Toyota Motor revised its net profit forecast for the fiscal year ending March 2027 upward to 3.25 trillion yen ($20.6 billion), boosted by the depreciation of the yen. The automaker also increased its operating profit projection by 480 billion yen, aided by the weaker currency, though tensions in the Middle East negatively affected results. Toyota raised its annual revenue forecast from 51 trillion yen to 54 trillion yen, a 6.5% increase from the prior year [1, 2, 3].
In its first quarter, Toyota posted a net profit of 1.477 trillion yen, up 75.6% from the same period a year earlier, marking its first quarterly profit increase in two years. Despite this, global vehicle sales fell 4.1% to 2.714 million units, weighed down by softer demand in the Middle East [1, 3].
Honda Motor also upgraded its full-year net profit forecast to about 400 billion yen ($2.5 billion), rebounding from a 423.9 billion yen loss last year. The company raised its operating profit forecast to 650 billion yen ($4.1 billion), up from a previous forecast of 500 billion yen, citing a strong motorcycle business, rising US hybrid demand, and currency tailwinds as key drivers [4, 5, 6].
Honda’s first quarter operating profit reached 531 billion yen, with 234 billion yen contributed by motorcycle sales. While the automotive segment posted steady sales in North America, it faced weakness in China. Honda’s gains were supported by growth in markets such as India and Brazil, along with improvements in its cost structure. However, it faced challenges in electric vehicle segments and parts shortages [5].
Honda CFO Masao Kawaguchi noted the risks from the ongoing Middle East situation, saying, "Uncertainty surrounding the situation in the Middle East makes it necessary to carefully assess risks related to sales volume, material costs and other factors" [5]. Senior auto analyst Tatsuo Yoshida said, "The underlying improvement became much clearer in the first quarter" [5].
Looking ahead, Honda plans to introduce 15 new hybrid models by March 2030, focusing on North American markets to support its business turnaround [5].
Toyota’s and Honda’s next quarterly results are expected to provide further clarity on how geopolitical risks and supply issues will affect their performance through fiscal 2027.
