MUFG, Mitsubishi Beat Q1 Estimates as Mazda Reels From U.S. Tariffs

Japan’s earnings season opened with several blue-chip companies outperforming market expectations and largely sticking to their full-year guidance, underscoring resilience in the face of higher U.S. tariffs and slowing global growth. Mitsubishi UFJ Financial Group led the pack, reporting April-June net income of ¥546.07 billion, roughly 11 % above consensus. The country’s biggest bank said loan demand at home and overseas remained firm and reiterated its record ¥2 trillion profit goal for the fiscal year ending March 2026. Trading house Mitsubishi Corp booked quarterly net income of ¥203.12 billion, comfortably topping the ¥156.7 billion average estimate, and kept its ¥700 billion full-year forecast while guiding for a dividend of ¥110 a share. Industrial heavyweight Mitsubishi Heavy Industries posted net income of ¥68.23 billion on business profit of ¥104.16 billion and maintained its projection for ¥260 billion in earnings this year. The picture was weaker at Mazda Motor, which swung to a ¥42 billion net loss and a ¥46.12 billion operating loss after the United States imposed a 145 % tariff on Chinese-made vehicles in April. The automaker nevertheless stuck to its target of ¥50 billion operating profit for the year and outlined ¥80 billion of cost reductions. Outside Japan, South Korea’s Hyundai Rotem reported second-quarter results that exceeded analyst estimates across revenue, operating profit and net income, signalling persistent demand for its rail equipment.