Panasonic energy unit profit jumps 47% on AI boom despite EV headwinds

Published 30/07/2025, 10:20
Panasonic energy unit profit jumps 47% on AI boom despite EV headwinds

Investing.com -- Panasonic (OTC:PCRFY) reported a strong first-quarter performance in its battery-making energy unit on Wednesday, with operating profit rising 47% year-on-year to 31.9 billion yen ($215.6 million).

The Japanese electronics manufacturer attributed the growth to the artificial intelligence investment boom, which helped offset negative impacts from U.S. tariffs and the termination of electric vehicle tax credits.

In a presentation slide, Panasonic acknowledged that "concerns remain over a further slowdown in EV demand due to U.S. tariff policies and termination of IRA 30D tax credit." However, the company noted that demand for data centre-bound energy storage systems is "growing more than anticipated."

The energy unit, which supplies batteries to Tesla (NASDAQ:TSLA) and other electric vehicle manufacturers, maintained its full-year operating profit forecast at 167 billion yen for the fiscal year ending March 2026.

This positive performance comes after Panasonic Holdings announced in May that it would cut 10,000 jobs and expected to book restructuring costs of 130 billion yen as part of efforts to improve overall group profitability. At that time, the company indicated it did not expect to book any restructuring costs in its energy business.

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