Core Insights - Toyota Motor Corporation reported revenue of $84.82 billion for the quarter ended June 2025, marking an 11.7% year-over-year increase [1] - The earnings per share (EPS) for the same period was $4.47, down from $6.35 a year ago, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $82.62 billion by 2.67%, while the EPS fell short of the consensus estimate of $4.67 by 4.28% [1] Financial Performance Metrics - Total retail unit sales reached 2.83 billion, surpassing the average estimate of 2.36 billion from two analysts [4] - Vehicle production in Africa was 30 thousand, exceeding the estimated 24.94 thousand [4] - Vehicle production in Japan, including Daihatsu & Hino, was 994 thousand, compared to the average estimate of 940.04 thousand [4] - Vehicle sales in Japan, including Daihatsu & Hino, totaled 481 thousand, above the estimated 440.3 thousand [4] - Total overseas vehicle sales, including Daihatsu & Hino, were 1.93 million, slightly above the estimated 1.92 million [4] - North America vehicle sales reached 794 thousand, exceeding the average estimate of 772.57 thousand [4] - Vehicle sales in Europe were 298 thousand, slightly below the estimated 301.6 thousand [4] - Vehicle sales in Asia totaled 421 thousand, below the average estimate of 433.6 thousand [4] - Central and South America vehicle sales were 129 thousand, above the estimated 123.77 thousand [4] - Oceania vehicle sales were 78 thousand, closely matching the average estimate of 78.32 thousand [4] - Africa vehicle sales reached 60 thousand, exceeding the estimated 54.43 thousand [4] - Middle East vehicle sales were 147 thousand, below the average estimate of 151.99 thousand [4] Stock Performance - Shares of Toyota Motor have returned +6.5% over the past month, outperforming the Zacks S&P 500 composite's +1.9% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **US Inflation Monitor** and the **Consumer Price Index (CPI)** trends in North America, particularly regarding the impact of tariffs on inflation rates [1][6][24]. Core Insights and Arguments 1. **Core CPI Trends**: - Core CPI is expected to rise by **0.32% month-over-month (m/m)** and **3.04% year-over-year (y/y)** in July, up from **0.23% in June**. This increase is primarily driven by core goods inflation, particularly in categories exposed to tariffs [1][6][19]. 2. **Core Goods Inflation**: - There is an anticipated acceleration in core goods inflation, with categories such as apparel, appliances, furniture, and select electronics expected to continue rising. New car prices are also projected to see a modest increase [7][14][32]. 3. **Housing Market Dynamics**: - Housing inflation is expected to remain stable, with a slight decline in Owners' Equivalent Rent (OER) offset by rising rents for primary residences. The overall rents inflation trend is estimated at **0.29% m/m**, with a gradual deceleration expected through 2025 [8][16]. 4. **Core Services Performance**: - Core services, excluding housing, are projected to remain flat, with mixed signals across components. Medical services are expected to decline, while airfares, hotel rates, and car insurance are likely to show stronger inflation prints [9][19]. 5. **Energy Inflation**: - Energy inflation is expected to revert to negative territory, which will bring the headline CPI below the core CPI. The timing of tariff pass-through remains a critical question, complicating the prediction of inflation data [10][19]. 6. **Airfares and Hotel Rates**: - Airfares are likely to see a modest increase, supported by rising oil prices, while hotel inflation is expected to rebound from a weak June print. However, average daily rates suggest hotel inflation may remain negative [17][41]. 7. **Tariff Impact**: - There are clearer signs of tariff-related price pressures, particularly in goods categories heavily exposed to tariffs. This trend is expected to continue, with leading indicators suggesting ongoing inflation in goods without sharp acceleration [24][25]. 8. **New Car Prices**: - Data from JD Power indicates a mild acceleration in new car prices, with average transaction prices increasing from **1.4% y/y to 3.1% y/y**. This aligns with recent price increase announcements from major manufacturers [32][33]. Additional Important Insights - **Economic Models and Predictions**: - Economic models typically estimate the magnitude of price shifts due to tariffs but struggle with timing and pace, making it challenging to pinpoint when these effects will manifest in inflation data [10][12]. - **Potential Risks**: - There are upside risks to the July core CPI print, with a reading rounding to **0.4%** being more likely than one rounding to **0.2%**. This reflects the potential for sudden tariff-related price increases during the summer months [12][19]. - **CPI Forecasts**: - The forecast for headline CPI is **0.25% m/m**, with softer energy inflation contributing to this figure. The CPI NSA Index is projected at **323.218** for July [19][20]. This summary encapsulates the key points discussed in the conference call, highlighting the trends and expectations surrounding inflation in the US economy, particularly in relation to tariffs and various market sectors.

