Toyota Boshoku Corporation (3116) Q4 2025 earnings summary

Executive summary

• Revenue remained flat year-over-year at ¥1,954.2 billion in FY2025, as global volume declines offset favorable foreign exchange impacts.

• Operating profit dropped 46.5% to ¥42.3 billion due to impairment losses, lower volumes, and higher overhead costs.

• Profit attributable to owners fell 71.4% to ¥16.7 billion, with EPS at ¥93.65.

• Aims for sustainable growth by enhancing corporate value and practicing CSV management, targeting 2030 as an Interior Space Creator addressing social issues and expanding product range and customer base.

• Comprehensive income decreased significantly, reflecting adverse currency translation and market conditions.

Financial highlights

• FY 2026 sales revenue expected to reach ¥2,000 billion, up 2.3% year-over-year, but operating profit and margin remain below plan; improvement activities ongoing.

• Capital investment and R&D expenses increased versus FY 2026 Mid-term Plan, reflecting upfront investment for FY 2031 goals.

• Earnings per share (basic) declined to ¥93.65 from ¥315.17 year-over-year.

• Free cash flow: ¥60.8 billion, down ¥27.3 billion year-over-year.

• Equity ratio: 40.9% at year-end.

Outlook and guidance

• FY 2026 forecasts increased revenue and profit, with cost impacts from tariffs reflected and net profit forecasted at ¥50.0 billion, EPS at ¥280.07.

• Growth driven by volume increases in Japan, Americas, and Asia, and new product effects.

• 2030 targets include revenue of JPY 2.2 trillion, expanded product range, and increased added value.

• The company expects moderate global economic recovery but notes ongoing inflation and geopolitical risks.