Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under IFRS ) Blandants FASF MEMBERSHIP August 5 , 2026 Company name Listing : SUBARU CORPORATION Securities code URL Representative Inquiries Telephone : Tokyo Stock Exchange : 7270 : https://www.subaru.co.jp/en/ir/ : Atsushi Osaki , Representative Director , President and CEO : Takuma Noguchi , General Manager of Investor Relations Department : + 81-3-6447-8825 Scheduled date to commence dividend payments Preparation of supplementary material on financial results Holding of financial results briefing : : Yes : Yes ( for investment analysts and institutional investors ) ( Yen amounts are rounded to the nearest million , unless otherwise noted . ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Revenue Operating profit Profit before tax Profit for the period Millions of Three months ended % June 30 , 2026 yen 1,250,858 June 30 , 2025 3.0 1,214,104 11.2 Millions of yen 42,571 ( 44.3 ) 76,399 ( 16.2 ) % Millions of yen 61,419 ( 21.7 ) 78,464 ( 27.4 ) % Millions of yen 49,217 ( 10.3 ) 54,863 ( 34.7 ) % % Profit for the period attributable comprehensive to owners of parent Millions of yen 49,194 ( 10.3 ) 54,849 ( 34.7 ) Total income Millions of % yen 61,254 113.9 28,635 ( 79.0 ) Profit for the period per share attributable to owners of parent , basic Profit for the period per share attributable to owners of parent , diluted Three months ended Yen Yen June 30 , 2026 69.02 69.02 June 30 , 2025 75.03 75.02 ( 2 ) Consolidated financial position As of June 30 , 2026 March 31 , 2026 2. Cash dividends Fiscal year ended March 31 , 2026 Fiscal year ending March 31 , 2027 Fiscal year ending March 31 , 2027 ( Forecast ) Total assets Millions of yen 5,411,390 5,492,301 Ratio of equity Total equity Equity attributable to owners of parent attributable to owners of parent to total assets Millions of yen Millions of yen % 2,773,997 2,781,661 2,772,720 2,780,407 51.2 50.6 Annual dividends per share First quarter - end Second quarter - end Third quarter - end Fiscal year - end Total Yen Yen Yen Yen Yen 57.00 58.50 115.50 58.00 Note : Revisions to the forecast of cash dividends most recently announced : None 58.00 116.00
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3. Forecast of consolidated results for the fiscal year ending March 31, 2027 (from April 01, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Revenue Operating profit Profit before tax Profit for the year attributable to owners of parent Profit for the year per share attributable to owners of parent, basic Fiscal year ending March 31, 2027 (Forecast) Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 5,200,000 8.7 150,000 273.9 180,000 67.5 130,000 43.1 179.59 Note: Revisions to the forecast of consolidated results most recently announced: None * Notes (1) Significant changes in the scope of consolidation during the period: Yes Excluded: 12 companies SUBARU SHINSHU INC., GIFU SUBARU MOTORS INC., KYOTO SUBARU MOTORS INC., NISHIKYUSHU SUBARU INC. and 8 other sales subsidiaries in Japan Change in the scope of consolidation is due to the integration of two sales subsidiaries in the Hoku-Shin-Etsu region, two sales subsidiaries in the Tokai region, three sales subsidiaries in the Kinki region and five sales subsidiaries in the Kyushu region. (2) Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS : None (ii) Changes in accounting policies due to other reasons : None (iii) Changes in accounting estimates : None (3) Number of issued shares (common stock) (i) Total number of issued shares at the end of the period (including treasury stock) As of June 30, 2026 717,335,273 shares As of March 31, 2026 717,335,273 shares (ii) Number of treasury stock at the end of the period As of June 30, 2026 12,759,591 shares As of March 31, 2026 1,906,899 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Thre e months ended June 30, 2026 712,715,095 shares Three months ended June 30, 2025 731,033,934 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Proper use of earnings forecasts, and other special matters The performance projections were based on the information available as of the date when this document was released. Therefore, actual results may differ considerably due to various factors that might occur in the future.
