Yamaha Motor Cuts 2025 Profit Forecast Sharply

Mixed Signals from Yamaha's Revised Forecast

Yamaha Motor has significantly revised its financial guidance for the fiscal year ending December 2025. The company announced a substantial cut to its net profit forecast while simultaneously raising its operating profit outlook, sending mixed signals to investors.

A Closer Look at the Numbers

The company reduced its net profit forecast from ¥45 billion to just ¥16.5 billion. This sharp decrease is attributed to a ¥32.5 billion reversal of deferred tax assets. Management cited increased costs from U.S. tariffs and a changing business environment for its U.S. subsidiary as the primary causes. In contrast, the operating profit guidance was increased from ¥120 billion to ¥126 billion, while the sales forecast saw a slight reduction to ¥2.53 trillion.

Impact on Shareholders and Market

Directly impacting shareholders, Yamaha Motor also cut its dividend per share forecast from ¥50 to ¥35. The announcement, made after market hours, highlights the tangible effects of trade policies on corporate profitability. The market is expected to closely watch how these conflicting financial metrics influence the company's stock performance.

Summary

While the improved operating profit is a positive sign, the severe cut in net profit and dividends due to U.S. tariff-related costs overshadows the outlook. Investors will monitor future developments in U.S. trade relations and their continued impact on the company's bottom line.

FAQ

Q: Why did Yamaha cut its net profit forecast so drastically?
A: The cut is due to a ¥32.5 billion reversal of deferred tax assets, resulting from increased costs related to U.S. tariffs and changes in its American business environment.

Q: Did all of Yamaha's financial forecasts decrease?
A: No, the company raised its operating profit forecast from ¥120 billion to ¥126 billion for the same period.

Source: Investing.com