Toyota Q4 Earnings Surpass Estimates but Decline Year Over Year

Toyota TM reported fiscal fourth-quarter 2025 earnings per share of $3.39, which surpassed the Zacks Consensus Estimate of $2.92 but declined from the year-ago quarter’s earnings of $4.99. Consolidated revenues came in at $81.09 billion, which beat the consensus mark of $78.47 billion and also grew from $74.56 billion in the year-ago quarter.  

Toyota had cash and cash equivalents (non-financial services businesses) of ¥6.09 trillion ($41.75 billion) as of March 31, 2025. Long-term debt (non-financial services businesses) was ¥1.55 trillion ($10.6 billion), down from ¥1.93 trillion as of March 31, 2024.

TM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Toyota Motor Corporation Price, Consensus and EPS Surprise

Toyota Motor Corporation price-consensus-eps-surprise-chart | Toyota Motor Corporation Quote

Segmental Results       

The Automotive segment’s net revenues for the fiscal fourth quarter increased 8.2% year over year to ¥10.85 trillion ($71.2 billion), surpassing our estimates of ¥10.24 trillion. Operating profit came in at ¥866.3 billion ($5.68 billion), which declined 3.9% from the year-ago period but exceeded our estimate of ¥837.8 billion.

The Financial Services segment’s net revenues rose 50% from the prior-year quarter to ¥1.41 trillion ($9.27 billion). The metric outpaced our forecast of ¥954.2 billion. The segment registered an operating income of ¥187.2 billion ($1.22 billion), which rose 22% from fourth-quarter fiscal 2024 and surpassed our estimate of ¥135.5 billion.

All Other businesses’ net revenues totaled ¥400.7 billion ($2.62 billion) in the reported quarter, which increased 3.8% year over year and topped our projection of ¥394.2 billion. The unit generated an operating profit of ¥56.5 billion ($370 million), which rose 10.3% year over year and topped our estimate of ¥46.2 billion.

FY26 Guidance

For fiscal 2026, Toyota projects total retail vehicle sales of 11.2 million units, indicating an increase from 11.01 million units sold in fiscal 2025. Fiscal 2026 sales are expected to total ¥48.5 trillion compared with ¥48.03 trillion recorded in fiscal 2025. Operating income is projected to be ¥3.8 trillion, indicating a contraction of 20.8% year over year.

Pretax profit is estimated to be ¥4.4 trillion, implying a decline from ¥6.41 trillion generated in fiscal 2025. R&D expenses are envisioned to be ¥1.37 trillion compared with ¥1.32 trillion spent in fiscal 2025. Capex is forecasted to be ¥2.3 trillion compared with ¥2.13 trillion spent in fiscal 2025.

Key Auto Releases

General Motors GM reported first-quarter 2025 results on April 29. It posted adjusted earnings of $2.78 per share, which surpassed the Zacks Consensus Estimate of $2.69. The bottom line also increased from the year-ago quarter’s $2.62. Revenues of $44.02 billion beat the Zacks Consensus Estimate of $42.5 billion and increased from $43.01 billion recorded in the year-ago period.General Motors had cash and cash equivalents of $20.57 billion as of March 31, 2025. The long-term automotive debt at the end of the quarter was $13.44 billion.

Ford F reported first-quarter 2025 results on May 5. It posted adjusted earnings per share of 14 cents, which surpassed the Zacks Consensus Estimate of breakeven earnings but declined from 49 cents recorded in the year-ago quarter. The company’s consolidated first-quarter revenues came in at $40.66 billion, down 5% year over year. F’s total automotive revenues came in at $37.42 billion, topping the Zacks Consensus Estimate of $35.48 billion but decreasing from $39.89 billion generated a year ago. Ford had cash and cash equivalents of $20.9 billion as of March 31, 2025.

Honda HMC reported fiscal fourth-quarter 2025 results on May 13. It posted earnings of 18 cents per share for fourth-quarter fiscal 2025, missing the Zacks Consensus Estimate of 72 cents. The bottom line also declined from the year-ago profit of 99 cents per share. Quarterly revenues totaled $35.1 billion, lagging the Zacks Consensus Estimate of $35.6 billion as well as the year-ago period figure of $36.5 billion. Honda’s cash and cash equivalents were ¥4.53 trillion ($31.04 billion) as of March 31, 2025.

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This article originally published on Zacks Investment Research (zacks.com).

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