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―1― Index of the attachments 1. Qualitative information on quarterly financial results................................................................................ 2 (1) Explanation about operating performance............................................................................................ 2 (2) Explanation about financial position...................................................................................................... 3 (3) Explanation about cash flows.................................................................................................................. 4 (4) Explanation about future forecasts such as projections for the current fiscal year........................... 4 2. Condensed quarterly consolidated financial statements............................................................................. 5 (1) Condensed quarterly consolidated statement of financial position...................................................... 5 (2) Condensed quarterly consolidated statement of income and condensed quarterly consolidated statement of comprehensive income............................................................................................................. 7 Condensed quarterly consolidated statement of income........................................................................ 7 Condensed quarterly consolidated statement of comprehensive income............................................... 8 (3) Condensed quarterly consolidated statement of changes in equity...................................................... 9 (4) Condensed quarterly consolidated statement of cash flows.................................................................. 11 (5) Notes to condensed quarterly consolidated financial statements.......................................................... 12 (Notes on premise of going concern) ........................................................................................................ 12 (Segment information) ............................................................................................................................... 12 (Significant subsequent event) .................................................................................................................. 12
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―2― 1. Qualitative information on quarterly financial results (1) Explanation about operating performance Revenue for the three months ended June 30, 2026 increased by 36.8 billion yen (3.0%) year on year to 1,250.9 billion yen. Operating profit decreased by 33.8 billion yen (44.3%) year on year to 42.6 billion yen, despite favorable foreign exchange effects, a reduction in the impact of U.S. tariffs and cost reduction efforts, due to a decline in unit sales, an increase in sales incentives, and higher raw material costs and unfavorable market conditions. Profit before tax fell by 17.0 billion yen (21.7%) year on year to 61.4 billion yen, and profit for the period attributable to owners of parent declined by 5.7 billion yen (10.3%) year on year to 49.2 billion yen. (Millions of yen) Revenue Operating profit Profit before tax Profit for the period attributable to owners of parent Foreign exchange rate Margin Margin Margin FYE2027 1st Quarter 1,250,858 42,571 61,419 49,194 ¥159/US$ 3.4% 4.9% 3.9% FYE2026 1st Quarter 1,214,104 76,399 78,464 54,849 ¥146/US$ 6.3% 6.5% 4.5% Change 36,754 (33,828) (17,045) (5,655) Percentage Change 3.0 (44.3%) (21.7%) (10.3%) Results by business segment were as follows. (Millions of yen) Revenue Segment Profit FYE2026 1st Quarter FYE2027 1st Quarter Change Percentage Change FYE2026 1st Quarter FYE2027 1st Quarter Change Percentage Change Automobile 1,183,943 1,210,939 26,996 2.3% 74,095 40,102 (33,993) (45.9%) Aerospace 28,801 38,720 9,919 34.4% 342 624 282 82.5% Others 1,360 1,199 (161) (11.8%) 1,849 1,671 (178) (9.6%) Adjustments － － － － 113 174 61 54.0% Total 1,214,104 1,250,858 36,754 3.0% 76,399 42,571 (33,828) (44.3%) Notes: 1. Revenue is the revenue from external customers. 2. Adjustment to segment profit refers to the elimination of intersegment transactions. 3. Other segment includes real estate leasing business, etc. (i) Automobile Division Domestic unit sales remained broadly in line with the same period of the previous fiscal year at 23,000 units, while overseas unit sales decreased by 23,000 units (10.4%) year on year to 197,000 units. As a result, combined domestic and overseas unit sales decreased by 23,000 units (9.5%) year on year to 220,000 units. Revenue increased by 27.0 billion yen (2.3%) year on year to 1,210.9 billion yen, and segment profit fell by 34.0 billion yen (45.9%) year on year to 40.1 billion yen.
