Group 1 - President Trump announced that Toyota is set to invest $10 billion in auto plants in the U.S. [1]

Core Insights - Toyota Motor Corp reported a growth in production for the fourth consecutive month in September, driven by strong demand in the U.S. market [1] Production and Sales Data - Toyota produced 918,146 vehicles globally in September, marking an 11.1% increase [2] - U.S. production surged by 28.5%, attributed to high demand for hybrid vehicles [2] - Sales of electrified vehicles reached 99,619 units in September, reflecting a 5.8% increase [2] - Production in China rose by 16%, while global sales increased by 3%, with U.S. sales up 14.2% at 185,748 units sold [3] - Year-to-date sales exceeded 7.8 million vehicles, representing a 5% year-over-year increase [3] Recent Developments - Toyota has experienced eight consecutive months of growth, with U.S. sales increasing by 13.6% due to strong demand for hybrid models [4] - The company announced a partnership with Sumitomo Metal Mining Co. Ltd. to develop cathode materials for solid-state batteries, intended for use in Battery Electric Vehicles (BEVs) [5] - Currently, Toyota sells one BEV in the U.S., the bZ, which has a retail price of $34,990 and features a 74.7 kWh battery with a range of 314 miles [5] Market Outlook - Former Ford CEO Mark Fields indicated that the adoption of electric vehicles (EVs) in the U.S. will be gradual, as consumers transition away from fossil fuels [6] - Fields noted that automakers had initially expected a faster growth rate for the EV market, with General Motors announcing a $1.6 billion investment in EV charging infrastructure [6] Performance Metrics - Toyota demonstrates satisfactory momentum and performs well on value, growth, and quality metrics, with a favorable price trend across short, medium, and long-term horizons [7]

Core Insights - Porsche is experiencing significant challenges in its electric vehicle (EV) strategy, leading to a strategic pullback in its electrification plans [2][3][4] Financial Performance - Group operating profit for the first nine months of 2025 plummeted 99% to €40 million from €4 billion a year earlier, resulting in an operating margin decrease to 0.2% from 14% [5] - Group revenue decreased by 6% to €26.86 billion, impacted by weaker demand in China and 15% U.S. import tariffs [5] - Extraordinary expenses related to the EV slowdown and restructuring are projected to reach approximately €3.1 billion this year, including €1.8 billion in depreciation and provisions [5] Strategic Adjustments - Porsche has postponed its next electric platform and delayed several all-electric models, opting instead to launch a new SUV with combustion and plug-in hybrid engines [4] - The Panamera and Cayenne models will continue production with combustion and hybrid options into the 2030s [4] - Other automakers, including Ford, General Motors, and Tesla, are facing similar pressures, leading to delayed model launches and reduced production targets [6] Cash Flow and Liquidity - Despite the significant losses, Porsche's automotive net cash flow increased to €1.34 billion from €1.24 billion a year earlier, with a margin of 5.6% [7] - The CFO indicated that this performance demonstrates Porsche's ability to maintain liquidity even amid declining earnings [7]

Group 1: Safran - JP Morgan maintained its "Buy" rating for Safran (SAF.PA), setting a price target of €320 as of October 24, 2025, following a previous adjustment from €270 [2] - Jefferies raised its price target for Safran to €360 from €350, citing a stronger-than-expected EBIT upgrade [2][7] Group 2: Philippine Stock Exchange Index - The Philippine Stock Exchange Index (PSEi) closed at 5,897.74 on October 27, 2025, representing a 1.5% decline, marking its lowest point since April 8, 2025 [3][7] - Earlier in October, the PSEi had dipped to 5,988.02, down 1.09%, influenced by a weaker peso and concerns over the country's fiscal health [3] Group 3: Toyota Motor Corporation - Toyota Motor Corporation (TM) sold 879,314 vehicles globally in September 2025, a 3.1% increase from the previous year [4][7] - Global vehicle output for September 2025 rose by 11.1% year-over-year, reaching 918,146 units, supported by an 8.5% increase in Japan and a 12.4% surge in overseas production [4]

Core Viewpoint - Toyota Motor reported a significant increase in worldwide production, exceeding 10% in September, marking the fourth consecutive month of growth, driven by rising sales and output in the U.S. [1] Group 1: Production and Sales Performance - Worldwide production increased by more than 10% in September [1] - This growth represents the fourth straight month of production increase [1] - Both sales and output have risen in the U.S. market [1]

Core Points - US President Donald Trump's Asia trip is focused on enhancing investments and defense cooperation with Japan [1] - The trip is generating significant media attention and impacting Asian markets positively [1] Investment and Defense Cooperation - Trump is expected to advocate for increased investments from Japan into the US [1] - The emphasis on defense cooperation suggests potential growth in defense-related industries and partnerships [1] Market Reactions - Asian markets are showing signs of recovery and optimism in response to Trump's visit [1]

