Subaru's Q2 revenue up, profit down on tariffs, R&D spend

Subaru Corporation announced mixed consolidated financial results for the first half of the fiscal year ending March 2026. Revenue increased 5.3% to JPY 2,385,662m, primarily due to higher unit sales and improved pricing. However, operating profit decreased 53.8% to JPY 102,670m. Profit before tax fell 41.4% to JPY 129,479m, and profit attributable to owners of the parent declined 44.5% to JPY 90,443m. These profit reductions were influenced by additional tariffs in the U.S., increased research and development expenses, and rising raw material costs.

Automobile segment revenue grew 5.2% to JPY 2,323,532m, while segment profit decreased 56.1% to JPY 97,257m. Total assets at the end of September 2025 stood at JPY 5,218,249m, an increase of JPY 130,000m from the previous fiscal year-end. Liabilities rose JPY 87,600m to JPY 2,460,184m, and total equity increased JPY 42,400m to JPY 2,758,065m.

The company maintains its full-year forecast for FYE 2026, anticipating revenue of JPY 4,580,000m and operating profit of JPY 200,000m. No revisions were made to dividends, production, or consolidated unit sales targets. Interim and year-end dividends are projected at JPY 57 and JPY 58 respectively, totaling JPY 115.