Toyota reported first-quarter net profit of 1.48 trillion yen ($9.4 billion) for the three months ended June 30, up 76% from 841 billion yen in the same period a year earlier, as a weak yen and gains in financial income lifted results even as vehicle sales dipped.
First-quarter revenue came in at 13.5 trillion yen ($85 billion), reflecting a 10% increase from the same period the prior year, the company said. Toyota stock closed about 1.5% lower in Tokyo after the results were released.
The weak yen was a central driver of the quarter’s earnings. The U.S. dollar traded at roughly 160 yen during the April-June period, compared with about 145 yen during the same quarter a year earlier. That currency shift added 345 billion yen ($2.2 billion) to Toyota’s quarterly operating income, the company said. Operating income for the quarter came in at 1.06 trillion yen, down 8.8% from the prior year, as higher expenses offset the currency tailwind.
Toyota raised its full-year revenue forecast to 54 trillion yen ($342 billion), up from a prior projection of 51 trillion yen and up 6.5% from last fiscal year’s 50.7 trillion yen. The automaker also lifted its full-year net profit forecast to 3.25 trillion yen ($20.6 billion), up from a prior projection of 3 trillion yen, though that figure remains 15.5% below the 3.85 trillion yen recorded in fiscal 2026, the company said.
The company sold 2.39 million vehicles globally in the first quarter, down from 2.41 million in the year-earlier period. Overseas sales fell while Japan sales rose, the company said. For the full fiscal year, Toyota projected total vehicle sales of 9.7 million units, up from 9.595 million the prior year.
Toyota’s hybrid lineup continued to see robust consumer interest across several regions, Takanori Azuma, Toyota’s chief officer for accounting, told reporters at an earnings briefing, according to ABC News. Models including the Camry and RAV4 were selling well in the U.S., while the Urban Cruiser and Innova Hycross were among the popular models in India, Takanori Azuma said.
Toyota also announced a share buyback program of up to 1 trillion yen, covering as much as 4.2% of outstanding shares, according to The Wall Street Journal. The company lowered its estimate for the drag from war-related disruptions on annual operating profit to 510 billion yen from a prior forecast of 670 billion yen.
A 7.1 magnitude earthquake that struck Kumamoto in southwestern Japan on July 28 halted production at Toyota’s facilities in the Kyushu region, according to ABC News. Those plants were preparing to resume production later in the week, Takanori Azuma said.