Isuzu's Fiscal 2026 Profit Slides Due to Iran War Impact But Could Rebound in Fiscal 2027
Isuzu Motors (TYO:7202) recorded a lower profit in fiscal 2026 due to the effects of U.S. tariffs and higher material and foreign exchange costs.The Japanese automobile manufacturer's attributable profit slid 3.7% to 134.9 billion yen in fiscal 2026 from 140.1 billion yen in fiscal 2025, according to a Wednesday disclosure to the Tokyo Exchange.Diluted earnings per share jumped to 193.07 yen from 190.75 yen.Revenue jumped 7.5% to 3.479 trillion yen from 3.236 trillion yen a year earlier.The Japanese business' contribution jumped 8.6% year over year to 1.385 trillion yen, while that of the rest of the world grew 6.8% to 2.094 trillion yen.Revenue in its automobile segment increased 7.5% to 3.435 trillion yen, while segment profit slid 12% to 189.9 billion yen due to a rise in various expenses.The financial business segment jumped 14% to 210.8 billion yen, while sgement profit slid 4% to 13.9 billion yen, still due to higher various expenses.Vehicle sales jumped 8.1% year over year to 565,858 units, with Japanese vehicle sales rising 5.5% year over year to 81,741 units.Light commercial vehicle sales jumped 11% to 254,219, helped by higher sales in Thailand.Operating profit slid 11% year over year to 203.7 billion yen from 229.5 billion yen.Isuzu attributed the fall to the impact of U.S. tariffs, foreign exchange effects, higher material costs and growth-related expenditures, and suspension of shipments due to the war in the Middle EastFor fiscal 2027, Isuzu forecasts attributable profit to increase 19% to 160 billion yen and earnings per share at 232.82 yen. The company expects revenue to grow 6.4% to 3.700 trillion yen.The company expects operating profit to rise 13% to 260 billion yen following a negative impact of 40 billion yen from the situation in the Middle East.Isuzu expects commercial vehicle sales in its Japan market to reach 100,000 units, while light commercial vehicle sales in Thailand and other export markets to remain at the same level in fiscal 2026 due to the Middle East situation.