Company Reports

Toyota's vision includes making compact cars a priority for emerging markets with attractive design but lower costs, having designers and engineers as equal partners, and increasing scale from the Toyota New Global Architecture, which develops vehicles using common parts, something critical for Toyota to keep pace with other automakers.

Toyota’s fiscal first-quarter consolidated revenue was up 10% year on year with automobile revenue edging up 9% thanks to an increase in vehicle sales volume in Japan and Asia. With continued sales and profitability pressure in China, profit for China joint ventures slumped 31% year on year.

Toyota’s fiscal fourth-quarter consolidated revenue was up 2% year on year, with automobile revenue edging up 3%, thanks to an increase in vehicle sales volume in Japan. With continued sales and margin pressure in China, profit for China joint ventures declined 14% year on year.

Toyota's vision includes making compact cars a priority for emerging markets with attractive design but lower costs, having designers and engineers as equal partners, and increasing scale from the Toyota New Global Architecture, which develops vehicles using common parts, something critical for Toyota to keep pace with other automakers.

Toyota's vision includes making compact cars a priority for emerging markets with attractive design but lower costs, having designers and engineers as equal partners, and increasing scale from the Toyota New Global Architecture, which develops vehicles using common parts, something critical for Toyota to keep pace with other automakers.

Toyota’s fiscal third-quarter consolidated revenue was up 9% year on year, with automobile revenue edging up 7% thanks to an increase in vehicle sales volume in the US and Japan. With continued sales and profitability pressure in China, profit for China joint ventures declined 12% year on year.

Toyota’s fiscal second-quarter consolidated revenue was up 8% year over year, with automobile revenue edging up 7% thanks to an increase in vehicle sales volume in the US market. With mild sales recovery in joint ventures due to a low base, China's profit further improved on cost-reduction efforts.

Toyota’s fiscal first-quarter consolidated revenue was up 4% year over year, thanks to higher vehicle sales across all major markets globally. However, the tariff impact sent North America into an operating loss.

Toyota's vision includes making compact cars a priority for emerging markets with attractive design but lower costs, having designers and engineers as equal partners, and increasing scale from the Toyota New Global Architecture, which develops vehicles using common parts, something critical for Toyota to keep pace with other automakers.

Toyota’s fiscal fourth-quarter (ended March 2025) revenue was up 12% year over year, with automobile revenue edging up 8% thanks to an increase in vehicle sales volume. Automobile segment gross margin, however, was weaker than we expected.

Toyota's vision includes making compact cars a priority for emerging markets with attractive design but lower costs, having designers and engineers as equal partners, and increasing scale from the Toyota New Global Architecture, which develops vehicles using common parts, something critical for Toyota to keep pace with other automakers.

Shares of Japanese automakers under our coverage were under pressure, slipping 2%-3% on March 27, 2025, as US President Donald Trump signed a proclamation implementing a 25% tariff on US auto imports, all passenger cars, and light trucks not made in the US, effective on April 2.

Toyota's vision includes making compact cars a priority for emerging markets with attractive design but lower costs, having designers and engineers as equal partners, and increasing scale from the Toyota New Global Architecture, which develops vehicles using common parts, something critical for Toyota to keep pace with other automakers.

Toyota’s December-quarter revenue grew 3% year over year, with automobile revenue edging up 2%. Operating income fell 28% year over year while operating margin narrowed 420 basis points to 9.8%.

Toyota's vision includes making compact cars a priority for emerging markets with attractive design but lower costs, having designers and engineers as equal partners, and increasing scale from the Toyota New Global Architecture, which develops vehicles using common parts, something critical for Toyota to keep pace with other automakers.

Toyota's fiscal second-quarter revenue was flat year over year, with a decline in automobile sales offset by financial service income. Operating income dropped 20% year over year, while operating margin narrowed 250 basis points to 10%. With this note, we transfer coverage of Toyota to Vincent Sun.

Toyota started fiscal 2025 with a good first quarter that grew revenue year over year by 12.2% and operating income by 16.7% to over JPY 1.3 trillion. Operating margin rose by 50 basis points to 11.1%. However, the stock fell 8.5% on Aug. 1 Tokyo trading and is down over 5.5% at the start of Aug. 2 trading. This reaction seems too punitive given EPS of JPY 98.99 increased 2.3% and beat the LSEG consensus of JPY 90.67. It’s possible investors were hoping for an even better quarter and an increase in full-year guidance (which was instead maintained) given strong US demand for the company’s vehicles. Free cash flow could be responsible as well. We calculate that, including additions for equipment leased to others, it declined to negative JPY 750.1 million from JPY 263.5 million, with operating cash flow falling 49.7%. However, most of the operating cash flow decrease is from cash paid for taxes that nearly tripled rather than a profit problem from the auto business.

Toyota's vision includes making compact cars a priority for emerging markets with attractive design but lower costs, having designers and engineers as equal partners, and increasing scale from the Toyota New Global Architecture, which develops vehicles using common parts, something critical for Toyota to keep pace with large automakers and Tesla. We think giving local designers more control is letting Toyota make more exciting vehicles.

Toyota's vision includes making compact cars a priority for emerging markets with attractive design but lower costs, having designers and engineers as equal partners, and increasing scale from the Toyota New Global Architecture, which develops vehicles using common parts, something critical for Toyota to keep pace with large automakers and Tesla. We think giving local designers more control is letting Toyota make more exciting vehicles.

Toyota finished fiscal 2024 with excellent year-over-year profit growth despite lower unit volumes in Japan following Daihatsu’s safety scandal. We are raising our per share fair value estimates to JPY 3,300 from JPY 3,000 and to $211 from $200 on the time value of money, higher book value for the finance arm, and a weaker average yen aiding profits over our five-year explicit forecast period. Fourth-quarter operating income rose 77.5% to over JPY 1.1 trillion with operating margin up 450 basis points to 10%. A nearly 13% weaker yen against the dollar boosted profit by JPY 200 billion and overall currency benefits to profit growth were JPY 305 billion, nearly two thirds of the JPY 485.7 billion profit increase. Lower material costs and cost-reduction efforts contributed another JPY 185 billion of profit increase and more than offset JPY 100 billion of higher labor costs.