Toyota Lifts Its Profit Outlook as North America Returns to Profit

Higher profit from fewer cars

Toyota earned more while selling less. Toyota and Lexus sales fell to 5.06 million vehicles in the six months, from 5.27 million a year earlier, and group retail sales including Daihatsu dropped 4.6% to 5.381 million. Part of that fall comes from Hino Motors leaving the consolidated figures. The yen averaged 159 to the US dollar against 146 a year before, which lifted the value of overseas earnings. Rising raw material costs took 465 billion yen out of the result.

Hybrids did much of the work. Electrified vehicles, a group that covers hybrids, plug-in hybrids, battery electric and fuel-cell cars, reached 2.81 million units, or 55.6% of sales. Models such as the Toyota RAV4 and Camry have made the hybrid version the default choice in many markets.

Where Toyota made and lost money

Japan remained the profit engine with 1.26 trillion yen of operating income. Europe contributed 207.7 billion yen and Asia 434 billion yen, slightly down. North America turned around through price increases and a smaller tariff impact. China was the weak spot: retail sales fell from 914,000 to 685,000, and operating income from consolidated subsidiaries there nearly halved to 65 billion yen.

The new forecast

For the year to March 2027, Toyota now expects operating profit of 3.9 trillion yen and net profit of 3.57 trillion yen (about US$22.6 billion), up from 3.4 and 3.25 trillion yen. Revenue guidance was trimmed from 54 to 53.5 trillion yen. The sales outlook moved down too: the Toyota and Lexus retail target is now 10.3 million, from 10.5 million, with North America cut to 1.74 million. Toyota plans 5.01 million hybrids and 463,000 battery electric cars this financial year. The company also raised its dividend by 5 yen to 100 yen per share and confirmed that a new Toyota Robotics division starts on 1 January 2027.

What it means for buyers

Toyota still expects about 1 trillion yen of higher material costs this year, so price rises remain possible, but the forecast shows a maker with room to keep investing in hybrids. Buyers interested in the brand's line-up can browse the Toyota catalogue or compare options in the best hybrid cars guide.