Yachting Art Magazine

Suzuki has published its results for the second quarter of the 2025 financial year, marked by stagnant sales and a sharp deterioration in margins. The group's performance has been penalised by rising raw material costs and an unfavourable exchange rate environment.

For the period ending 30 September 2025, the manufacturer recorded revenue of approximately €16.2 billion, equivalent to last year's level.

The trend varies by region. Japan posted growth of 12%, Asia 8%, while Europe declined by 8% and other markets by 4%. However, this contrasting geographical picture masks increased pressure on profitability.

Operating profit reached £1.56 billion, down 17.5% year-on-year. The operating margin fell to 9.7%, compared with 11.7% a year earlier. Rising input costs and currency depreciation remain the main factors behind this decline.

Pre-tax profit amounted to approximately £1.88 billion, a contraction of 12%. Net profit fell to £1.09 billion, down 11.3%, with the margin falling to 6.7% from 7.6% the previous year. Suzuki thus recorded its first decline in profits in five quarters.

The marine business offers a more nuanced picture. Sales rose 6% in the second quarter to around £159 million. This improvement is partly due to inventory optimisation in the North American market, which boosted volumes.

However, the segment is also suffering from cost pressures. Operating profit fell to €32 million, down 37%, affected by negative currency effects and a less favourable product mix. The net margin, at 20.2%, remains high but reflects a weakening compared to previous years.

Overall, the quarterly results confirm that Suzuki is operating in a challenging cost environment and is dependent on unfavourable currency fluctuations. Growth in Japan and Asia is not enough to offset the decline in margins, particularly in businesses that are most exposed to component imports.

The manufacturer will therefore have to contend with a challenging economic equation in the coming quarters: maintaining volumes while absorbing higher input costs and currency volatility, two factors that are likely to continue to weigh on its profitability.