Financial Performance and Profitability
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Fiscal Year 2025 Consolidated Revenue: ¥4,685.8 billion (~$33.5 billion USD), down 0.4% year-over-year
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Operating Profit: ¥405.3 billion (~$2.9 billion USD), down 13.4% year-over-year
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Profit Before Tax: ¥448.5 billion (~$3.2 billion USD), down 15.8% year-over-year
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Profit Attributable to Owners: ¥338.1 billion (~$2.4 billion USD), down 12.2% year-over-year
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Positive contributions from new model launches, pricing initiatives, and favorable exchange rates were offset by increased sales incentives and lower sales volume overseas
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Forecast for Fiscal Year 2026: Earnings forecast undetermined due to uncertainty around U.S. tariff policies and construction impact at Yajima Plant for EV production preparations
Vehicle Sales and Production
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Global consolidated unit sales declined by 4.1% to 936,000 units
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Consolidated unit sales in Japan increased by 5.4% to 104,000 units, led by strong demand for Forester, Outback, and next-generation hybrid Crosstrek
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Overseas consolidated unit sales fell by 5.2% to 832,000 units, reflecting adjusted shipment volumes in line with sales trends and inventory adjustments
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Production in Japan was 602,000 units, stable year-over-year
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Overseas production decreased by 6.3% to 345,000 units
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New model launches and electrified vehicles contribute to competitive positioning
Regional and Global Sales Performance
| Region | Highlights |
|---|---|
| Japan | Sales increased 5.4%; strong demand for key models |
| U.S. Market | Retail sales growth for 32 consecutive months through March 2025 |
| Overseas Markets | Sales declined 5.2%, impacted by shipment adjustments and inventory management |
| Global Production | Slight overall volume decline (-2.4%) with stable domestic production and reduced overseas manufacturing |
Profitability and Cost Factors
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Operating profit and pre-tax profit declined due to competitive overseas environments requiring higher sales incentives
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Favorable currency exchange rates helped offset some cost pressures
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Continued investment in electrification and new technology development
Debt and Liquidity
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No detailed debt and liquidity data disclosed in the fiscal year 2025 report
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The company is preparing for in-house battery electric vehicle (BEV) production at Yajima Plant, expecting some impact on operations
Best Selling Models: Overview and Highlights
| Model | Highlights |
|---|---|
| Forester | Steady demand and strong sales domestically |
| Outback | Popular in U.S. and Japanese markets |
| Crosstrek (Hybrid) | Next-generation hybrid model gaining market traction |
| Legacy and Impreza | Continued support from loyal customer base |
Weakest Performers and Segment Challenges
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Overseas wholesale shipment volume adjusted downward due to competitive market conditions and inventory corrections
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Increased sales incentives eroded profitability in overseas markets
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Uncertainty over U.S. tariff policies poses near-term risk
Key Financial and Operational Metrics
| Metric | FY 2025 Value | Notes |
|---|---|---|
| Consolidated Revenue | ¥4,685.8 billion (~$33.5B USD) | Slight decline (-0.4%) |
| Operating Profit | ¥405.3 billion (~$2.9B USD) | Down 13.4% YoY |
| Profit Before Tax | ¥448.5 billion (~$3.2B USD) | Down 15.8% YoY |
| Net Profit Attributable | ¥338.1 billion (~$2.4B USD) | Down 12.2% YoY |
| Global Unit Sales | 936,000 units | Down 4.1% YoY |
| Domestic Unit Sales (Japan) | 104,000 units | Up 5.4% YoY |
Industry Outlook and Strategic Focus
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Preparing for in-house BEV production amid ongoing U.S. tariff uncertainties and model lineup updates
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Expect continued investment in electrification, including hybrid and EV models to sustain competitiveness
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Focus on balancing global shipment volumes with market demand and inventory optimization
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Addressing competitive pressures overseas with pricing and incentive strategies
Summary
Subaru Corporation’s fiscal year 2025 showed a small decrease in consolidated revenue and declines in profitability due to competitive overseas market pressures and increased sales incentives. However, retail sales momentum in its key U.S. market remained strong, and domestic sales in Japan grew. With ongoing new model launches and preparations for BEV production, the company aims to navigate tariff uncertainties and continue electrification efforts to maintain market presence and profitability in 2026.
Sources
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Subaru Corporation Consolidated Financial Results FYE March 31, 2025subaru
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Market commentary and financial news on Subaru Q4/FY2025 performancemarklines+1
