Subaru Reports 12.9% Jump in Operating Profit for Q2 FY2027

Subaru Corporation reported a 12.9% year-over-year increase in operating profit to ¥115.955 billion for the first half of fiscal year 2027, according to its interim report released November 10, 2026. This growth, alongside a 5.4% rise in sales revenue to ¥2,513.43 billion, signals a positive trend for the automaker despite ongoing macroeconomic headwinds.

The increase in operating profit was primarily attributable to favorable exchange rates—specifically, the weakening of the yen—and cost reduction initiatives. These factors offset pressures from rising raw material costs, a decrease in sales volume compared to the prior period (which had benefited from inventory build-up), and increased sales incentives. The company also benefited from a reduction in warranty repair expenses. Notably, net profit attributable to owners of the parent company rose 12.9% to ¥102.128 billion.

Subaru sold a total of 444,000 vehicles during the first half of the fiscal year, a 6.1% decrease compared to the same period last year. Despite this decline in unit sales, the company’s revenue increased, suggesting a positive shift in pricing and product mix. The company’s financial position remains solid, with total assets at ¥5,379.1 billion, a decrease of ¥1,132 billion from the end of the previous fiscal year.

Looking ahead, Subaru has maintained its full-year forecasts, projecting ¥5.2 trillion in sales revenue and ¥1.5 trillion in operating profit. While the company anticipates increased costs in the second half of the fiscal year, it expects to mitigate these pressures through increased sales volume, continued cost reforms, and expansion of revenue streams across its value chain. The company plans to continue its share buyback program, having already repurchased approximately ¥670 billion worth of shares against a ¥1.5 trillion maximum authorized amount.