Mazda Motor Corp.

Mazda Motor reported a first-quarter shift from loss to profit, issued full-year earnings guidance, and reaffirmed dividend expectations for the fiscal year ending March 31, 2027. The stock trades at a price-to-earnings ratio of 7x, well below the Asian auto industry average of 12.7x and a peer average of 21x, and also below an estimated fair P/E of 14.4x. A discounted cash flow model suggests a fair value of ¥1,527.66 per share compared with the current price of ¥1,181. The shares have returned 14.16% over the past 90 days and 27.66% over one year, but are down 5.18% year-to-date.

The consolidated April–June results for Japan's seven major automakers are now in, with Toyota Motor posting a net profit of 1.477 trillion yen, up 75.6 percent year on year, and Honda roughly 2.3 times higher, as a weaker yen and reduced US tariff burdens lifted earnings. Nissan Motor and Mazda, which were in the red a year earlier, also swung to a profit, and six of the seven companies — all except Subaru — saw earnings improve. A weaker-than-expected yen and lower US tariff rates under the Japan–US agreement provided a tailwind, while sales in North America and Japan remained solid. Honda Chief Financial Officer Masao Kawaguchi noted that the surge in raw material prices triggered by worsening Middle East tensions had also eased from June and did not rise as much as anticipated.

Mazda announced its consolidated results for the April–June quarter of fiscal 2026, posting a net profit of 29.6 billion yen. This compares with a net loss of 42.1 billion yen in the same period a year earlier. Although raw material costs rose, reductions in fixed costs and foreign exchange effects boosted earnings. The company left its full-year consolidated net profit forecast for the year ending March 2027 unchanged at 90 billion yen, which falls below the average estimate of 96.2 billion yen from 12 analysts polled by IBES.

Mazda Motor Corporation reported a 7.2% year-on-year increase in global passenger vehicle sales to 111,078 units in June 2026, rebounding from a 5% decline in the same month last year. Domestic sales jumped 18% to 13,844 units, while overseas sales rose almost 6% to 97,234 units. For the first six months of the year, however, global sales fell nearly 5% to 606,850 units, with domestic sales down 6.1% to 76,622 units and overseas sales down 4.5% to 530,228 units. The CX-5 remained the best-selling model globally in the first half, with sales up 3.4% to 174,205 units, accounting for almost 29% of total sales. Global vehicle production rose 4.8% to 601,444 units in the first half, driven by an over 11% increase in Japan to 388,503 units, while overseas production fell 5.2% to 212,941 units.

Mazda Motor Corporation reported a 5.7% year-on-year increase in global passenger vehicle sales to 101,074 units in May 2026, recovering from a 9% decline in the same month last year. Domestic sales fell 9.5% to 8,965 units, while overseas sales rose 7.5% to 92,109 units. The CX-5 remained the top-selling model globally with 25,998 units, accounting for almost 26% of total sales, followed by the CX-30 with 17,160 units and the CX-50 with 15,731 units, the latter surging 74%. For the first five months of the year, global sales declined 7.1% to 495,740 units, with domestic sales down over 10% to 62,770 units and overseas sales down 6.6% to 432,970 units. US sales fell almost 7% to 164,672 units year-to-date, China dropped over 11% to 24,196 units, while Europe increased 12% to 75,443 units. Global production rose 3% to 491,647 units in the five-month period, driven by a 10% increase in Japan to 317,230 units, while overseas production fell 8% to 174,417 units. Exports from Japan rose almost 11% to 261,410 units, with shipments to North America up 10.4% to 135,952 units and Europe surging 24% to 53,584 units.

Japan's weakening yen could deliver a combined profit upside of roughly 934 billion yen, or $5.8 billion, to the country's major automakers if the currency stays near current levels, according to Bloomberg estimates. Toyota, Honda, Nissan, Subaru, and Mazda all used more conservative exchange-rate assumptions in their forecasts, with Toyota's May forecast assuming 150 per dollar while the yen has been trading around 161. Toyota estimates that every 1 yen decline against the dollar adds 50 billion yen to operating profit, and Bloomberg-compiled analyst estimates average 4 trillion yen for Toyota's operating profit, above its 3 trillion yen forecast. The setup could strengthen further as energy and raw material costs ease, with crude down more than 30% in yen terms from its late-April peak, and Bloomberg Intelligence analyst Tatsuo Yoshida said the shift could become a major positive factor for Toyota and Honda. Outside automakers, the impact is more mixed, with airlines potentially benefiting from lower jet fuel prices but still facing dollar-linked cost pressures, while a survey showed 40.7% of companies said the late-May exchange rate near 159 per dollar had a negative impact.