Toyoda Gosei earnings rise on stronger automotive demand

Kiyosu, Japan – Toyoda Gosei has reported higher first-quarter earnings for fiscal year 2026, driven by increased vehicle production, higher sales volumes and lower manufacturing costs.

For the three months ended 30 June, revenue increased 16.7% year-on-year to Yen303.8 billion (€1.7 billion), supported mainly by higher customer production volumes in Japan and favourable foreign exchange rates.

Operating profit rose to Yen23.2 billion, up Yen4.8 billion, or 26.1%, from Yen18.4 billion a year earlier, TG reported 31 July.

Despite the impact of Iran war in the Middle East, the supplier said earnings benefited from "higher sales volume and the effects of new products" as well as ongoing cost improvements.

By region, Japan posted a revenue of Yen127.6 billion, up 19.1% year-on-year, while operating profit more than doubled, increasing 143.1% to Yen6.2 billion on higher production volumes and lower unit costs.

Revenue in the Americas increased 17.5% to Yen122.1 billion, although operating profit declined 2.9% to Yen10.4 billion due to “deterioration in raw material market conditions.”

Europe and Africa recorded a 9.7% year-on-year increase in revenue to Yen8.4 billion, helped mainly by exchange rates.

Operating profit in the region fell 19.2% to Yen400 million due mainly to lower volumes.

In China, revenue decreased 9.3% to Yen18.8 billion following lower customer production volumes.

Operating profit, however, more than doubled, rising 135.0% to Yen1.5 billion due to lower unit costs and reduced fixed costs.

Revenue in Asia climbed 31.6% to Yen42.7 billion on higher automotive production, with operating profit increasing 37.5% to Yen3.7 billion on higher sales and lower unit costs.

India reported a revenue of Yen13.5 billion, up 24.5% compared to the year before, as customers increased production.

The region’s operating profit increased 4.3% to Yen900 million, reflecting higher sales despite the impact of salary increases.

Toyoda Gosei said customer production "remained solid" during the quarter but cautioned that it would continue to monitor risks arising from the Middle East situation and raw material markets.

The supplier left its fiscal year 2026 forecast unchanged, citing the need to "closely monitor market impacts."

The company continues to expect revenue of Yen1,200 billion, up 4.7% from the year before. Operating profit estimate also remained unchanged at Yen80.0 billion, up 0.6% from the previous fiscal year.