Toyota Industries (6201) Q2 2026 earnings summary

Executive summary

• Second quarter net sales rose to ¥2,058.6 billion, but operating profit dropped 70% to ¥37.5 billion due to engine certification costs, U.S. tariffs, and a large provision for a U.S. class-action lawsuit.

• Profit before income taxes fell 44% to ¥107.1 billion, and 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.

• Full-year profit guidance was revised downward, with net sales supported by a weaker yen but profitability pressured by higher costs and lower unit sales.

• Settlement costs and customer response expenses related to the U.S. forklift engine certification issue, as well as U.S. tariffs, led to higher revenue but lower profit.

Financial highlights

• Net sales for 2Q FY2026 rose 2.1% year-over-year to ¥2,058.6 billion; operating profit dropped 70.3% to ¥37.5 billion.

• Profit before income taxes: ¥107.1 billion; net profit: ¥91.1 billion.

• Total assets: ¥10,149.1 billion; total equity: ¥5,432.8 billion; equity ratio: 52.8%.

• Capital investment: ¥91.9 billion; depreciation: ¥58.1 billion.

• Cash and cash equivalents increased 25% to ¥474.4 billion; net cash from operating activities surged to ¥196.6 billion.

Outlook and guidance

• Full-year FY2026 forecasts: net sales of ¥4,000.0 billion (+2.1%), operating profit of ¥100.0 billion (–54.9%), pre-tax profit of ¥230.0 billion (–34.6%), and net profit of ¥180.0 billion (–31.4%).

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

• US tariffs expected to reduce full-year profit by ¥25 billion, mainly impacting the industrial vehicle segment.

• Exchange rate assumptions for Q3 onward: ¥145/USD and ¥165/EUR.

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