Core Insights - Toyota Motor is expected to announce plans to import vehicles manufactured in the United States to Japan during U.S. President Trump's visit to Japan [1] Group 1 - The announcement is anticipated to occur next week, coinciding with a three-day visit by President Trump [1]

User Engagement & Rewards - Brave browser users can earn $BAT (Basic Attention Token) by viewing campaigns [1] - Toyota is running campaigns on Brave browser [1] Privacy & Technology - Brave browser offers private browsing while allowing users to earn rewards [1]

Core Viewpoint - Wall Street analysts' recommendations significantly influence investor decisions regarding Toyota Motor Corporation, but the reliability of these recommendations is questionable [1][5][10]. Brokerage Recommendations - Toyota Motor has an average brokerage recommendation (ABR) of 1.64, indicating a consensus between Strong Buy and Buy, with 72.7% of recommendations being Strong Buy and 9.1% being Buy [2][5]. - The ABR is based on recommendations from 11 brokerage firms, with eight firms rating it as Strong Buy and one as Buy [2]. Limitations of Brokerage Recommendations - Brokerage recommendations often exhibit a strong positive bias due to the vested interests of the firms, leading to a higher number of favorable ratings compared to negative ones [6][10]. - Studies suggest that these recommendations have limited success in guiding investors toward stocks with significant price appreciation potential [5][10]. Zacks Rank Comparison - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, making it a more reliable indicator of near-term stock performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects timely changes in earnings estimates, unlike the potentially outdated ABR [12]. Current Earnings Estimates for Toyota Motor - The Zacks Consensus Estimate for Toyota Motor's current year earnings remains unchanged at $18.15, indicating stable analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Toyota Motor holds a Zacks Rank of 3 (Hold), suggesting caution despite the favorable ABR [14].

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $917 million, a 6% decline from the prior year, primarily due to an unplanned production shutdown at JLR [4][25][26] - Adjusted EBITDA was $119 million, with a margin of 13%, reflecting strong operational execution and cost control [6][26] - Adjusted free cash flow for the quarter was $110 million, driven by robust EBITDA performance [6][26] Business Line Data and Key Metrics Changes - Cockpit electronics business showed strong growth in Europe and The Americas, offset by lower sales in China and for Battery Management Systems (BMS) in the U.S. [5][8] - BMS sales were down significantly year over year, reflecting a challenging environment for EVs in 2025 compared to 2024 [8][25] - The company launched 28 new products across 10 different OEMs in Q3, indicating strong program execution capabilities [12][15] Market Data and Key Metrics Changes - Sales in North America for cockpit electronics exceeded expectations, while BMS sales were down significantly due to changes in the EV market [8][25] - In Europe, sales were flat year over year, with gains in cockpit electronics and ICE vehicles [9][11] - Sales in China declined year over year, primarily due to a negative vehicle mix and market share loss of global OEMs [11][12] Company Strategy and Development Direction - The company is focusing on expanding its product portfolio and securing new business wins, with expectations to exceed $7 billion in new business awards for the year [15][16] - Strategic initiatives include targeting underrepresented car OEMs in Asia and expanding into adjacent markets such as two-wheelers and commercial vehicles [23][24] - The introduction of AI-enabled cockpit systems is a key focus, with the company positioned well in this emerging technology trend [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from the macro environment, particularly in China and for electric vehicles in the U.S., but maintained a positive outlook for adjusted EBITDA and free cash flow [6][39] - The company expects to return to growth in China, driven by new model launches and high-performance compute programs [48][61] - Concerns were raised regarding potential risks from recent trade restrictions imposed by the Chinese government on semiconductor suppliers, which could impact production [41][42] Other Important Information - The company resumed capital returns to shareholders with the initiation of a quarterly dividend and plans for additional capital returns in Q4 [7][35] - The company ended the quarter with $459 million in net cash, providing flexibility for investments and shareholder returns [27][35] Q&A Session Summary Question: Expectations for growth in China into 2026 - Management expects to return to growth in China, with about 20 new model launches planned for next year, predominantly in the back half of 2026 [46][48] Question: Impact of Nexperia trade restrictions - Management discussed the potential direct and indirect impacts of Nexperia's trade restrictions, noting that Visteon has a higher level of semiconductor inventory compared to peers, providing some cushion [49][54] Question: Direction of BMS sales into 2026 - Management anticipates BMS revenue to continue declining in 2026 due to headwinds in the EV market, with expectations for stabilization thereafter [62] Question: Sustainability of new business booking momentum - Management believes the current momentum in new business bookings is sustainable, driven by strong demand for displays and ongoing investments in product development [65][66] Question: Margin implications and recoveries from OEMs - Management indicated that margins have remained strong, with expectations for continued recoveries from OEMs related to volume adjustments [72][76]