8 • March 2026 • Powersports Business

Yamaha Motor Corp. reported a sharp decline in profitability for the fiscal year ended Dec. 31, 2025, as U. S. tariffs, higher costs and weakness in personal watercraft and sideby-side sales weighed on results.

Revenue for the year totaled ¥ 2.53 trillion($ 16.6 billion USD), down 1.6 % year over year. Operating income fell 30.4 % to ¥ 126.4 billion($ 825 million), while net income attributable to owners of the parent dropped 85.1 % to ¥ 16.1 billion($ 105 million).

Yamaha Motor’ s President and CEO Motofumi Shitara cited continued global uncertainty, including U. S. tariff policy and foreign exchange fluctuations, as key headwinds. Higher procurement costs, increased R & D and SG & A spending, and impairment losses in the company’ s Outdoor Land Vehicle( OLV), i. e., ORV, business further pressured margins.

MOTORCYCLE BUSINESS STABLE Yamaha’ s Land Mobility segment— which includes motorcycles— generated ¥ 1.62 trillion($ 10.6 billion) in revenue, essentially flat year over year. Operating income in the segment increased 4.6 % to ¥ 108.7 billion($ 710 million).

Unit sales increased in Indonesia, the Philippines and Thailand, while demand in Europe and the U. S. softened slightly. Production and shipment suspensions in Vietnam also weighed on volume.

Although revenue remained stable, the company says higher procurement costs, tariff impacts and increased expenses limited margin expansion.

While ATV sales were described as strong, lower ROV sales, tariff impacts and impairment losses on tangible fixed assets drove Yamaha’ s decline in 2025. The low-speed mobility business, including golf cars, also experienced weaker demand in the U. S.( Photo: Yamaha Motor Corp.)

MARINE SEGMENT HIT BY U. S. PWC SLOWDOWN

In Yamaha’ s Marine segment, revenue declined 1.9 % to ¥ 527.6 billion($ 3.45 billion), while operating income dropped 39 % to ¥ 53.6 billion($ 350 million).

Demand for outboard motors in the U. S.— Yamaha’ s primary market— remained roughly in line with the prior year. However, personal watercraft demand declined in the U. S., contributing to lower overall marine revenue and profitability. Higher R & D spending, increased labor costs and the continued impact of U. S. tariffs compounded the decline in segment earnings.

OLV LOSSES WIDEN Yamaha’ s Outdoor Land Vehicle segment— which includes ATVs, side-by-sides and low-speed mobility vehicles— was the company’ s largest profitability drag, according to the company.

Revenue fell 17.2 % to ¥ 148.5 billion($ 970 million), and the segment posted an operating loss of ¥ 39.8 billion, widening from a ¥ 17.4 billion($ 260 million) loss the previous year.

While ATV sales were described as strong, lower ROV sales, tariff impacts and impairment losses on tangible fixed assets drove the decline. The low-speed mobility business, including golf cars, also experienced weaker demand in the U. S.

INVENTORY MANAGEMENT MATTERS Both Polaris and BRP worked to reduce excess network stock, which has helped stabilize dealer turnover and protect margins. Yamaha’ s broader OLV weakness, combined with inventory impairment charges, suggests dealers may have faced slower turns and promotional pressure.

2026 OUTLOOK CALLS FOR REBOUND

Despite continued tariff exposure, Yamaha is forecasting higher revenue and profits in fiscal 2026.

The company expects stronger motorcycle unit sales in emerging markets and growth in outboard motors. In strategic businesses— including Robotics, Smart Power Vehicles and OLV— Yamaha projects improved profitability due to structural reforms and the absence of impairment losses recorded in 2025.

For U. S. powersports dealers, the results underscore continued tariff-related margin pressure and softness in the personal watercraft and side-by-side categories, even as Yamaha’ s core motorcycle business remains resilient globally.

Ducati closed 2025 with global deliveries of 50,895 motorcycles, down 7 % from 2024, as regulatory changes, currency pressures, and broader geopolitical and macroeconomic challenges weighed on the worldwide powersports market, the company reported.

Despite the decline, Ducati leadership said the brand used the year to stabilize operations, protect core segments, and position its dealer network for a stronger 2026 driven by new product introductions and the return of key models delayed by Euro 5 + emissions compliance.

“ 2025 was a complex year, marked by external factors that impacted the global context, but we addressed these with determination,” says Francesco Milicia, Ducati vice president of global sales and after-sales.“ We consolidated our presence in our reference segments and laid the groundwork for an even stronger future.”

Italy remained Ducati’ s largest market with 8,803 motorcycles delivered, down 8 % year over year. The United States ranked second at 7,268 units, posting a 4 % increase, while Germany finished third with 5,759 deliveries, down 12 %. Spain and Austria recorded standout performances, growing 15 % and 14 %, respectively, and Japan posted an 11 % increase. China continued its downturn, declining 31 % compared to 2024.

The Multistrada family led global sales with 13,873 units delivered in 2025, followed by the Panigale range at 10,606 units and the Scrambler family at 5,814 units.

Ducati cited limited availability of the Monster, Hypermotard and DesertX throughout much of the year as key factors impacting volumes. Those models were

Italy remained Ducati’ s largest market with 8,803 motorcycles delivered, down 8 % year over year. The United States ranked second at 7,268 units, posting a 4 % increase, while Germany finished third with 5,759 deliveries, down 12 %.( Photo: Ducati Motor Holding)

temporarily constrained as the manufacturer transitioned them to meet Euro 5 + emissions regulations and are now at dealerships with Ducati’ s new V2 engine.