Toyota Industries (6201) Q2 2026 earnings summary

Executive summary

• Second quarter profit declined year-over-year due to engine certification costs, U.S. tariffs, and provisions for a U.S. class-action lawsuit, despite a 2% rise in net sales to ¥2,058.7 billion.

• Operating profit dropped 70% to ¥37.5 billion, and profit before income taxes fell 44% to ¥107.1 billion; profit attributable to owners decreased 38% to ¥91.1 billion.

• Comprehensive income rebounded to ¥512.6 billion from a prior-year loss, driven by recovery in financial asset values.

Financial highlights

• FY2026 2Q net sales rose 2.1% year-over-year to ¥2,058.6 billion.

• Gross profit for the quarter was ¥450.8 billion, down from ¥478.0 billion year-over-year.

• Earnings per share (basic and diluted) declined to ¥303.22 from ¥477.47 in the prior year.

• Cash and cash equivalents increased 25% from the previous fiscal year-end to ¥474.4 billion.

• Net cash provided by operating activities surged to ¥196.6 billion from ¥5.4 billion year-over-year.

Outlook and guidance

• FY2026 full-year net sales forecast at ¥4,000.0 billion, down 2.1% from prior year; operating profit forecast at ¥100.0 billion, a 54.9% decrease year-over-year; profit attributable to owners projected at ¥180.0 billion, down 31.4%.

• Profit before income taxes forecast at ¥230.0 billion, a 34.6% decrease.

• Forecasts revised downward due to settlement and customer support costs related to the U.S. class-action lawsuit and engine certification issue.

• Projections based on exchange rates of ¥145/USD and ¥165/EUR after Q3.

• Lower unit sales expected, but weaker yen supports sales; profit outlook reduced due to ongoing cost pressures.