Subaru (TYO:7270) Subaru remains committed to achieving at least a 10% return on equity even as U.S. tariffs weigh heavily on profits, Chief Financial Officer Shinsuke Toda told Nikkei on Friday.

"We will overcome this difficult situation by improving our profitability," Toda said, adding that the automaker's ROE target "remains unchanged," according to the report.

Subaru expects U.S. tariffs to cut profit by 210 billion yen in the year ending March 2026, with net profit projected to fall 53% to 160 billion yen. ROE is seen dropping to 5.9% from 12.8% a year earlier, below its cost of capital in the mid-6% range, the report said.

To offset the impact, Subaru plans to boost North American sales with new models, including three hybrids by year-end, following the launch of a hybrid Forester. "We will boost unit sales by introducing attractive vehicles with competitive prices," Toda said, according to the report.

Subaru is also reviewing its 1.5 trillion yen electrification plan amid slower EV demand and plans to unveil a revised roadmap this year. The company will maintain its annual dividend at 115 yen per share and continue a 50 billion yen share buyback, keeping a 40% total payout ratio, the report said.

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