*"Our operating income for the first half was not what we desired, but we will maintain efforts to strengthen our foundation and recover during the second half of the fiscal year,"* - Yoichi Miyazaki
— Yoichi Miyazaki
03Detailed Report
TM
Toyota Motor Corporation
Period
Q2 2025
CurrencyJPY
Report TypeQuarterly Earnings
GeneratedJun 10, 2026
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Executive Summary
In Q2 2025, Toyota Motor Corporation reported a revenue of ¥11.44 trillion, a 0.09% increase year-over-year, despite facing significant challenges due to production halts from certification issues. The operating income declined by 19.65% year-over-year to ¥1.16 trillion due to lower sales volumes and adverse foreign exchange impacts, while net income saw a steep decline of 55.11% to ¥573.77 billion as the company navigated external pressures. Management remains committed to strengthening its foundations, increasing investments in human resources and growth areas to ¥830 billion for the fiscal year, aiming to restore production volumes in the latter half of the year. Toyota's focus on electrification is evident with planned vehicle sales accounting for over 46% of its electric portfolio as it aims to regain its competitive edge.
The decline in operating income reflects decreased sales due to production issues in North America and Europe, influenced by higher labor costs and rising material prices. Management noted an investment of ¥180 billion in human resources, indicating a strategic focus on enhancing operational capabilities to mitigate future risks.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
11,444.57B
0.09%
-3.32%
Gross Profit
2,438.49B
2.89%
0.41%
Operating Income
1,155.76B
-19.65%
-11.67%
Net Income
573.77B
-55.11%
-56.97%
EPS
42.94
-54.57%
-56.62%
Key Financial Ratios
Gross Profit Margin
Fair
21.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
10.10%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
5.01%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.64%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.67%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.23
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.06
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
14.80x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Undervalued
0.99x
Trading below book value, potential value opportunity or distressed
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