Toyota raises full-year net profit forecast

Toyota on Tuesday revised up its full-year net profit forecast from ¥3 trillion to ¥3.25 trillion, reflecting the yen’s further weakening, as well as progress in securing alternative export routes to the Middle East.

The revised figure is still down 15.5% from the previous year’s result due to the fallout from tensions in the Middle East.

For fiscal 2026, which ends next March, the leading Japanese automaker also upgraded its operating profit projection from ¥3 trillion to ¥3.4 trillion, down 9.7% from the previous year.

The weaker yen helped improve the profit projection by ¥480 billion, and the impact of declining exports and rising material prices due to the Middle East situation was estimated to be ¥160 billion lower, at ¥510 billion.

Considering the yen’s recent movements, Toyota revised its assumed foreign exchange rates to ¥160 per dollar and ¥181 per euro.

Toyota’s annual revenue forecast was raised from ¥51 trillion to ¥54 trillion, up 6.5% from the previous year. Its projection for global vehicle sales, including those at subsidiary Daihatsu, was kept unchanged at 11.18 million units, as a higher projection for sales in North America, where sales of hybrid vehicles are robust, offset a weaker projection in Asia.

The latest projections did not reflect the impact of the suspension of production at some plants following a powerful earthquake that struck Kumamoto Prefecture last week, as the company is scrutinizing the impact.

In April-June, the company’s consolidated net profit jumped 75.6% from a year before to ¥1.477 trillion, the first increase for the quarter in two years, on the back of a weaker-than-expected yen.

Meanwhile, quarterly operating profit declined 8.8% to ¥1.063 trillion. Revenues rose 10.4% to ¥13.525 trillion.

Global vehicle sales decreased 4.1% to 2,714,000 units, as sales in the Middle East decreased.