Toyota(TM) - 2026 Q3 - Quarterly Report

Financial Performance - Consolidated sales revenues for the first nine months of FY2026 reached 38,087.6 billion yen, an increase of 6.8% compared to FY2025[4] - Operating income for the same period decreased by 13.1% to 3,196.7 billion yen, while net income attributable to Toyota Motor Corporation fell by 26.1% to 3,030.8 billion yen[4] - The forecast for full-year sales revenues is 50,000.0 billion yen, reflecting a 4.1% increase from FY2025, while net income is projected to decrease by 25.1% to 3,570.0 billion yen[7] - Net income attributable to Toyota Motor Corporation decreased to 3,030,891 million yen in the first nine months of FY2026 from 4,100,389 million yen in FY2025[37] - Earnings per share attributable to Toyota Motor Corporation decreased to 232.55 yen in the first nine months of FY2026 from 307.95 yen in FY2025[37] - For the first nine months ended December 31, 2024, Toyota reported a net income of ¥4,079,342 million, while for the same period in 2025, net income decreased to ¥3,144,293 million, representing a decline of approximately 22.9%[43]. - Total comprehensive income for the first nine months ended December 31, 2024 was ¥3,873,742 million, compared to ¥4,493,655 million for the same period in 2025, indicating a decrease of about 13.8%[41][43]. Sales and Production - Consolidated vehicle unit sales increased by 301 thousand units, or 4.3%, totaling 7,302 thousand units in the first nine months of FY2026[15] - Vehicle unit sales in Japan increased by 62 thousand units, or 4.3%, totaling 1,516 thousand units in the first nine months of FY2026[15] - Vehicle production for the first nine months of FY2026 was 6,984 thousand units, a slight increase from 6,715 thousand units in FY2025[61] - Total vehicle sales for the first nine months of FY2026 reached 7,302 thousand units, an increase from 7,000 thousand units in FY2025, reflecting a growth of approximately 4.3%[61] Regional Performance - Sales revenues in North America increased by 1,743.8 billion yen, or 12.1%, to 16,145.4 billion yen in the first nine months of FY2026 compared to FY2025[23] - Sales revenues in Europe increased by 425.5 billion yen, or 9.4%, to 4,945.2 billion yen in the first nine months of FY2026 compared to FY2025[24] - Sales revenues in Asia increased by 139.8 billion yen, or 2.1%, to 6,933.2 billion yen in the first nine months of FY2026 compared to FY2025[25] - Sales revenues in other regions increased by 133.0 billion yen, or 4.0%, to 3,488.5 billion yen in the first nine months of FY2026 compared to FY2025, with operating income increasing by 78.5 billion yen, or 43.7%[26] Assets and Liabilities - Total assets as of the third quarter of FY2026 were 102,344.6 billion yen, with total shareholders' equity at 39,992.5 billion yen, representing a ratio of 38.1%[5] - Total assets increased by 8,743.2 billion yen, or 9.3%, to 102,344.5 billion yen at the end of FY2026 third quarter compared to the end of FY2025[29] - Liabilities increased by 5,629.6 billion yen, or 9.9%, to 62,352.0 billion yen at the end of FY2026 third quarter compared to the end of FY2025[29] Cash Flow and Dividends - Net cash flows from operating activities increased by 946.0 billion yen to 3,769.7 billion yen for the first nine months of FY2026 compared to FY2025[30] - Net cash used in investing activities increased by 828.6 billion yen to 4,351.8 billion yen for the first nine months of FY2026 compared to FY2025[31] - Cash dividends for FY2026 are forecasted to total 95.00 yen per share, with a year-end dividend of 50.00 yen[6] - Cash dividends per share for FY2026 are projected to be ¥45, with a payout ratio of 33.0%[62] Operating Expenses - Sales revenues from automotive operations rose by 5.7% to 34,173.2 billion yen, but operating income decreased by 21.3% to 2,420.4 billion yen[19] - Operating expenses for the first nine months were ¥34,890,883 million, up from ¥33,000,000 million in the previous year, indicating a rise in operational costs[52] - The total operating expenses for the Automotive segment rose from ¥29,267,359 million in 2024 to ¥31,752,847 million in 2025, an increase of approximately 8.5%[48][49] Future Outlook and Investments - The company plans to increase its investment in Toyota Industries Corporation from ¥706.0 billion to ¥800.0 billion due to a rise in the tender offer price[59] - The company plans to continue expanding its market presence in North America and Europe, with specific strategies to enhance product offerings[62] - The company has adjusted the timing for the tender offer for its own shares to around mid-February 2026, from the previously planned mid-January 2026[59] - R&D expenses for FY2026 are projected to reach 1,420.0 billion yen, with 372.9 billion yen expected in Q3[67] - Capital expenditures for FY2026 are forecasted at 2,300.0 billion yen, with Q3 expenditures estimated at 594.2 billion yen[67] Employee and Corporate Structure - The number of employees increased to 390,241, up from 384,338 in FY2025 Q3[62] - The number of consolidated subsidiaries stands at 585, with 165 associates and joint ventures accounted for using the equity method[67] - Hino Motors, Ltd. is expected to cease being a consolidated subsidiary of Toyota following the business integration scheduled for April 1, 2026[57]