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―3― Unit sales by region were as follows. (ii) Aerospace Division In the commercial business, revenue rose 9.9 billion yen (34.4%) year on year to 38.7 billion yen owing primarily to an increase in the number of center wing boxes delivered. Segment profit amounted to 0.6 billion yen, reflecting an increase of 0.3 billion yen (82.5%) year on year. (iii) Other Businesses Revenue decreased by 0.2 billion yen (11.8%) year on year to 1.2 billion yen. Segment profit fell by 0.2 billion yen (9.6%) year on year to 1.7 billion yen. (2) Explanation about financial position (i) Assets Total assets decreased by 80.9 billion yen from the end of the previous fiscal year to 5,411.4 billion yen at the end of June 2026. The key factors include: 1) a decrease of 73.0 billion yen in cash and cash equivalents due to dividend payments and others; 2) a decrease of 24.9 billion yen in other financial assets (non-current) due to changes in the fair value of securities and others; 3) a decrease of 15.9 billion yen in inventories due to lower inventories of new vehicles and others; and 4) an increase of 16.8 billion yen in trade and other receivables due to an increase in other receivables and others. (ii) Liabilities Total liabilities decreased by 73.2 billion yen from the end of the previous fiscal year to 2,637.4 billion yen. The key factors include: 1) a decrease of 85.4 billion yen in trade and other payables due to a decrease in accounts payable- trade and others; 2) a decrease of 11.4 billion yen in other financial liabilities (non-current) due to a decrease in lease liabilities and others; 3) an increase of 14.1 billion yen in income taxes payable; and 4) an increase of 13.6 billion yen in other non-current liabilities due to an increase in unearned revenue on extended warranty in the Automobile Division and others. (iii) Equity Total equity decreased by 7.7 billion yen from the end of the previous fiscal year to 2,774.0 billion yen. The key factors include: 1) an increase of 27.0 billion yen in treasury stock due to the purchase of treasury stock; 2) an increase of 12.1 billion yen in other components of equity due to an increase in foreign currency translation adjustments and others; and 3) an increase of 7.2 billion yen in retained earnings due to profit for the period and the payment of dividends. (Units: Thousands of vehicles ) FYE2026 1st Quarter FYE2027 1st Quarter Change Percentage Change Total in Japan 24 23 (0) (1.0%) Passenger cars 20 20 0 2.0% Minicars 4 3 (1) (18.0%) Total Overseas 220 197 (23) (10.4%) U.S. 171 150 (21) (12.3%) Canada 19 19 0 1.5% Europe 5 8 2 45.5% Australia 15 11 (4) (27.4%) Other regions 10 9 (0) (4.8%) Total 244 220 (23) (9.5%)
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―4― (3) Explanation about cash flows Cash and cash equivalents at the end of the three months ended June 30, 2026 totaled 932.4 billion yen. (i) Net cash provided by (used in) operating activities Net cash provided by (used in) operating activities increased by 55.5 billion yen (same period of the previous fiscal year: an increase of 147.2 billion yen). The key factors include: 1) 61.4 billion yen in profit before tax; 2) 72.8 billion yen in depreciation and amortization; and 3) a decrease of 55.2 billion yen in trade and other payables. (ii) Net cash provided by (used in) investing activities Net cash provided by (used in) investing activities decreased by 31.7 billion yen (same period of the previous fiscal year: a decrease of 102.0 billion yen). The key factors include: 1) expenditures totaling 55.3 billion yen as a result of purchase of property, plant and equipment (net amount of proceeds from sale); and 2) a net decrease of 37.1 billion yen in time deposits. (iii) Net cash provided by (used in) financing activities Net cash provided by (used in) financing activities decreased by 104.0 billion yen (same period of the previous fiscal year: a decrease of 66.5 billion yen). The key factors include: 1) 41.2 billion yen in dividends paid to owners of the parent ;2) 30.0 billion yen in repayments of long-term borrowings; and 3) 27.0 billion yen for the purchase of treasury stock. (4) Explanation about future forecasts such as projections for the current fiscal year No revisions have been made to the consolidated financial forecast for the current fiscal year, which was announced on May 15, 2026.
