Subaru's Q1 profit falls 10.3% to 49.19 billion yen, shares decline

Subaru Corp. reported a decline in profit for the first quarter of fiscal 2027, despite an increase in revenues. The Japanese automaker announced on Wednesday that its profit attributable to the owners fell by 10.3% to 49.19 billion yen, compared to 54.85 billion yen during the same period last year. Shares on the Tokyo Stock Exchange dipped 4.02%, trading at 2,480.00 yen.

The drop in profit comes as Subaru faces challenges in operating costs and supply chain disruptions, which have persisted since the pandemic. While the company managed to grow its revenue by 3% to 1.25 trillion yen, up from 1.21 trillion yen a year ago, the significant decrease in operating profit—down 44.3% to 42.57 billion yen—highlights ongoing financial pressures.

Looking forward, Subaru remains optimistic about its fiscal outlook for the year ending March 31, 2027. The company is sticking to its forecast of a net profit of 130 billion yen, which would represent a 43.1% increase year-over-year. Additionally, it expects operating profit to reach 150 billion yen, up 273.9% from last year, and overall revenues of 5.20 trillion yen, an 8.7% increase.

This mixed financial report raises questions about Subaru's ability to navigate market challenges while maintaining growth. Investors will be keen to see if the company's ambitious targets for the fiscal year can offset the current profit decline, as they reflect broader trends in the automotive industry that may impact future performance.