Japanese automaker Mazda Motor Corporation reported a 2% drop in global revenues to JPY 4,918.2 billion (US$ 32.6 billion) in the last fiscal year (FY2025), which ended in March 2026, from JPY 5,018.9 billion in the previous fiscal year. Operating profit plunged by 72% to JPY 51.6 billion in this period, while its net profit was down by 69% to JPY 35.1 billion.

The last fiscal year’s sharp deterioration in earnings was blamed largely on changes in US policy, including the introduction of import tariffs and the discontinuation of battery electric vehicle (BEV) incentives, as well as rising raw material and logistics costs. The company reported a strong improvement in its performance the second half of the fiscal year, attributed to an upturn in sales volumes and an improved product mix, as the global roll-out of the CX-5 SUV model got underway, as well as cost-cutting and other external factors.

Over the full fiscal year, the company reported a 6% drop in global sales to 1.223 million vehicles, from 1.303 million units in the previous fiscal year, with sales in the US falling by 9% to 395,000 units, while sales in Europe fell by 6% to 164,000 units, and in Japan volumes fell by 5% to 144,000 units.

Mazda is forecasting a 6% rise in global sales to 1.32 million vehicles in the current fiscal year (FY2026), ending in March 2027, helped by the continued global roll-out of the CX-5 model. Operating income is forecast to rebound to JPY 150 billion, while net income is projected to rise to JPY 90 billion.

Mazda said it will continue to improve its business structure, as input costs continue to increase, with the aim of better managing the growing uncertainty in the global business environment. The company expects a 21% rebound in European sales to 197,000 units in FY2026, and a 10% increase in US sales to 435,000 units.