Volume and mix beat a raw-material headwind
Suzuki Motor Corporation (TSE: 7269) published consolidated results for the three months to June 30, 2026 on August 5, 2026 under IFRS. Revenue rose 22.0% to ¥1,705,769 million, an increase of ¥308.0 billion, reversing a 4.1% decline a year earlier. The company credits currency effects, higher unit sales, an improved sales mix and cost reduction — its earning-power improvement programme — against a headwind from raw-material prices driven higher by the situation in the Middle East.
Operating profit rose 11.2% to ¥158,010 million, an increase of ¥15.9 billion. Because revenue grew twice as fast, the operating margin narrowed from 10.2% to 9.3%. Below the operating line, valuation gains on financial assets did the heavy lifting: profit before tax rose 61.2% to ¥283,201 million and profit attributable to owners of the parent 80.0% to ¥183,607 million, for earnings per share of ¥95.17 against ¥52.88. Comprehensive income more than tripled, to ¥239,206 million.
India and Pakistan drove the automobile business
The automobile segment lifted revenue 22.6% to ¥1,541.7 billion and operating profit 12.5% to ¥134.3 billion. Suzuki points to India, where volumes have run strongly since last year's GST revision, and to Pakistan, where demand is robust.
Motorcycles grew revenue 18.7% to ¥124.4 billion and operating profit 13.1% to ¥14.4 billion, with India and Latin America solid and European volumes above the year-earlier level. The marine business grew revenue 15.6% to ¥36.8 billion but saw operating profit fall 6.8% to ¥8.5 billion — the only segment down on profit. Other businesses contributed ¥2.8 billion of revenue and ¥0.7 billion of operating profit, both slightly below the year-earlier level.
Guidance revised, but still points lower on profit
Suzuki revised its FY3/2027 forecast from the figure previously announced. It now guides to revenue of ¥6,900,000 million (+9.6%), operating profit of ¥540,000 million (−13.3%), profit before tax of ¥720,000 million (−1.5%) and profit attributable to owners of the parent of ¥420,000 million (−4.4%), for earnings per share of ¥217.69.
The shape of that guidance is worth noting against the quarter just reported: revenue is expected to keep growing, but full-year operating profit is still guided below the prior year, implying that the cost pressures Suzuki absorbed this quarter are expected to weigh more heavily over the remaining nine months. The annual dividend forecast rises to ¥51.00 per share from ¥46.00, split ¥25.00 interim and ¥26.00 year-end.
Balance sheet
Total assets rose 2.4% from the March year-end to ¥6,798,353 million and total equity 4.4% to ¥4,337,108 million. Equity attributable to owners of the parent reached ¥3,539,267 million, taking the ratio to 52.1% from 51.0% — one of the stronger balance sheets among Japan's listed automakers.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | Change |
|---|---|---|---|
| Revenue (¥ million) | 1,705,769 | 1,397,770 | +22.0% |
| Operating profit (¥ million) | 158,010 | 142,136 | +11.2% |
| Operating margin | 9.3% | 10.2% | −0.9 pt |
| Pre-tax profit (¥ million) | 283,201 | 175,727 | +61.2% |
| Net profit attrib. to owners of parent (¥ million) | 183,607 | 102,025 | +80.0% |
| Comprehensive income (¥ million) | 239,206 | 74,740 | +220.0% |
| EPS (¥) | 95.17 | 52.88 | +80.0% |
| Automobile — revenue (¥ million) | 1,541,700 | 1,257,800 | +22.6% |
| Automobile — segment profit (¥ million) | 134,300 | 119,400 | +12.5% |
| Motorcycle — revenue (¥ million) | 124,400 | 104,800 | +18.7% |
| Motorcycle — segment profit (¥ million) | 14,400 | 12,700 | +13.1% |
| Marine — revenue (¥ million) | 36,800 | 31,800 | +15.6% |
| Marine — segment profit (¥ million) | 8,500 | 9,100 | −6.8% |
| Total assets (¥ million) | 6,798,353 | 6,636,815 | +2.4% |
| Equity attrib. to owners of parent (¥ million) | 3,539,267 | 3,382,083 | +4.6% |
| Equity ratio | 52.1% | 51.0% | +1.1 pt |
| FY3/2027 guidance — revenue (¥ million) | 6,900,000 | — | +9.6% |
| FY3/2027 guidance — operating profit (¥ million) | 540,000 | — | −13.3% |
| FY3/2027 guidance — pre-tax profit (¥ million) | 720,000 | — | −1.5% |
| FY3/2027 guidance — net profit (¥ million) | 420,000 | — | −4.4% |
| FY3/2027 guidance — EPS (¥) | 217.69 | — | n.m. |
| Annual dividend per share (¥) | 51.00 | 46.00 | +10.9% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.