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―5― 2. Condensed quarterly consolidated financial statements (1) Condensed quarterly consolidated statement of financial position (Unit: Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and cash equivalents 1,005,334 932,381 Trade and other receivables 476,322 493,134 Inventories 801,377 785,445 Income taxes receivable 62,645 71,667 Other financial assets 877,671 872,426 Other current assets 151,056 152,912 Total current assets 3,374,405 3,307,965 Non-current assets Property, plant and equipment 1,221,752 1,226,555 Intangible assets and goodwill 265,936 260,305 Investment property 22,839 22,784 Investments accounted for using equity method 5,617 5,625 Other financial assets 192,614 167,681 Other non-current assets 305,931 313,222 Deferred tax assets 103,207 107,253 Total non-current assets 2,117,896 2,103,425 Total assets 5,492,301 5,411,390
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―6― (Unit: Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 541,727 456,361 Financing liabilities 47,200 19,134 Other financial liabilities 85,286 89,403 Income taxes payable 7,649 21,759 Provisions 289,983 287,678 Other current liabilities 557,213 567,361 Total current liabilities 1,529,058 1,441,696 Non-current liabilities Financing liabilities 337,300 345,366 Other financial liabilities 123,139 111,756 Employee benefits 69,991 71,136 Provisions 191,041 194,087 Other non-current liabilities 459,439 473,039 Deferred tax liabilities 672 313 Total non-current liabilities 1,181,582 1,195,697 Total Liabilities 2,710,640 2,637,393 Equity Equity attributable to owners of parent Capital stock 153,795 153,795 Capital surplus 160,430 160,430 Treasury stock (4,751) (31,793) Retained earnings 2,067,283 2,074,518 Other components of equity 403,650 415,770 Total equity attributable to owners of parent 2,780,407 2,772,720 Non-controlling interests 1,254 1,277 Total equity 2,781,661 2,773,997 Total liabilities and equity 5,492,301 5,411,390
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―7― (2) Condensed quarterly consolidated statement of income and condensed quarterly consolidated statement of comprehensive income Condensed quarterly consolidated statement of income (Unit: Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Revenue 1,214,104 1,250,858 Cost of sales (998,329) (1,070,611) Gross profit 215,775 180,247 Selling, general and administrative expenses (102,386) (106,603) Research and development expenses (35,567) (38,424) Other income 1,991 11,280 Other expenses (3,477) (3,963) Share of profit of investments accounted for using equity method 63 34 Operating profit 76,399 42,571 Finance income 20,153 23,004 Finance costs (18,088) (4,156) Profit before tax 78,464 61,419 Income tax expense (23,601) (12,202) Profit for the period 54,863 49,217 Profit for the period attributable to Owners of parent 54,849 49,194 Non-controlling interests 14 23 Profit for the period 54,863 49,217 Profit for the period per share attributable to owners of parent Basic (yen) 75.03 69.02 Diluted (yen) 75.02 69.02
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―8― Condensed quarterly consolidated statement of comprehensive income (Unit: Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit for the period 54,863 49,217 Other comprehensive income (after deduction of tax) Items that will not be reclassified to profit or loss Net changes in revaluation of capital financial assets measured at fair value through other comprehensive income (607) (5,162) Share of other comprehensive income of investments accounted for using equity method (5) (69) Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations (26,418) 17,174 Net changes in revaluation of liability financial assets measured at fair value through other comprehensive income 728 (90) Share of other comprehensive income of investments accounted for using equity method 74 184 Other comprehensive income (after deduction of tax) total (26,228) 12,037 Comprehensive income 28,635 61,254 Comprehensive income attributable to Owners of parent 28,621 61,231 Non-controlling interests 14 23 Comprehensive income 28,635 61,254
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―9― (3) Condensed quarterly consolidated statement of changes in equity Three months ended June 30, 2025 (Unit: Millions of yen) Equity attributable to owners of parent Non- controlling interests Total capital Capital stock Capital surplus Treasury stock Retained earnings Other components of equity Total Balance at the beginning of the year 153,795 160,430 (4,649) 2,106,478 298,463 2,714,517 1,191 2,715,708 Comprehensive income Profit for the period － － － 54,849 － 54,849 14 54,863 Other comprehensive income (after deduction of tax) － － － － (26,228) (26,228) － (26,228) Comprehensive income total － － － 54,849 (26,228) 28,621 14 28,635 Transfer to retained earnings － － － － － － － － Transactions with owners Dividends paid － － － (49,006) － (49,006) － (49,006) Purchase of treasury stock － － (1) － － (1) － (1) Total transactions with owners － － (1) (49,006) － (49,007) － (49,007) Balance at the end of the period 153,795 160,430 (4,650) 2,112,321 272,235 2,694,131 1,205 2,695,336
