Yamaha posts strong Q1 growth as U.S. motorcycle demand rises
Yamaha Motor Co., Ltd. reported strong first-quarter financial results for fiscal 2026, driven largely by higher motorcycle sales in developed markets, including the United States, while also navigating ongoing tariff pressures and rising raw material costs.
The company reported first-quarter revenue of 730.1 billion yen ($4.65 billion USD), up 16.6% year-over-year, while operating income rose 43.8% to 62.6 billion yen ($399 million USD). Net income attributable to Yamaha Motor increased 34.5% to 41.3 billion yen ($263 million USD).
Yamaha President and CEO Motofumi Shitara said nearly all of the company’s business segments posted higher sales during the quarter, with motorcycles leading the gains.
“We posted higher year-on-year revenue and profits for the first quarter of fiscal 2026,” Shitara said in a May 15 statement. “The strong sales we saw in nearly all of our businesses, particularly in the motorcycle business, led to higher overall revenue.”
North America helps drive growth
Within Yamaha’s Land Mobility division — its largest business segment — revenue climbed 23.7% to 479.9 billion yen ($3.06 billion USD), while operating income surged 76.3% to 49 billion yen ($312 million USD).
The company said motorcycle sales in developed markets increased overall as stronger demand in Europe and the U.S. offset softer sales in Japan. Emerging markets also improved as Vietnam returned to normal production operations following disruptions last year.
The results provide another sign that motorcycle demand in North America remains resilient despite higher interest rates and ongoing economic uncertainty.
Yamaha also reported gains in its marine business tied to North American demand. The company said outboard motor sales increased in the U.S., Europe, Asia, and Latin America, helping marine revenue rise 6% to 148.6 billion yen ($946 million USD).
However, profitability in the marine segment declined due to tariff-related costs and other expenses. Yamaha also noted that personal watercraft sales in the U.S. remained weak compared to last year.
Tariffs remain a concern
Tariffs continued to weigh on several Yamaha business units during the quarter, including marine products, ATVs, side-by-sides, and low-speed vehicles.
Shitara said the company expects some relief after the U.S. Supreme Court ruled reciprocal tariffs unconstitutional and certain products received exemptions from steel and aluminum tariffs. Still, Yamaha warned that geopolitical instability in the Middle East and rising raw material prices continue to create uncertainty for manufacturers globally.
In Yamaha’s Outdoor Land Vehicles segment, which includes ATVs and recreational off-highway vehicles, revenue was essentially flat at 41.2 billion yen ($262 million USD) while operating losses widened to 7.8 billion yen ($50 million USD) due largely to tariff impacts and higher costs.
The company’s low-speed mobility business, including golf cars, also saw weaker U.S. demand and lower profitability.
eBike business grows, but losses continue
Yamaha’s Smart Power Vehicles business, which includes e-bikes, drive units, and electric wheelchair power systems, posted higher sales due to increased demand for e-bike drive systems.
Despite the revenue growth, the segment continued operating at a loss as Yamaha increased R&D spending and absorbed higher costs tied to electrification efforts. The company maintained its full-year forecast for fiscal 2026, including projected revenue of 2.7 trillion yen ($17.2 billion USD) and operating income of 180 billion yen ($1.15 billion USD).
Yamaha said its forecast assumes the U.S. dollar will average 155 yen during the fiscal year.
