Denso has announced its financial results for the third quarter ending December 31, 2025, revealing a mixed performance. The mobility supplier reported consolidated revenue of 5,495.5 billion yen ($35.2 billion), a 3.9% increase from the prior year.
However, Denso’s consolidated operating profit fell to 375.9 billion yen ($2.4 billion), marking a 6.4% decrease compared to the same period last year. Profit attributable to owners of the parent company also decreased by 12.5% to 273.7 billion yen ($1.8 billion).
The revenue boost was attributed to higher vehicle sales in North America, Japan, and Asia, alongside price adjustments, according to CFO Yasushi Matsui. Despite this, the decline in operating profit was primarily due to rising parts costs, tariff impacts, quality-related provisions, and increased research and development expenditures.
Regionally, Japan saw a 3.3% revenue increase to 3,225.1 billion yen ($20.6 billion), although operating profit dropped 34.2% to 117.0 billion yen ($748.3 million). North America’s revenue rose 8.0% to 1,475.5 billion yen ($9.4 billion), with a 3.3% increase in operating profit to 74.9 billion yen ($479.3 million).
In Europe, Denso experienced a 3.9% revenue growth to 557.7 billion yen ($3.6 billion), and operating profit surged 246.8% to 17.0 billion yen ($108.7 million). Asian markets saw a modest 0.3% revenue increase to 1,466.9 billion yen ($9.4 billion), but operating profit grew by 15.6% to 145.4 billion yen ($930.5 million).
Looking ahead, Denso has forecasted revenue for the fiscal year ending March 31, 2026, at 7,420.0 billion yen ($47.5 billion) and operating profit at 535.0 billion yen ($3.4 billion). This outlook reflects expectations of a weaker yen and cost recovery, while also taking into account ongoing challenges like part costs and tariff impacts.
These projections consider current exchange rate assumptions but remain subject to change based on future market conditions, as noted by the company.