Denso ( (DNZOY) ) has released its Q1 earnings. Here is a breakdown of the information Denso presented to its investors.
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Denso Corporation, a leading global automotive components manufacturer based in Japan, is known for its commitment to creating environmentally friendly and safe mobility solutions. In its latest earnings report for the quarter ending June 30, 2025, Denso reported a slight increase in revenue to ¥1,754.1 billion, despite challenges such as the strong yen and tariffs in North America. However, the company’s operating profit saw a decline of 11.1% to ¥107.2 billion, primarily due to these external pressures.
Key financial metrics revealed mixed results, with profit before income taxes rising by 1.8% to ¥140.2 billion, while profit attributable to owners of the parent company fell by 16.1% to ¥79.3 billion. Regionally, Japan experienced a revenue increase due to strong vehicle sales, whereas North America and Europe faced revenue declines. Notably, Asia showed a significant increase in operating profit, driven by cost reduction efforts and structural reforms.
Denso’s financial position saw a decrease in total assets to ¥8,027.3 billion, attributed mainly to a reduction in other financial assets. The company also reported an increase in liabilities due to higher bonds and borrowings, while equity decreased due to treasury share purchases.
Looking ahead, Denso has revised its full-year forecast, anticipating revenue of ¥7,200.0 billion for the fiscal year ending March 31, 2026. The company plans to mitigate tariff impacts through cost reductions and strategic pricing adjustments, maintaining an optimistic outlook for operating profit and overall financial performance.