Q (JPY Billion) | 26/3 1Q (JPY Billion) | Change (%) |
|---|---|---|---|
| Net Sales | 1,121 | 1,039 | △7.4% |
| Operating Income (Profit Margin) | 92 (8.2%) | 47 (4.5%) | △49.2% |
| Profit Attributable to Owners of Parent | 94 | 24 | △74.7% |
Note: The impact of currency fluctuations, excluding which, net sales decreased by 2.8%.
Full-Year Business Forecast (FY2026)
The full-year forecast has been revised downwards to incorporate the impact of anticipated U.S. tariffs and mitigation measures.
| Item | 25/3 (JPY Billion) | 26/3 Forecast (JPY Billion) | Change (%) |
|---|---|---|---|
| Net Sales | 4,621 | 4,520 | △2.2% |
| Operating Income (Profit Margin) | 367 (7.9%) | 320 (7.1%) | △12.9% |
| Profit Attributable to Owners of Parent | 134 | 225 | +68.5% |
Note: The forecast assumes a +1.2% impact from currency fluctuations.
Factors Affecting Operating Income Change (Q1 FY2026 vs. Previous Year)
The decrease in operating income is attributed to factors including currency impact, cost increases, and a decline in sales and production, partially offset by cost reductions and structural reforms.
- Currency Impact: △11 billion
- Cost Increases: △3 billion
- Tariff Impact: △18 billion
- Sales/Production Decline & Model Mix: △27 billion (includes tariff mitigation efforts)
- Structural Reforms (Piano): +6 billion
- Other Factors (e.g., SG&A control): +47 billion (Net result)
The decline in sales is primarily due to a slowdown in musical instruments, particularly pianos, and a decrease in professional audio equipment sales, impacting the overall model mix.
Business Segment Performance
Musical Instruments Segment
| Item | 25/3 1Q (JPY Billion) | 26/3 1Q (JPY Billion) | Change (%) | Profit Margin (%) |
|---|---|---|---|---|
| Net Sales | 714 | 665 | △6.8% | - |
| Operating Income | 42 | 21 | △50.0% | 3.1% |
Q1 Performance: Continued growth in guitars, but piano performance remained weak, leading to a sales decline. Digital pianos showed recovery, but North American sales were impacted by tariffs. Wind and string instruments, along with guitars, performed well.
Full-Year Outlook: Sales are expected to increase, driven by recovery in markets outside China, despite a downward revision for North America due to tariffs. Pianos are expected to decline in the US and China, while electronic instruments are projected to grow in Europe and other regions.
Audio Equipment Segment
| Item | 25/3 1Q (JPY Billion) | 26/3 1Q (JPY Billion) | Change (%) | Profit Margin (%) |
|---|---|---|---|---|
| Net Sales | 365 | 330 | △9.6% | - |
| Operating Income | 47 | 23 | △51.1% | 7.0% |
Q1 Performance: Growth in professional audio equipment, but a slowdown in mobility audio (formerly automotive). Consumer audio saw a contraction due to the scaling back of home audio operations.
Full-Year Outlook: A moderation in growth for professional audio equipment and a decline in automotive audio sales in China are anticipated, leading to a temporary decrease in sales.
Other Businesses Segment
| Item | 25/3 1Q (JPY Billion) | 26/3 1Q (JPY Billion) | Change (%) | Profit Margin (%) |
|---|---|---|---|---|
| Net Sales | 42 | 44 | +4.8% | - |
| Operating Income | 4 | 3 | △25.0% | 6.5% |
Q1 Performance: Increase in sales for automotive interior parts and FA equipment.
Full-Year Outlook: Expected recovery in automotive interior parts and FA equipment is projected to drive sales growth.
Key Topics
Strengthening the Business Foundation
- Launch of new products emphasizing technology and sensibility, including electronic pianos, electronic drums, enterprise routers, and condenser microphones.
- Initiation of DX and productivity improvement collaborations through Yamaha Music Innovations, a Silicon Valley-based entity.
Challenging to Create the Future
- Expansion of the "Omotenashi Guide for Biz" for universal design of language and sound, adopted for the Osaka-Kansai Expo and trial use by JR East.
- Advancement of new music experiences through collaborations with other companies and external resources, including the GPAP over MoQ demonstration experiment and virtual production technology.
Sustainability as a Source of Value
- Initiation of a public-private partnership with the Ministry of Education, Culture, Sports, Science and Technology (MEXT) and the Japan International Cooperation Agency (JICA) to promote music education in the Philippines.
Governance
Introduction of a new governance structure with board committees chaired by outside directors, and the discontinuation of mutual secondment with Yamaha Motor Co., Ltd.
Financial Data
Balance Sheet Summary (as of end of Q1 FY2026)
| Item | 25/3 End (JPY Billion) | 25/6 End (JPY Billion) | Change (JPY Billion) | 26/3 Forecast (JPY Billion) |
|---|---|---|---|---|
| Cash and Cash Equivalents | 998 | 1,032 | 33 | 960 |
| Trade Receivables, etc. | 873 | 776 | △98 | 845 |
| Inventories | 1,505 | 1,520 | 15 | 1,420 |
| Total Assets | 5,913 | 5,824 | △89 | 5,740 |
| Total Liabilities | 1,067 | 1,023 | △44 | 933 |
| Total Equity | 4,501 | 4,456 | △45 | 4,462 |
| Total Liabilities and Equity | 5,913 | 5,824 | △89 | 5,740 |
ROE, ROIC, and Shareholder Returns
- ROE: Forecasted at 5.0%, below the cost of equity (6.9%). Efforts are underway to improve profitability and achieve ROE exceeding the cost of equity.
- ROIC: Forecasted at 4.9%, with a WACC of 6.6%.
- Shareholder Returns: Annual dividend per share projected at 26 JPY, an increase from the previous year.
- Policy-Invested Stocks: Ratio to total equity is 9.7%, slightly below the 10% target.
Capital Investment and R&D Expenses
Capital Investment / Depreciation
| Category | 25/3 1Q (JPY Billion) | 26/3 1Q (JPY Billion) | 25/3 Full Year (JPY Billion) | 26/3 Full Year Forecast (JPY Billion) |
|---|---|---|---|---|
| Instruments | 33 | 37 | 146 | 140 |
| Audio Equipment | 8 | 25 | 143 | 145 |
| Other | 41 | 41 | 200 | 150 |
| Depreciation | 1 | 1 | 10 | 10 |
R&D Expenses
| Category | 25/3 1Q (JPY Billion) | 26/3 1Q (JPY Billion) | 25/3 Full Year (JPY Billion) | 26/3 Full Year Forecast (JPY Billion) |
|---|---|---|---|---|
| Instruments | 28 | 29 | 118 | 120 |
| Audio Equipment | 34 | 34 | 140 | 145 |
| Other | 4 | 3 | 12 | 10 |