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―10― Three months ended June 30, 2026 (Unit: Millions of yen) Equity attributable to owners of parent Non- controlling interests Total capital Capital stock Capital surplus Treasury stock Retained earnings Other components of equity Total Balance at the beginning of the year 153,795 160,430 (4,751) 2,067,283 403,6502,780,407 1,254 2,781,661 Comprehensive income Profit for the period － － － 49,194 － 49,194 23 49,217 Other comprehensive income (after deduction of tax) － － － － 12,037 12,037 － 12,037 Comprehensive income total － － － 49,194 12,037 61,231 23 61,254 Transfer to retained earnings － － － (83) 83 － － － Transactions with owners Dividends paid － － － (41,876) － (41,876) － (41,876) Purchase of treasury stock － － (27,042) － － (27,042) － (27,042) Total transactions with owners － － (27,042) (41,876) － (68,918) － (68,918) Balance at the end of the period 153,795 160,430 (31,793) 2,074,518 415,7702,772,720 1,277 2,773,997
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―11― (4) Condensed quarterly consolidated statement of cash flows (Unit: Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net cash provided by (used in) operating activities Profit before tax 78,464 61,419 Depreciation and amortization 56,398 72,820 Share of loss (profit) of investments accounted for using equity method (63) (34) Finance income (20,153) (23,004) Finance costs 18,088 4,156 Decrease (increase) in trade and other receivables 15,674 (15,151) Decrease (increase) in inventories (3,809) 21,273 Increase (decrease) in trade and other payables 19,230 (55,232) Increase (decrease) in provisions and employee benefits 12,754 1,982 Others (8,997) (17,671) Subtotal 167,586 50,558 Interest received 14,968 11,191 Dividends received 2,702 2,813 Interest paid (1,324) (1,510) Income taxes paid (36,717) (7,528) Net cash provided by (used in) operating activities 147,215 55,524 Net cash provided by (used in) investing activities Net decrease (increase) in time deposits (11,414) 37,114 Purchase of property, plant and equipment (66,024) (55,858) Proceeds from sale of property, plant and equipment 1,414 593 Purchase of intangible assets and expenditure on internally generated intangible assets (16,367) (13,240) Purchase of securities (28,716) (113,098) Proceeds from sale of securities 22,352 110,213 Payments of loans receivable (43,060) (44,514) Collection of loans receivable 41,235 47,576 Others (1,392) (532) Net cash provided by (used in) investing activities (101,972) (31,746) Net cash provided by (used in) financing activities Repayments of long-term borrowings (21,000) (30,000) Proceeds from long-term borrowings 12,500 10,000 Repayments of lease liabilities (9,834) (15,684) Purchase of treasury stock (1) (27,042) Dividends paid to owners of parent (48,211) (41,239) Others － (77) Net cash provided by (used in) financing activities (66,546) (104,042) Effect of exchange rate changes on cash and cash equivalents (10,644) 7,311 Net increase (decrease) in cash and cash equivalents (31,947) (72,953) Cash and cash equivalents at beginning of period 941,460 1,005,334 Cash and cash equivalents at end of period 909,513 932,381
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―12― (5) Note to condensed quarterly consolidated financial statements (Note on premise of going concern) Three months ended June 30, 2026 Not applicable. (Segment information) Information on revenue, profit or loss, and other significant items by segment Segment information by business type of the Company and its consolidated subsidiaries during the three months ended June 30, 2025 and the three months ended June 30, 2026 is as follows. Three months ended June 30, 2025 (Unit: Millions of yen) Automobile Aerospace Subtotal Others Adjustment Consolidated Revenue (1) Outside customers 1,183,943 28,801 1,212,744 1,360 － 1,214,104 (2) Inter-segment 455 － 455 5,611 (6,066) － Total revenue 1,184,398 28,801 1,213,199 6,971 (6,066) 1,214,104 Share of profit (loss) of investments accounted for using equity method 64 － 64 (1) － 63 Operating profit 74,095 342 74,437 1,849 113 76,399 Finance income 20,153 Finance costs (18,088) Profit before tax 78,464 Three months ended June 30, 2026 (Unit: Millions of yen) Automobile Aerospace Subtotal Others Adjustment Consolidated Revenue (1) Outside customers 1,210,939 38,720 1,249,659 1,199 － 1,250,858 (2) Inter-segment 804 － 804 4,739 (5,543) － Total revenue 1,211,743 38,720 1,250,463 5,938 (5,543) 1,250,858 Share of profit of investments accounted for using equity method 26 － 26 8 － 34 Operating profit 40,102 624 40,726 1,671 174 42,571 Finance income 23,004 Finance costs (4,156) Profit before tax 61,419 Note: The method of calculating operating profit (loss) for each segment is consistent with the method of calculating operating profit (loss) in the condensed quarterly consolidated statement of income, and does not include financial income, financial costs, and income tax expense. In addition, operating expenses that cannot be charged directly to each segment are allocated to each segment based on the most reasonable allocation criteria. (Significant subsequent event) Not applicable.