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Suzuki Motor Posts Record Profit in Fiscal 2025 Despite Rising Costs

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Suzuki Motor Posts Record Profit in Fiscal 2025 Despite Rising Costs

Suzuki Motor's (TYO:7269) fiscal 2025 attributable profit grew to a record high despite booking lower operating profit amid rising raw material costs, as well as human resources and technological investments.

The Japanese vehicle manufacturer logged an attributable profit of 439.3 billion yen, up 5.6% from 416.1 billion yen in fiscal 2024. The figure jumped for the sixth consecutive period, the company said.

Diluted earnings per share grew to 227.66 yen from 215.65 yen.

Suzuki Motor's revenue increased 8% to 6.293 trillion yen from 5.825 trillion yen a year earlier.

Market conditions in India influenced the topline after the country revised its goods and services tax, driving the company to adjust production and logistics in the country to cope with demand.

Revenue in the automobile segment jumped 7.6% year over year to 5.706 trillion yen, but its operating profit slipped 3.5% to 547.6 billion yen.

Its motorcycle segment grew 14% to 454.5 billion yen, while operating profit increased 9.7% to 44.8 billion yen on strong sales in India and Colombia.

Suzuki Motor's marine business grew its revenue by 8.9% to 119.5 billion yen, but its operating profit slid 13% to 26.6 billion yen due to U.S. tariff impacts.

Global automobile sales volume jumped 2.4% to 3.3 million units, with stronger sales in India, Pakistan, and Africa, while its motorcycle sales widened by 9.5% to 2.3 million units, thanks to stronger performance in India and Latin America.

Operating profit slid 3.1% year over year to 622.9 billion yen from 642.9 billion yen on investments in human resources and technology.

For fiscal 2027, the company expects attributable profit to fall 14% to 380 billion yen or 196.67 yen per share, as it expects the war in the Middle East to bear "significant risk" on its production.

Revenue is predicted to grow 8.1% to 6.800 trillion yen, but operating profit could slide 8.5% to 570 billion yen.

The company plans to pay a year-end dividend of 24 yen per share, with the total dividend for fiscal 2025 reaching 46 yen.

For fiscal 2026, Suzuki Motor plans to pay a dividend of 51 yen per share.

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