Toyota reports a 49% decrease in operating profit

Toyota Motor announced on Friday a 49% decrease in operational profit in the fourth fiscal quarter, reaching 569.4 billion yen, well below analysts' estimate of 813.28 billion yen. The company's revenues amounted to 12.6 trillion yen, in line with market expectations.

This marks the fourth consecutive quarter of annual decline in operational profit, and vehicle sales dropped to 2.29 million units, compared to 2.36 million last year. Toyota has lowered its operational profit forecast for the fiscal year ending in March 2027 by over 20%, now estimating 3 trillion yen.

The company is facing challenges such as U.S. tariffs, competition from Chinese electric vehicle manufacturers, and certification issues. Additionally, research and development expenses have reached a record level. Toyota's shares fell by 2.18% on the Tokyo Stock Exchange.