Toyota hikes annual outlook and unveils $89 billion shareholder return plan
TM•Toyota raised its annual operating profit forecast 15% to 3.9 trillion yen and reported a 34% rise in July-September operating income. It also plans to return up to 14 trillion yen ($89 billion) to shareholders by March 2031.
1. Higher forecast and returns
Toyota lifted its operating profit forecast for the year ending in March to 3.9 trillion yen ($24.6 billion), up 15% from its previous outlook. July-September operating income rose 34%, beating forecasts. The company said it plans to return up to 14 trillion yen ($89 billion) to shareholders by March 2031, twice the 7 trillion yen returned in the preceding five years.
2. Hybrid sales support results
Toyota said robust hybrid sales, a weaker yen and lower U.S. tariffs helped offset falling sales in China. It said its focus on petrol-electric hybrids has benefited the company as fuel costs have surged, while competition from Chinese electric vehicle makers remains a headwind. Chief Financial Officer Yoichi Miyazaki said Toyota had halted its market-share decline in China and was starting to regain ground.
3. Robotics and investment plans
Toyota said it would establish a robotics business serving manufacturers and other industries, and make it a future growth pillar. It plans to spend at least 22 trillion yen on research and development and capital investment through fiscal 2030, and reduce net liquid assets to 7 trillion yen by March 2031 from end-March levels. Its shares gained 17%, their biggest one-day rise in almost 40 years.
