Toyota raises full-year net profit forecast

Toyota has raised its full-year net profit forecast by ¥250 billion, to ¥3.25 trillion, citing the yen's continued depreciation and the company's progress in establishing alternative export routes to the Middle East. However, the forecast remains 15.5% below the previous year's profit due to tensions in the region. For fiscal 2026, which ends next March, Toyota has increased its operating profit projection from ¥3 trillion to ¥3.4 trillion, a 9.7% decrease from the prior year.

The weaker yen contributed ¥480 billion to the improved profit projection, while the decline in exports and rising material costs due to the Middle East situation offset ¥160 billion, resulting in a net gain of ¥510 billion.

The company has also adjusted its foreign exchange rate assumptions to ¥160 per dollar and ¥181 per euro. Toyota's annual revenue forecast has been raised from ¥51 trillion to ¥54 trillion, a 6.5% increase from the previous year. Its global vehicle sales projection, including those at subsidiary Daihatsu, remains unchanged at 11.18 million units.

While sales in North America, where hybrid vehicle sales are strong, have been higher than anticipated, sales in Asia remain weaker. The latest projections do not account for the impact of a recent earthquake in Kumamoto Prefecture, as Toyota is still assessing the situation. In the April-June quarter, the company's net profit increased by 75.6% to ¥1.477 trillion, marking the first quarterly profit growth in two years due to a weaker yen.

However, quarterly operating profit declined by 8.8% to ¥1.063 trillion, with revenue rising 10.4% to ¥13.525 trillion. Global vehicle sales decreased by 4.1% to 2,714,000 units, primarily due to a decline in sales in the Middle East.