Consolidated Business Results Summary- First Half of Fiscal Year Ending December 31, 2025 -
August 5, 2025
IWATA, August 5, 2025 - Yamaha Motor Co., Ltd. (Tokyo: 7272) announces its consolidated business results for the first half of fiscal 2025.
From SHITARA, Motofumi
President, Chief Executive Officer and Representative Director
With the business results for the first half of fiscal year 2025, we experienced a decline in both revenue and profits due to lower unit sales of our motorcycles, personal watercraft, and golf cars, increases in R&D expenses, labor costs as well as other selling, general and administrative (SG&A) expenses. Although there were decreases in unit sales due to the deteriorating market conditions, we experienced share increases in some main markets for our core businesses like motorcycles and marine products that increased our market presence.
Regarding the forecast consolidated business results for the fiscal year ending December 31, 2025, based on factors like increased trade tariffs being imposed by the United States and increases in R&D expenses, we have made downward adjustments in our forecasts for revenue and various other profits.
In order to achieve our targets for the period, we are working throughout the Company to implement thorough cost controls, continuing to select areas for action and concentration, and rapid efforts to improve our profit structure as quickly as possible.
Our medium- to long-term focus will be on evolving to become a robust company, with the aim of maximizing our corporate value.
Consolidated Business Results
Revenues for the period were 1,277.8 billion yen (a decrease of 70.6 billion yen or 5.2% compared with the same period of the previous fiscal year), operating income was 84.1 billion yen (a decrease of 70.0 billion yen or 45.4%), and net income attributable to owners of parent was 53.1 billion (a decrease of 59.8 billion yen or 52.9%).
For the first half-year consolidated accounting period, the U.S. dollar traded at 148 yen (an increase of 4 yen from the same period of the previous fiscal year) and the euro at 162 yen (an increase of 3 yen).
Declining unit sales in motorcycles, personal watercraft, and golf cars led to lower revenues. For operating income, the decrease in unit sales and higher R&D expenses in the core motorcycle and Marine Product businesses, as well as an increase in labor costs and other SG&A expenses brought revenue down.
Results by Business Segment
Land Mobility Business
Revenues were 808.2 billion yen (a decrease of 35.7 billion yen or 4.2% compared with the same period of the previous fiscal year) and operating income was 59.4 billion yen (a decrease of 38.0 billion yen or 39.0%).
For the motorcycle business, unit sales in developed markets fell below last year's figures due to declining demand in Europe and U.S., but increased sales in Japan brought revenue close to last year's level. As for emerging markets, unit sales decreased overall compared to last year due to production and shipment suspensions in Vietnam in the first quarter as well as decreased unit sales in India and Brazil. Due to these developments, unit sales for the business overall were lower than last year and revenue decreased. As for operating income, the decline in marginal profit ratio due to the lower unit sales and higher procurement costs, along with increased SG&A expenses such as R&D expenses and labor cost, etc., resulted in reduced profits.
For the Smart Power Vehicles business, i.e., electrically power-assisted bicycles (eBikes), their drive units (e-Kits), and electric wheelchairs, unit sales increased compared to the previous year, but due to the change in the model mix, revenue remained about the same year on year. However, due to the decrease in SG&A expenses, the operating loss was small.
Marine Products Business
Revenues were 280.0 billion yen (a decrease of 17.7 billion yen or 5.9% compared with the same period of the previous fiscal year) and operating income was 38.9 billion yen (a decrease of 14.0 billion yen or 26.5%).
Demand for outboard motors in the Company's main market of the U.S. was lower. However, overall unit sales were on par with the previous year due to a rush of demand prior to the implementation of price changes in the U.S., primarily for small and midrange outboard models. Regarding personal watercraft, there was a decrease in demand in the main market of the U.S., which resulted in a year-on-year decrease in unit sales. As a result, the Marine Products business as a whole took in lower revenue. As for operating income, the lower unit sales of personal watercraft and higher procurement expenses, along with an increase in R&D expenses and an increase in labor costs and other SG&A expenses led to a decrease in profits.
Outdoor Land Vehicle Business
Revenues were 77.7 billion yen (a decrease of 17.0 billion yen or 18.0% compared with the same period of the previous fiscal year) with an operating loss of 13.7 billion yen (a year-on-year operating loss of 800 million yen).
With recreational vehicles (all-terrain vehicles and ROVs), market demand was on par with last year's numbers. Despite the consistently strong unit sales of all-terrain vehicles, due to a decrease in ROV sales, the business ended up with reduced revenue and profits overall.
In the Low-Speed Mobility business (golfs cars, etc.), there was an overall decrease in market demand. Unit sales also declined, especially in the main market of the U.S., and as a result of increases in selling cost and SG&A expenses, etc., there was a drop in both revenues and profits.
