Isuzu (TYO:7202) posted growth in its first-quarter profit and revenue for the 2027 fiscal year despite global supply challenges from the Middle East war.
The stock, however, closed Monday's session over 4% lower as the company flagged headwinds ahead.
"With regard to market conditions in each country, we have not observed any significant downside during the first quarter. However, our view remains unchanged that there is a risk of weaker market conditions going forward," the company said in its report. "While uncertainties remain, including raw material prices, shipping conditions, and the impact on market conditions in each country, we will continue to closely monitor the situation and provide updates as appropriate."
Profit attributable to owners rose 23% to 50.9 billion yen, while earnings per share rose year on year to 74.09 yen from 58.16 yen, thanks to cost reduction activities, as well as foreign exchange tailwinds that were in the company's favor. The automobile manufacturer's revenue increased 6.8% to a first-quarter record high of 832.5 billion yen.
"Our full-year forecasts for both unit sales and earnings remain unchanged from those announced in May. At present, the situation in the Middle East remains unsettled, and uncertainty surrounding fuel prices and market conditions in various countries continues. We are maintaining our full-year outlook at this time. However, we intend to provide an updated outlook after further assessing the situation in the Middle East and market conditions in each region when we announce our second-quarter results," Isuzu said.
For the fiscal year ending March 31, 2027, the company expects attributable profit to rise 19% year on year to 160 billion yen, while revenue is projected to increase 6.4% to 3.700 trillion yen.