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Global Energy Storage and Electric Vehicle (EV) Battery Market Key Company Developments - **SK On and SK Enmove Merger**: SK Innovation confirmed the merger to enhance competitiveness in the global electrification market, effective November 1, 2025. The merger aims to unlock synergies in EV battery and energy storage systems, supported by a capital expansion of KRW 8 trillion (approximately €5 billion) [1][1][1] - **CATL Short Selling**: CATL's shares in Hong Kong have become a target for short sellers, with bearish bets doubling to 42% of free float since June. Despite a 50% surge in share price over two months, borrowing costs for shorts have increased significantly [1][1][1] - **Sodium Ion Battery Production**: The sodium ion battery pipeline is dominated by Tier 3 producers, with only 10% of capacity from Tier 1 producers. BYD and CATL are the only Tier 1 producers with sodium ion facilities, with BYD's gigafactory in Qinghai starting production [1][1][1] - **Middle East BESS Growth**: The BESS industry in the MENA region is expanding, particularly in Saudi Arabia and the UAE, with over 25 GWh of planned projects by 2027. Saudi Arabia currently has 11.7 GWh of operational grid BESS [1][1][1] - **CATL's Electric Vessel**: CATL has powered China's first fully electric passenger vessel, the Yujian 77, which has a range of 100 kilometers and a battery capacity of 3,918 kWh [2][2][2] Industry Challenges - **Lithium Miners' Struggles**: Lithium producers are facing financial pressures, with companies like IGO Ltd. and Mineral Resources Ltd. reporting potential impairments and cost-cutting measures due to challenges in the EV transition [2][2][2] Market Trends - **Tesla's Battery Supply Agreement**: Tesla signed a $4.3 billion agreement with LG Energy for US-built batteries, aimed at boosting its energy storage business, which has seen a decline in revenue [5][5][5] - **Panasonic's Capacity Plans**: Panasonic has delayed its EV battery expansion plans at its Kansas factory, now targeting 32 GWh capacity without a specific timeline [5][5][5] - **Asahi Kasei's Supply to Toyota**: Asahi Kasei will supply battery separators to a Toyota subsidiary, indicating ongoing collaboration in the EV supply chain [5][5][5] - **Italy's EV Incentives**: Italy plans to allocate €600 million for EV purchase incentives, aiming to promote the purchase of at least 39,000 electric vehicles by mid-2026 [5][5][5] - **Toyota's European EV Production**: Toyota plans to manufacture 100,000 EVs annually in Europe starting in 2028, aligning with EU climate policies [5][5][5] Additional Insights - **Norway's EV Market**: In July 2025, electric vehicles accounted for 97.2% of new car registrations in Norway, highlighting the country's strong EV adoption [8][8][8] - **Germany's Renewable Energy Challenges**: Germany faced record curtailment of solar and wind energy in the first half of the year due to grid constraints and insufficient battery storage [8][8][8] - **Commodity Price Performance**: Lithium carbonate (LiCO) spot prices are at $9,732 per tonne, with a 12% decline over the past year, indicating market volatility [7][7][7] This summary encapsulates the critical developments and trends in the global energy storage and EV battery market, highlighting both opportunities and challenges faced by key players in the industry.

Wait for this opening trade today. Firefly Aerospace pricing shares in its IPO at $45 a share. That was above the range uh that the company had already uh lifted this week.The stock set to begin trading at a valuation of about $6.3% billion. The company that is Firefly creates lunar landers, rockets, and space technology. It won a 177 million contract with NASA last month, and the company CEO is going to join us in the next uh hour first uh on CNBC.President Trump plans to sign an order today that aims to a ...

Table of Contents FINANCIAL SUMMARY (All financial information has been prepared in accordance with IFRS Accounting Standards) FY2026 First Quarter (April 1, 2025 through June 30, 2025) English translation from the original Japanese-language document TOYOTA MOTOR CORPORATION Table of Contents FY2026 First Quarter Consolidated Financial Results (All financial information has been prepared in accordance with IFRS Accounting Standards) English translation from the original Japanese-language document August 7, ...

