Toyota Motor (7203) Q4 2025 earnings summary

Executive summary

• FY2025 operating income was JPY 4,795.5 billion, supported by price revisions and value chain profit expansion despite production challenges.

• Electrified vehicles accounted for 46.2% of sales, with strong HEV growth and BEV sales up 123.9% YoY.

• FY2026 operating income is forecast at JPY 3,800.0 billion and net income at JPY 3,100.0 billion, amid tariff impacts and continued investment in growth pillars.

Financial highlights

• FY2025 sales revenue was JPY 48,036.7 billion (+JPY 2,941.3 billion YoY); operating income fell JPY 557.3 billion to JPY 4,795.5 billion.

• Net income attributable to Toyota was JPY 4,765.0 billion, with a 9.9% margin, down from JPY 4,944.9 billion and an 11.0% margin.

• Consolidated vehicle sales were 9.36 million units (99.1% of prior year); Toyota and Lexus sales were 10.27 million units (99.7%).

• Cost and marketing reductions of JPY 510 billion helped offset volume declines and weaker model mix.

Outlook and guidance

• FY2026 sales revenue is forecast at JPY 48,500.0 billion and operating income at JPY 3,800.0 billion (7.8% margin).

• FY2026 net income is forecast at JPY 3,100.0 billion (6.4% margin); guidance includes a JPY 180 billion U.S. tariff impact for April–May 2025.

• Vehicle sales are forecast at 9.8 million units, including 5.18 million electrified vehicles, 49.8% of total sales.