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Toyota Q2 Earnings and Revenues Miss Estimates, Decline Y/Y

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Toyota (TM - Free Report) posted fiscal second-quarter 2025 earnings of $2.90 per share, which lagged the Zacks Consensus Estimate of $4.39 and declined from the year-ago earnings of $6.54 a share. Consolidated revenues came in at $76.9 billion, which missed the consensus mark of $79.7 billion and declined from $79.1 billion in the year-ago quarter.  

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Toyota had cash and cash equivalents of ¥7.63 trillion ($53.25 billion) as of Sept. 30, 2024. Long-term debt was ¥21.6 trillion ($150.8 billion), up from ¥21.15 trillion as of March 31, 2024.

TM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Toyota Motor Corporation Price, Consensus and EPS Surprise

Toyota Motor Corporation Price, Consensus and EPS Surprise

Toyota Motor Corporation price-consensus-eps-surprise-chart | Toyota Motor Corporation Quote

Segmental Results        

The Automotive segment’s net revenues for the fiscal second quarter decreased 1.6% year over year to ¥10.3 trillion ($69.4 billion), in line with our estimates. Operating profit came in at ¥949.8 billion ($6.37 billion), down 27% from the year-ago period but exceeding our estimate of ¥874 billion.

The Financial Services segment’s net revenues rose 22.5% from the prior-year quarter to ¥1 trillion ($6.96 billion). The metric outpaced our forecast of ¥863.9 billion. The segment registered an operating income of ¥172.7 billion ($1.16 billion), up from ¥97.6 billion in second-quarter fiscal 2024 and breezed past our estimate of ¥95.8 billion.

All Other businesses’ net revenues totaled ¥337.6 billion ($2.26 billion) in the reported quarter, rising from ¥319.2 billion in the comparable year-ago period and topping our projection of ¥332.5 billion. The unit generated an operating profit of ¥33.2 billion ($223 million), marking a contraction from ¥39.5 billion generated in the year-ago period and lagging our estimate of ¥39 billion.

FY25 Guidance

For fiscal 2025, Toyota projects total retail vehicle sales of 10.85 million units, indicating a decrease from 11.09 million units sold in fiscal 2024. Fiscal 2025 sales are expected to total ¥46 trillion, up from ¥45 trillion recorded in fiscal 2024. Operating income is projected to be ¥4.3 trillion, indicating a contraction of 18.8% year over year.

Pretax profit is estimated to be ¥4.98 trillion, implying a decline from ¥6.96 trillion generated in fiscal 2024. R&D expenses are envisioned to be ¥1.3 trillion, up from ¥1.2 trillion spent in fiscal 2024. Capex is forecast to be ¥2.15 trillion, signaling an uptick from ¥2.01 trillion spent in fiscal 2024.

Quarterly Releases of Other Legacy Automakers

Honda (HMC - Free Report) reported earnings of 43 cents per share for second-quarter fiscal 2025, missing the Zacks Consensus Estimate of 86 cents. The bottom line also declined from the year-ago profit of $1.07 per share. Quarterly revenues totaled $36.24 billion, surpassing the Zacks Consensus Estimate of $35.6 billion as well as the year-ago period figure of $34.5 billion. HMC’s consolidated cash and cash equivalents were ¥4.29 trillion ($29.97 billion) as of Sept. 30, 2024. Long-term debt was around ¥6.25 trillion ($43.67 billion) as of Sept. 30, 2024, up from ¥6.06 trillion as of March 31, 2024.

General Motors (GM - Free Report) reported third-quarter 2024 adjusted earnings of $2.96 per share, which surpassed the Zacks Consensus Estimate of $2.49. The bottom line also increased from the year-ago quarter’s level of $2.28. Revenues of $48.75 billion beat the Zacks Consensus Estimate of $44.29 billion and increased from $44.13 billion recorded in the year-ago period.General Motors had cash and cash equivalents of $23.7 billion as of Sept 30, 2024. The long-term automotive debt at the end of the quarter was $15.5 billion.

Ford (F - Free Report) reported third-quarter 2024 adjusted earnings of 49 cents per share, which came in line with the Zacks Consensus Estimate but increased from 39 cents recorded in the year-ago quarter. F’s total automotive revenues came in at around $43.07 billion, surpassing the Zacks Consensus Estimate of $41.2 billion and higher than $41.18 billion generated in the year-ago quarter.Ford had cash and cash equivalents of $23.4 billion as of Sept. 30, 2024. Long-term debt, excluding Ford Credit, totaled $19.07 billion at the end of the third quarter of 2024.

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