Weaker yen and lower U.S. tariff payments lifted earnings despite an 8% drop in global sales, while Middle East disruption and weak Southeast Asia demand remained headwinds.
Mitsubishi Motors reported consolidated net profit of ¥1.4 billion ($8.9 million) for the April-June 2026 quarter, up 91.2% from a year earlier, as lower U.S. tariff payments and a weaker yen more than offset softer vehicle sales. Revenue rose 2% to ¥619.8 billion ($4.0 billion), while operating profit climbed 79% to ¥10 billion ($63.8 million). The automaker said currency movements added ¥11.3 billion ($72.1 million) to operating profit. Even so, earnings missed market expectations, with net profit falling well short of the ¥4.8 billion ($30.7 million) average estimate compiled by QUICK Consensus. Global sales dropped 8% to 179,000 vehicles, with Southeast Asia still weak and Middle East disruption reducing sales by 15,000 units. Shipments to the Middle East resumed in June after alternative transport routes were secured, but higher logistics costs tied to heightened regional tensions continued to weigh on results. President Keisuke Kishiura said the Middle East situation had an operating profit impact of about ¥10 billion ($63.8 million), including more than ¥2 billion ($12.8 million) in logistics costs. The company kept its forecast for the fiscal year ending March 2027 unchanged, calling for revenue of ¥3.26 trillion ($20.8 billion), up 13%, and net profit of ¥25 billion ($159.5 million), a 2.5-fold increase, though that profit outlook remains below the ¥30.1 billion ($192.0 million) average estimate from 10 analysts surveyed by IBES. Attention is now on whether Mitsubishi Motors can revive second-half sales, especially in Southeast Asia, while managing risks from Middle East instability and possible changes in U.S. tariff policy.