Mazda Earnings Slump as Profits Slide, but Automaker Targets Sharp Rebound in FY2027

Mazda Motor ( (JP:7261) ) has provided an announcement.

Mazda reported a challenging fiscal year ended March 31, 2026, with consolidated net sales down 2.0% to ¥4.92 trillion and operating income plunging 72.3% to ¥51.6 billion, while net income attributable to owners fell 69.2% to ¥35.1 billion. Despite weaker profitability, total assets and net assets increased, equity in earnings of affiliates rose, cash and cash equivalents climbed to ¥1.29 trillion, and the company maintained a stable annual dividend of ¥55 per share, though the payout ratio surged to nearly 99%.

Unconsolidated results deteriorated sharply, with Mazda posting an operating loss of ¥174.8 billion and a net loss of ¥103.4 billion, while its equity ratio weakened on a standalone basis. Management forecasts a rebound in FY2027, projecting double-digit growth in net sales and a near-tripling of operating income, which, if achieved, would significantly restore earnings power and improve returns for shareholders, but also underscores the execution risk Mazda faces amid competitive and macroeconomic pressures.

The most recent analyst rating on (JP:7261) stock is a Hold with a Yen1100.00 price target. To see the full list of analyst forecasts on Mazda Motor stock, see the JP:7261 Stock Forecast page.

More about Mazda Motor

Mazda Motor Corporation is a Japanese automotive manufacturer listed on the Tokyo Stock Exchange, known for producing passenger vehicles and commercial automobiles under the Mazda brand. The company focuses on global markets with a portfolio spanning internal combustion, electrified models, and associated financial and mobility services, competing in the intensely contested global auto industry.

Average Trading Volume: 6,834,937

Technical Sentiment Signal: Sell

Current Market Cap: Yen624.1B

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