Toyota Motor ups full-year outlook despite bigger tariff hit
By Benjamin Chiou
Date: Wednesday 05 Nov 2025
(Sharecast News) - Toyota Motor increased fiscal second-quarter profits and announced an hike in full-year targets on Wednesday, but shares declined after the Japanese auto giant pointed to a bigger-than-expected hit from US trade tariffs.
The company said it now expects the trade levies to hit full-year operating profits by JPY1.45trn ($9.4bn) over the 12 months to 31 March 2026, up from an earlier estimate of JPY1.40trn.
However, vehicle sales are also expected to now rise 2.6% year-on-year to 11.3m, ahead of earlier guidance of 11.2m.
As a result, revenue guidance has been lifted to JPY49.0trn from JPY48.5trn, representing a 2.0% increase for the year, while net profits are expected to be JPY2.93trn, down 38.5% but ahead of the previous JPY2.66trn target.
"Despite the impact of US tariffs, we have continued to build upon our improvement efforts such as increasing sales volume, improving costs, and expanding value chain profits," the company said in a statement.
Toyota delivered 4.78m vehicles to customers in the first half overall, up 5.0% on last year, with sales declines in Asia (excluding Japan) outweighed by growth elsewhere.
The company's largest region, Europe, saw a 13.8% increase in deliveries to 1.53m, while sales volumes also increased strongly across Japan and North America.
As a result, sales revenues rose to JPY24.63trn, up from JPY23.28trn the year before.
However, a slip in operating margins to 8.1% from 10.6% meant that first-half net profits fell to JPY2.48trn from JPY2.73trn.
Nevertheless, net profits in the second quarter alone were significantly higher than the previous year, rising 62% to JPY932bn, easily topping a JPY801bn estimate by analysts.
The stock finished the session down 3.7% at JPY3,040.
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