Core Insights - President Trump's tariff policy is significantly impacting Japan's auto industry, with Toyota expecting a reduction in operating income for the 2026 fiscal year by 1.4 trillion Japanese yen ($9.5 billion), which is 1.2 trillion yen higher than its initial forecast [1] - Honda reported a 50% year-over-year decline in operating profits, attributing a loss of approximately 122 billion Japanese yen to tariffs, with a potential total impact of 450 billion yen for the year [3] - A recent trade deal between the US and Japan has lowered tariffs on Japanese auto imports from 25% to 15%, providing Japanese automakers a competitive edge over American rivals like Ford and GM, who still face a 25% tariff [4] Company-Specific Insights - Toyota's operating income in North America has declined due to tariffs, with the company citing "exchange rate fluctuations and increased expenses" as contributing factors [2] - Honda has adjusted its full-year operating profit forecast upward by 40%, indicating that the impact of tariffs may be less severe than initially expected [3] - Ford's CEO expressed concerns that the trade deal gives Japanese automakers a "meaningful advantage," potentially allowing them to undercut Ford models by up to $10,000 [5]

FY2026 Forecast Revision - Toyota revised its FY2026 operating income forecast downward by 06 trillion yen, from 38 trillion yen to 32 trillion yen [5] - The impact of US tariffs is estimated to be 14 trillion yen, a downward revision from the previous forecast of 12 trillion yen [5] - Consolidated vehicle sales forecasts remain unchanged at 98 million units [35] FY2026 First Quarter Performance - Operating income for the first quarter of FY2026 was 11661 billion yen, a decrease of 1423 billion yen year-on-year [15] - Net income attributable to Toyota Motor Corporation decreased by 4920 billion yen to 8413 billion yen [15] - Total retail vehicle sales increased by 73% year-on-year, reaching 2829 thousand units [11] Sales Performance - Toyota and Lexus vehicle sales increased by 61% year-on-year, reaching 2643 thousand units [11] - Electrified vehicle sales increased by 171% year-on-year, reaching 1259 thousand units, representing 476% of total retail vehicle sales [11] - Consolidated vehicle sales increased by 71% year-on-year to 2411 thousand units [13] Financial Analysis - Sales revenues increased by 4154 billion yen to 122533 billion yen [15] - The operating income margin decreased from 111% to 95% [15] - The analysis of consolidated operating income indicates a negative impact of 4500 billion yen due to tariffs [19] Regional Performance - In North America, vehicle sales increased by 142% [22] - In Asia, vehicle sales increased by 127% [22] - China Business operating income of consolidated subsidiaries increased by 104 billion yen [27] Financial Forecasts - Sales Revenues are forecasted to be 485 trillion yen [38] - Net Income Attributable to Toyota Motor Corporation is forecasted to be 266 trillion yen [38]

Core Insights - Toyota Motor reported higher-than-expected operating profit for the June quarter despite facing challenges from U.S. tariffs [1] - The company's operating profit dropped 11% year-on-year, marking the third consecutive quarterly decline [1] - Net income attributable to Toyota fell 37% to 841.3 billion yen [2] Financial Performance - Revenue for the quarter was 12.25 trillion yen, slightly above the estimate of 12.19 trillion yen [4] - Operating profit was reported at 1.17 trillion yen, significantly higher than the expected 881.41 billion yen [4] Market Dynamics - Strong global demand was noted, with record worldwide sales reported in the first half of the year [2] - Japanese carmakers, including Toyota, have been reducing prices to maintain market share in the U.S. following the implementation of a 25% tariff on imported vehicles [2] - In June, the value of Japan's car exports to the U.S. fell by 25.3% year-on-year, although export volumes increased by 4.6% [3] Trade Relations - A new trade deal announced by President Trump is expected to reduce tariffs on Japanese vehicles to 15%, although the timeline for this change is unclear [3] - Auto exports to the U.S. are crucial for Japan's economy, accounting for approximately 24% of its global auto shipments in 2024 [3]

