\"Our focus on hydrogen fuel cell technologies alongside electric vehicles is a core component of our strategy to lead in the automotive industry's future.\"
— Akio Toyoda, President
03Detailed Report
TM
Toyota Motor Corporation
Period
Q3 2025
CurrencyJPY
Report TypeQuarterly Earnings
GeneratedJun 10, 2026
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Executive Summary
Toyota Motor Corporation reported solid financial performance for Q3 2025, achieving a revenue of ¥12.39 trillion, which marks a year-over-year growth of 2.91% and a sequential increase of 8.27%. However, gross profit experienced a decline of 11.41% year-over-year, signaling pressures on margins. Despite these challenges, net income surged by an impressive 61.53% year-over-year, driven by effective cost management and operational efficiencies.
Management highlighted a strategic focus on electric and hybrid vehicles, affirming the company’s commitment to innovation. The \"growth trajectory continues to be supported by robust demand across various markets, particularly in North America and Asia,\" they stated, indicating optimism about future sales. Overall, this quarter reflects Toyota's resilience in navigating the dynamic automotive landscape, emphasizing adaptability and strategic foresight in a competitive environment.
The decline in gross and operating profits can be attributed to increased cost pressures and supply chain disruptions. However, the significant increase in net income reflects effective management of operational costs and stronger performance in non-operating income streams, notably foreign exchange gains.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
12,391.10B
2.91%
8.27%
Gross Profit
2,378.91B
-11.41%
-2.44%
Operating Income
1,215.27B
-27.70%
5.15%
Net Income
2,193.28B
61.53%
282.26%
EPS
167.26
66.23%
289.52%
Key Financial Ratios
Gross Profit Margin
Weak
19.20%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
9.81%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Good
17.70%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.32%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
6.11%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.22
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.10
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
4.70x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.15x
Price-to-book ratio reasonable for profitable companies
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