Toyota Tsusho (8015) Q4 2026 earnings summary

Executive summary

• Achieved record-high operating profit of JPY 545.2 billion and net profit of JPY 370.5 billion for FY2025, marking the fifth consecutive year of record profits, driven by robust global automobile production and higher sales in emerging markets.

• Revenue rose 12.1% year-over-year to JPY 11,561.9 billion, with significant contributions from the Circular Economy, Digital Solution, and Africa divisions.

• Operating profit increased 10% year-over-year, surpassing revised forecasts by 3%.

• Announced a new medium-term management plan, "To the Next Dimension 2028," targeting net profit of JPY 450 billion and ROE of 15% by FY2027.

• Shareholder returns included a dividend increase to JPY 125 per share and significant share repurchases, with a total payout ratio of 195.2%.

Financial highlights

• Operating profit: JPY 545.2 billion; Net profit: JPY 370.5 billion for FY2025.

• Revenue: JPY 11,561.9 billion (+12% YoY); Gross profit: JPY 1,264.4 billion (+13% YoY).

• Free cash flow after dividends: JPY 313.7 billion (+JPY 33.0 billion YoY).

• Net DER improved to 0.3x; net interest-bearing debt below JPY 1 trillion.

• Dividend payout increased to JPY 120 for FY2025 and planned JPY 125 for FY2026; share repurchases of JPY 663.6 billion planned.

Outlook and guidance

• FY2026 profit forecast set at JPY 400 billion, with revenue projected at JPY 1,332.0 billion (+5%), factoring in a JPY 10 billion negative impact from Middle East disruptions.

• All divisions expected to achieve positive underlying results, with conservative assumptions for foreign exchange and logistics costs.

• Medium-term plan targets JPY 450 billion net profit, 15% ROE, and JPY 1.2 trillion cumulative investment by FY2027.

• Dividend per share targeted at JPY 125, with a total payout ratio goal of 40% or more through FY2027.