Yamaha Motor reports 6.7 percent revenue gain for FY24

Yamaha Motor Corp. has announced its consolidated business results for the full 2024 fiscal year. The Japanese manufacturer of powersports products revealed its revenues were 2,576.2 billion yen ($17 billion USD), an increase of 161.4 billion yen ($1.0 billion USD) or 6.7% compared with the previous fiscal year). The company says it sold more units at higher prices per unit for models sold in Brazil and India in its core motorcycle business in 2024.

As for operating income, after recording the effects soaring prices had on raising labor costs and other selling, general, and administrative (SG&A) expenses; expenses linked to evaluating Yamaha’s business structure, such as inventory valuation reductions and impairment losses on certain fixed assets in the SPV and RV businesses; the final figure for 2024 was 181.5 billion yen (a decrease of 62.4 billion yen or 25.6%).

Our consolidated results for fiscal 2024 set new records for revenue, but operating income declined for the first time in four years. Supply of semiconductors improved and helped our supply of premium segment models recover, but at the same time, the demand for outdoor recreation that boomed during the Covid pandemic has largely settled down in developed markets, so we worked to adjust to suit supply and demand in the Marine Product, Recreational Vehicle (RV), and Smart Power Vehicle (SPV) businesses.

-Katsuaki Watanabe, president and CEO of Yamaha Motor Corp.

Mr. Wantanabe says 2024 was the last year of its Medium-Term Management Plan, where the company worked toward reeling in costs.

“As a result, we met our companywide targets for each financial indicator of growth and profitability. Briefly covering each segment, our core businesses could generate stable profits, but adverse market conditions impacted our growth businesses, and their growth rate suffered. Further, with new businesses, we made progress by launching new businesses and companies but unfortunately did not reach our revenue targets,” Yamaha’s CEO adds.

For the full consolidated fiscal year, the U.S. dollar traded at 152 yen (a depreciation of 11 yen from the previous fiscal year) and the euro at 164 yen (a depreciation of 12 yen).

Land Mobility (Powersports)

• Revenues were 1,715.4 billion yen (an increase of 130.1 billion yen or 8.2% compared with the previous fiscal year), and operating income was 85.5 billion yen (a decrease of 42.0 billion yen or 33.0%).

Demand grew in Europe’s major markets for the motorcycle business in developed markets, and unit sales increased there and in the United States, resulting in higher shipments overall than in 2023. Unit sales in emerging markets went up, primarily driven by higher demand in India and Brazil, and the increased unit sales exceeded 2023’s performance. As a result, the entire motorcycle business recorded higher unit sales.

Revenues for the motorcycle business went up thanks to the higher unit sales and higher prices per unit in Brazil and India. For operating income, while the improved supply of premium segment models in emerging markets led to higher unit sales, soaring prices elevating labor costs, and higher SG&A expenses from provisions for product warranties and other payments, all resulted in profits roughly on par with last year, according to the company.

With recreational vehicles (all-terrain vehicles and ROVs), market demand and shipments fell below 2023’s numbers, resulting in lower revenues. The company reports that operating income, lower unit sales, a worsening model mix, higher marketing and promotional expenses accompanying the intensifying competition, impairment losses on fixed assets, and other recorded expenses resulted in lower profits.

For the Smart Power Vehicles business, i.e., electric wheelchairs, electrically power-assisted bicycles (eBikes), and their drive units (e-Kits), unit sales of eBikes in Japan surpassed 2023’s numbers. However, in Europe, the main market for Yamaha Motor e-Kits, sluggish demand has led to prolonged market inventory adjustments, which brought a decline in unit sales, which resulted in lower sales overall.

Regarding operating income, the lower unit sales of e-Kits, increased sales promotion expenses for complete Yamaha-brand models overseas, and impairment losses on fixed assets and other expenses recorded when conducting reviews of the business’ structure led to the SPV business posting lower profits.

Marine Products

• Revenues were 537.7 billion yen (a decrease of 9.8 billion yen or 1.8% compared with the previous fiscal year) and operating income was 87.8 billion yen (a decrease of 16.4 billion yen or 15.7%).

While the United States – Yamaha Marine’s main market – lowered its policy interest rate in September 2024, the overall high interest rates in general and ongoing price hikes led to decreased outboard motor demand.

Unit sales of new Yamaha outboard models were positive, but sales were lower for the outboard business overall. Customers remained hesitant to purchase personal watercraft due to concerns about rising interest rates and, therefore, decreased demand. However, unit sales increased due to supply chain improvements over 2023.

Sales and profits fell overall for the Marine Products business. Also, Yamaha Motor’s consolidated business results for the fiscal year include the performance recorded by German electric marine propulsion manufacturer Torqeedo GmbH from April to December 2024.

Financial Services

• Revenues were 112.2 billion yen (an increase of 25.7 billion yen or 29.7% compared with the previous fiscal year) and operating income was 22.7 billion yen (an increase of 5.6 billion yen or 32.6%).

The increase in financial receivables pushed revenues up for the period. Operating income increased due to higher income from interest payments. The appraised losses derived from interest rate swaps last fiscal year were converted to appraisal gains this fiscal year. This increased profits for the period.

Forecast for 2025

Yamaha Motor expects the environment surrounding the group in fiscal 2025 to remain uncertain due to the situation in the Middle East and other geopolitical risks, but also due to the sluggish Chinese economy and the impacts various economic policies will have on the global economy, such as the additional tariffs being put in place by the new U.S. presidential administration, along with exchange rate fluctuations.

With this being the case, Yamaha expects emerging market motorcycle demand to remain robust and for outboard motor demand to recover gradually.

Yamaha says it anticipates price hikes for aluminum and other raw materials and that labor and energy costs will continue to increase. The company is working to reduce costs and improve productivity in response to these potential risks.

The forecast consolidated business results for FY2025 are as follows:

The full report from Yamaha can be found on the company’s corporate website here.