Isuzu booked a 30.7% jump in operating profit for the quarter ended June 30, and left its full-year targets untouched. But the same three months turned operating cash flow negative, a swing the truckmaker attributes to two deliberate, one-off decisions rather than a demand problem.
Revenue for the quarter reached ¥832.5bn, up 6.8% from ¥779.9bn a year earlier. Operating profit rose to ¥74.8bn from ¥57.2bn, and net profit attributable to shareholders climbed 23.0% to ¥50.9bn from ¥41.4bn, lifting basic earnings per share to ¥74.12 from ¥58.18. Isuzu kept its guidance for the year to March 2027 unchanged from the forecast it issued in May: revenue of ¥3.70tn, operating profit of ¥260.0bn and net profit of ¥160.0bn.
| Metric | Year-earlier quarter | Latest quarter | Full-year forecast |
|---|---|---|---|
| Revenue | ¥779.9bn | ¥832.5bn | ¥3.70tn |
| Operating profit | ¥57.2bn | ¥74.8bn | ¥260.0bn |
| Net profit (parent) | ¥41.4bn | ¥50.9bn | ¥160.0bn |
| Basic EPS | ¥58.18 | ¥74.12 | ¥232.82 |
Operating activities used ¥45.3bn in cash during the quarter, reversing a ¥63.4bn inflow in the same period last year. Isuzu points to two disclosed factors behind the reversal. First, the company deliberately shortened payment terms to suppliers, a move it says accounted for roughly ¥90bn of a ¥111.7bn decline in trade payables. Second, shipment delays tied to conditions in the Middle East and a shortage of vessel space to destination countries pushed up finished-goods inventory by about ¥35bn, part of a ¥71.9bn overall rise in inventory. Income tax payments of ¥16.4bn added to the outflow. Isuzu describes both the payment-term change and the inventory build as factors concentrated in this one quarter, not a recurring drag.
Isuzu covered the gap through financing rather than by drawing down cash. Commercial paper outstanding rose ¥123.0bn and the company took out ¥53.1bn in new long-term loans, producing a financing inflow of ¥106.4bn against ¥31.2bn in dividend payments and ¥25.3bn of loan repayments. Interest-bearing debt rose ¥153.6bn to ¥1.01tn, and total assets grew to ¥3.70tn. The equity ratio attributable to parent shareholders ticked up to 40.7%, from 40.4% at the end of March. Investing activities used ¥64.2bn, mostly ¥51.7bn of capital spending on plant and equipment.
The company kept its annual dividend forecast for the year to March 2027 at ¥94.00 a share, up ¥2.00 from the ¥92.00 paid out the previous year. Separately, Isuzu (China) Engine Co., previously a consolidated subsidiary, became an equity-method affiliate as of this quarter, after a joint-operation restructuring with Chongqing-based partners Qingling Motors (Group) and Qingling Motors Corporation completed local procedures on April 30, 2026.