Toyota Motor (7203) Q4 2025 earnings summary

Executive summary

• FY2025 operating income was JPY 4.8 trillion, supported by price revisions and value chain expansion, despite production challenges and increased expenses.

• Sales revenue for FY2025 reached JPY 48.36 trillion, with net income at JPY 4.77 trillion; electrified vehicles accounted for 46.2% of sales.

• FY2026 operating income is forecast at JPY 3.8 trillion, with net income at JPY 3.1 trillion, reflecting U.S. tariff impacts and continued investment in new profit pillars.

• Dividend per share increased to JPY 90 for FY2025 (+15 YoY), with FY2026 forecast at JPY 95, maintaining a stable dividend policy.

• Electrified vehicle sales surged, led by strong HEV growth, and comprised 46.2% of total sales.

Financial highlights

• FY2025 sales revenues rose to JPY 48.04 trillion (+2.94 trillion YoY), while operating income declined to JPY 4.80 trillion (-0.56 trillion YoY).

• Net income attributable to Toyota was JPY 4.77 trillion (9.9% margin), down from JPY 4.94 trillion (11.0% margin) YoY.

• Consolidated vehicle sales were 9.36 million units, 99.1% of the previous year.

• Operating income margin was 10.0%, down from 11.9% the previous year.

• Dividend for FY2025 increased to JPY 90 per share, with FY2026 forecast at JPY 95 per share.

Outlook and guidance

• FY2026 sales revenues are projected at JPY 48.5 trillion (+1.0%), with operating income expected to decrease to JPY 3.8 trillion (7.8% margin).

• Net income forecast for FY2026 is JPY 3.1 trillion (6.4% margin), reflecting cost pressures and tariff impacts.

• Vehicle sales expected at 9.8 million units (104.7% YoY), with electrified vehicles projected at 5.18 million units (49.8% of total).

• ROE target set at 20% to measure progress toward mobility company transformation.

• FY2026 outlook factors in negative impact from U.S. tariffs and assumes average exchange rates of 145 yen/USD and 160 yen/EUR.