Toyota raises annual profit outlook by 15% as hybrid demand, weak yen boost earnings

Toyota Motor on Thursday reported its first increase in quarterly operating profit in six quarters and raised its full-year earnings outlook by 15%, as a weaker yen and strong demand for hybrid vehicles helped offset declining sales in China and the Middle East.

According to Reuters, the world's largest automaker now expects operating profit of 3.9 trillion yen ($24.6 billion) for the financial year ending March 2027, compared with its previous forecast of 3.4 trillion yen.

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The upgraded outlook reflects support from favourable currency movements and resilient demand for hybrid vehicles, which helped cushion the impact of weaker sales in key markets, including China and the Middle East.

Toyota's operating profit for the July-September quarter surged 34% year-on-year to 1.13 trillion yen, marking a turnaround after five consecutive quarters of decline.

The quarterly operating profit also comfortably exceeded market expectations. Analysts surveyed by LSEG had projected a median operating profit of 992 billion yen.

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The results highlight the automaker's ability to navigate challenging market conditions through its hybrid vehicle portfolio and favourable foreign exchange movements, despite pressure on sales in some major overseas markets.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)