Toyota Boshoku Corporation (3116) Q4 2026 earnings summary

Executive summary

• Operating profit and revenue rose year-over-year, driven by new product launches, increased production in the Americas, and global cost reductions, but profit excluding prior-year impairment losses declined due to recalls, additional U.S. tariffs, and quality-related expenses.

• Continued upfront investments to support the 2030 Mid-term Plan, focusing on sales expansion, human capital, and R&D.

• Profit attributable to owners of the parent increased 39.2% to ¥23.2 billion year-over-year.

• Comprehensive income surged to ¥64.7 billion from ¥21.9 billion, reflecting significant foreign exchange gains.

• FY2026 annual dividend maintained at 86 yen; FY2027 forecast also 86 yen, aiming for stable long-term returns with DOE above 3%.

Financial highlights

• FY2026 revenue increased 4.2% year-over-year to ¥2,037 billion; operating profit up 27.2% to ¥53.9 billion.

• Profit before income taxes rose 31.5% to ¥61.9 billion; profit attributable to owners up 39.2% to ¥23.2 billion.

• Operating profit margin improved to 2.6% from 2.2% year-over-year.

• Gross profit was ¥207.4 billion, with a gross margin of 10.2%.

• Earnings per share (basic) rose to ¥130.30 from ¥93.65 year-over-year.

Outlook and guidance

• FY2027 revenue forecast at ¥2,120 billion, up 4.1% year-over-year; operating profit projected to rise 48.3% to ¥80.0 billion.

• Profit before income taxes expected to increase 34.0% to ¥83.0 billion; profit attributable to owners forecast to more than double to ¥48.0 billion.

• Earnings per share forecast for FY2027: ¥268.77.

• ROE expected at 9.6% for FY2027; dividend payout ratio to decrease to 32.0%.

• Assumptions include exchange rates of 1USD=¥150, 1EUR=¥180, 1THB=¥4.7, 1CNY=¥21.7.