Robotics Business
Revenues were 50.2 billion yen (an increase of 4.3 billion yen or 9.5% compared with the same period of the previous fiscal year) with an operating loss of 2.6 billion yen (down from an operating loss of 4.0 billion yen).
As for unit sales of surface mounters, demand increased in the principal market of China, which drove up demand in other Asian markets as well, but demand decreased in the developed markets such as Europe, North America, and Japan, which led to a decrease overall year on year. Also, there was a decrease in unit sales of industrial robots, primarily in developed markets. On the other hand, demand for generative AI applications and advanced packaging continued to grow, thus yielding higher sales of Yamaha semiconductor back-end process manufacturing equipment.
As a result of these developments, the Robotics business as a whole had an increase in revenue and a reduction in operating losses compared to last year.
Financial Services Business
Revenues were 53.9 billion yen (a decrease of 2.0 billion yen or 3.6% compared with the same period of the previous fiscal year) and operating income was 8.1 billion yen (a decrease of 2.7 billion yen or 25.3%).
Despite the increase in financial receivables based in foreign currencies, the effects of the strong yen resulted in a decrease in revenues.
As for operating income, the appraised gains derived from interest rate swaps during the last fiscal year were converted to appraisal losses this fiscal year, resulting in lower profits for the period.
Other Products Business
Revenues were 7.9 billion yen (a decrease of 2.5 billion yen or 23.8% compared with the same period of the previous fiscal year) with an operating loss of 6.0 billion yen (a year-on-year operating loss of 2.3 billion yen).
Forecast of Consolidated Business Results
Regarding the consolidated business results for the first half of the fiscal year ending December 31, 2025, the Company's motorcycle business experienced a temporary suspension of production and shipments in Vietnam in the first quarter and India recorded lower unit sales in the first half of the year. Also, in the Marine Products business, demand in the major market of the U.S. was lower than predicted. As a result, both revenue and operating income fell below expectations.
As for the Company's forecast of consolidated business results for the full fiscal year, further declines in revenues and profits are projected not only due to the lower sales factors outlined above but also due to the impact on demand from higher automobile taxes in Indonesia and increased costs brought on by additional tariffs by the U.S. Taking all these factors into account as well as the risk of a partial reversal of deferred tax assets, the Company has made the following downward revisions to its revenue and incomes forecast for fiscal 2025:
The above figures are based on the U.S. dollar trading at 147 yen during the fiscal year (a depreciation of 2 yen from the original forecast and an appreciation of 5 yen compared with the same period of the previous fiscal year) and the euro at 161 yen (a depreciation of 6 yen and an appreciation of 3 yen).
No changes have been made to the total annual dividend forecast of 50 yen per share announced on February 12, 2025.
From SHITARA, Motofumi
President, Chief Executive Officer and Representative Director
With the business results for the first half of fiscal year 2025, we experienced a decline in both revenue and profits due to lower unit sales of our motorcycles, personal watercraft, and golf cars, increases in R&D expenses, labor costs as well as other selling, general and administrative (SG&A) expenses. Although there were decreases in unit sales due to the deteriorating market conditions, we experienced share increases in some main markets for our core businesses like motorcycles and marine products that increased our market presence.
Regarding the forecast consolidated business results for the fiscal year ending December 31, 2025, based on factors like increased trade tariffs being imposed by the United States and increases in R&D expenses, we have made downward adjustments in our forecasts for revenue and various other profits.
In order to achieve our targets for the period, we are working throughout the Company to implement thorough cost controls, continuing to select areas for action and concentration, and rapid efforts to improve our profit structure as quickly as possible.
Our medium- to long-term focus will be on evolving to become a robust company, with the aim of maximizing our corporate value.
Consolidated Business Results
Revenues for the period were 1,277.8 billion yen (a decrease of 70.6 billion yen or 5.2% compared with the same period of the previous fiscal year), operating income was 84.1 billion yen (a decrease of 70.0 billion yen or 45.4%), and net income attributable to owners of parent was 53.1 billion (a decrease of 59.8 billion yen or 52.9%).
For the first half-year consolidated accounting period, the U.S. dollar traded at 148 yen (an increase of 4 yen from the same period of the previous fiscal year) and the euro at 162 yen (an increase of 3 yen).
Declining unit sales in motorcycles, personal watercraft, and golf cars led to lower revenues. For operating income, the decrease in unit sales and higher R&D expenses in the core motorcycle and Marine Product businesses, as well as an increase in labor costs and other SG&A expenses brought revenue down.
Results by Business Segment
Land Mobility Business
Revenues were 808.2 billion yen (a decrease of 35.7 billion yen or 4.2% compared with the same period of the previous fiscal year) and operating income was 59.4 billion yen (a decrease of 38.0 billion yen or 39.0%).