Financial Data and Key Metrics Changes - The company reported a Q2 net loss of $325 million, which includes a $168 million operating loss and a $157 million non-operating loss, both impacted by non-cash items [30] - Total operating expenses for the quarter were $168 million, up about $5 million from the prior quarter, driven by higher staffing and program spending [31] - Adjusted EBITDA was a loss of $132 million in Q2, about $4 million higher than the prior quarter, reflecting increased spending [32] Business Line Data and Key Metrics Changes - The company is 70% complete on the Joby side for stage four of certification, with a 10-point increase from the previous quarter [7] - The first of five aircraft for TIA flight testing is headed to final assembly, with plans to start flying TIA aircraft with Joby pilots this year [7][12] - The acquisition of Blade's passenger business is expected to accelerate readiness for commercial eVTOL operations globally [14][15] Market Data and Key Metrics Changes - The company completed 76 separate flights in July alone, with significant flight testing in Dubai, including operations in challenging conditions [6][12] - The company is exploring the sale of up to 200 aircraft in Saudi Arabia, valued at approximately $1 billion [18] Company Strategy and Development Direction - The company aims to leverage the acquisition of Blade to enhance its operational capabilities and customer experience, particularly in New York [16][46] - The company is pursuing three paths to commercialization: owned and operated service, direct sales, and regional partnerships [17][35] - The company is also developing hybrid aircraft for U.S. defense applications, indicating a dual-use strategy [19][22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the global regulatory momentum for eVTOL, with significant collaboration among countries to streamline certification processes [10][11] - The company is focused on scaling production capacity to meet demand, with plans to double production capacity at its Marina facility [23][24] - Management expressed confidence in the company's ability to execute on its plans despite the challenges ahead [34] Other Important Information - The company ended Q2 with cash and short-term investments totaling $991 million [29] - The company remains on track with its full-year 2025 guidance of $500 million to $540 million in cash use [30] Q&A Session Summary Question: Plans for providing eVTOLs to local charter operators - The company prefers retaining long-term cash flow from passenger service but sees value in Blade's asset-light model for flexibility [38][39] Question: Specifications of TIA aircraft - The TIA aircraft is nearly identical to previous models, with FAA inspections ongoing during the build process [41][42] Question: Initial commercial service in the U.S. post-Blade acquisition - The acquisition enhances operations in New York, allowing for faster ramp-up due to existing infrastructure and customer base [46] Question: Certification timeline and remaining tasks - The company is on schedule to begin TIA flights with Joby pilots by late this year and with FAA pilots early next year [84][85] Question: Contribution from Blade operations in financials - The Blade acquisition is in the process of closing, with contributions expected in future quarters [86]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Autos - **Key Focus**: The impact of the Chinese government's "anti-involution" initiatives aimed at curbing irrational competition and addressing overcapacity in the automotive sector, particularly in New Energy Vehicles (NEVs) [2][8][12] Core Insights - **Challenging Pricing Environment**: - The average industry capacity utilization rate was around 70% in 2024, with significant variance among OEMs [6][15] - The top 10 brands accounted for only 55% of the market share in 1H25, indicating a lack of market concentration [6][18] - The pricing environment worsened in 2Q25 due to price cuts initiated by key OEMs like BYD and Nissan [14] - **Government Initiatives**: - The government is implementing measures to stabilize pricing and improve margins by phasing out outdated capacity [12][14] - Initial signs of a stabilizing pricing environment are emerging, supported by government actions and company-level restructuring [6][12][37] - **Consolidation Trends**: - A two-phase consolidation is expected, with the first phase involving the exit of smaller OEMs and the second phase seeing Chinese brands gaining market share from foreign brands [6][23][32] Company-Specific Insights - **Guangzhou Auto (GAC)**: - Upgraded from Underweight (UW) to Overweight (OW) with a price target of Rmb11.00, implying a potential upside of 42% [40][58] - GAC is undergoing a comprehensive restructuring aimed at improving profitability, with expected benefits starting in 2026 [41][61] - The company plans to launch new NEV models and enhance its product offerings, focusing on technology and connectivity [44][46] - **Zhongsheng Auto**: - Upgraded to Overweight (OW) due to expected benefits from Mercedes-Benz's restructuring and a strong model cycle [2][40] Financial Projections - **Guangzhou Auto Financials**: - Revenue is projected to grow from Rmb107.78 billion in FY24 to Rmb139.34 billion in FY27 [57] - Adjusted net income is expected to improve significantly, with a forecast of Rmb1.33 billion in FY26 [57] - The company is currently trading at a low price-to-book (P/B) ratio of 0.2x for FY25E and FY26E, indicating favorable risk-reward dynamics [40][41] Risks and Considerations - **Downside Risks**: - Potential risks include worse-than-expected sales volume and profitability at major joint ventures, as well as slower-than-anticipated growth for GAC's own-brand operations [63] Conclusion - The Chinese automotive sector is poised for a turnaround driven by government initiatives and company-level restructuring, with specific companies like Guangzhou Auto and Zhongsheng Auto positioned to benefit significantly from these changes [2][8][40][58]