Toyota’s Fiscal 2025 Results:
Revenue Rises, But Net Profit Declines
Negative Outlook Due to Middle East Instability and Other Factors

Toyota Motor Corporation, the world's leading automobile manufacturer, recorded its highest-ever revenue for the fifth consecutive year in fiscal 2025 (April 2025–March 2026). It became the first Japanese company to achieve annual sales exceeding 50 trillion yen (approximately 46.7 trillion KRW).


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According to Kyodo News and Nihon Keizai Shimbun (Nikkei) on May 8, Toyota’s revenue for fiscal 2025 reached 50.6849 trillion yen (about 47.4 trillion KRW), up 5.5% from the previous year.


Strong sales of hybrid vehicles drove the increase in revenue. However, due to the impact of U.S. tariffs, consolidated net profit fell by 19.2% to 3.848 trillion yen (about 36 trillion KRW).


Toyota expects its revenue for the next fiscal year (April 2026–March 2027) to increase by 0.6% year-on-year to 51 trillion yen (about 47.7 trillion KRW).


In contrast, consolidated net profit is forecast to drop sharply by 22.0% from the previous year, reaching only 3 trillion yen (about 28 trillion KRW). If this occurs, it will mark a decline for the third consecutive year.


The expected decrease in profit due to instability in the Middle East, such as the war in Iran and logistics disruptions caused by the blockade of the Strait of Hormuz, amounts to 670 billion yen (about 6.3 trillion KRW).


However, ongoing yen depreciation could increase related profits by 235 billion yen (about 2.2 trillion KRW), according to projections.


The Asahi Shimbun predicts that Toyota will sell 9.6 million vehicles in fiscal 2026, a 0.1% increase from the previous year. However, profits are expected to decrease compared to the previous year.



Toyota Vice President Yoichi Miyazaki stated that he takes the earnings results seriously, analyzing that the slow pace of necessary business structure changes from a medium- to long-term perspective is a contributing factor.


This content was produced with the assistance of AI translation services.

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