Toyota Motor June-quarter profit beats estimates — but drops 11% as U.S. tariffs bite

Toyota Motor on Thursday reported higher-than-expected operating profit for the June-quarter, even as the world’s largest auto company by sales volumes grapples with U.S. tariffs. 

Here are Toyota’s results compared with the mean estimates from LSEG:

• Revenue: 12.25 trillion yen vs. 12.19 trillion yen
• Operating profit: 1.17 trillion yen vs. 881.41 billion yen

Operating profit for the quarter, however, dropped 11% year on year, with the company attributing 450 billion yen in losses to U.S. tariffs. Net income attributable to the company fell 37% to 841.3 billion yen.

Toyota also revised its full-year operating income forecast down 600 billion yen to 3.2 trillion yen.

“Due to the impact of U.S. tariffs and other factors, actual results showed decreased operating income, and the forecast has been revised downward,” the company said.

While profit fell, Toyota has seen strong global demand and the automaker last week reported record worldwide sales in the first half of the year.

“Despite a challenging external environment, we have continued to make comprehensive investments and as well as improvements such as increased unit sales, cost reductions, and expanded value chain profits, thereby minimizing negative impacts,” the company said.

Japanese carmakers have been cutting prices in order to retain market share in the U.S. after President Donald Trump‘s 25% tariffs on imported vehicles came into effect in April. 

In June, the value of Japan car exports to the U.S. fell 25.3% year over year, even though car export volumes to the U.S. rose by 4.6% in the same period, according to data from Japan’s trade ministry.

Trump, however, announced a new trade deal with Tokyo last month with tariffs expected to fall to 15%, though the timeframe for the change remains unclear.

Auto exports to the U.S. are a cornerstone of Japan’s economy, making up about 24% of its global auto shipments in 2024, Japan’s customs data showed.