For the motorcycle business, unit sales in developed markets fell below last year's figures due to declining demand in Europe and U.S., but increased sales in Japan brought revenue close to last year's level. As for emerging markets, unit sales decreased overall compared to last year due to production and shipment suspensions in Vietnam in the first quarter as well as decreased unit sales in India and Brazil. Due to these developments, unit sales for the business overall were lower than last year and revenue decreased. As for operating income, the decline in marginal profit ratio due to the lower unit sales and higher procurement costs, along with increased SG&A expenses such as R&D expenses and labor cost, etc., resulted in reduced profits.
For the Smart Power Vehicles business, i.e., electrically power-assisted bicycles (eBikes), their drive units (e-Kits), and electric wheelchairs, unit sales increased compared to the previous year, but due to the change in the model mix, revenue remained about the same year on year. However, due to the decrease in SG&A expenses, the operating loss was small.
Marine Products Business
Revenues were 280.0 billion yen (a decrease of 17.7 billion yen or 5.9% compared with the same period of the previous fiscal year) and operating income was 38.9 billion yen (a decrease of 14.0 billion yen or 26.5%).
Demand for outboard motors in the Company's main market of the U.S. was lower. However, overall unit sales were on par with the previous year due to a rush of demand prior to the implementation of price changes in the U.S., primarily for small and midrange outboard models. Regarding personal watercraft, there was a decrease in demand in the main market of the U.S., which resulted in a year-on-year decrease in unit sales. As a result, the Marine Products business as a whole took in lower revenue. As for operating income, the lower unit sales of personal watercraft and higher procurement expenses, along with an increase in R&D expenses and an increase in labor costs and other SG&A expenses led to a decrease in profits.
Outdoor Land Vehicle Business
Revenues were 77.7 billion yen (a decrease of 17.0 billion yen or 18.0% compared with the same period of the previous fiscal year) with an operating loss of 13.7 billion yen (a year-on-year operating loss of 800 million yen).
With recreational vehicles (all-terrain vehicles and ROVs), market demand was on par with last year's numbers. Despite the consistently strong unit sales of all-terrain vehicles, due to a decrease in ROV sales, the business ended up with reduced revenue and profits overall.
In the Low-Speed Mobility business (golfs cars, etc.), there was an overall decrease in market demand. Unit sales also declined, especially in the main market of the U.S., and as a result of increases in selling cost and SG&A expenses, etc., there was a drop in both revenues and profits.
Robotics Business
Revenues were 50.2 billion yen (an increase of 4.3 billion yen or 9.5% compared with the same period of the previous fiscal year) with an operating loss of 2.6 billion yen (down from an operating loss of 4.0 billion yen).
As for unit sales of surface mounters, demand increased in the principal market of China, which drove up demand in other Asian markets as well, but demand decreased in the developed markets such as Europe, North America, and Japan, which led to a decrease overall year on year. Also, there was a decrease in unit sales of industrial robots, primarily in developed markets. On the other hand, demand for generative AI applications and advanced packaging continued to grow, thus yielding higher sales of Yamaha semiconductor back-end process manufacturing equipment.
As a result of these developments, the Robotics business as a whole had an increase in revenue and a reduction in operating losses compared to last year.
Financial Services Business
Revenues were 53.9 billion yen (a decrease of 2.0 billion yen or 3.6% compared with the same period of the previous fiscal year) and operating income was 8.1 billion yen (a decrease of 2.7 billion yen or 25.3%).
Despite the increase in financial receivables based in foreign currencies, the effects of the strong yen resulted in a decrease in revenues.
As for operating income, the appraised gains derived from interest rate swaps during the last fiscal year were converted to appraisal losses this fiscal year, resulting in lower profits for the period.
Other Products Business
Revenues were 7.9 billion yen (a decrease of 2.5 billion yen or 23.8% compared with the same period of the previous fiscal year) with an operating loss of 6.0 billion yen (a year-on-year operating loss of 2.3 billion yen).
Forecast of Consolidated Business Results
Regarding the consolidated business results for the first half of the fiscal year ending December 31, 2025, the Company's motorcycle business experienced a temporary suspension of production and shipments in Vietnam in the first quarter and India recorded lower unit sales in the first half of the year. Also, in the Marine Products business, demand in the major market of the U.S. was lower than predicted. As a result, both revenue and operating income fell below expectations.
As for the Company's forecast of consolidated business results for the full fiscal year, further declines in revenues and profits are projected not only due to the lower sales factors outlined above but also due to the impact on demand from higher automobile taxes in Indonesia and increased costs brought on by additional tariffs by the U.S. Taking all these factors into account as well as the risk of a partial reversal of deferred tax assets, the Company has made the following downward revisions to its revenue and incomes forecast for fiscal 2025:
No changes have been made to the total annual dividend forecast of 50 yen per share announced on February 12, 2025.
