Toyoda Gosei (7282): FY2025 Results Summary — Record Profits, DOE Target Raised to 3.5%

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Toyoda Gosei announced its FY2025 results on April 28, 2026, covering the fiscal year that ended in March 2026. The company describes the year as “Achieving Record Profits by Offsetting Temporary Costs with Sales Growth and Cost Reduction.” Revenue rose 8.2% to ¥1,146.7 bn, operating profit rose 32.9% to ¥79.5 bn, and profit attributable to owners of parent rose 70.7% to ¥62 bn. Together with the results, the company raised the target level of DOE in its shareholder return policy from a 2.5% lower limit to around 3.5%, and announced a planned 5-for-1 stock split.

Consolidated Results (Full-Year Actual)

Figures are presented under IFRS in billions of yen (Unit: ¥ bn). The company states that revenue increased mainly due to increased customer production volumes, and that operating profit increased due to increased sales and cost improvements. Bracketed figures are the margin on revenue as shown in the materials, and the figure in parentheses in the Change column excludes the foreign exchange impact.

Item	FY2024 Actual results	FY2025 Actual results	Change (Excl. forex impact)	Increase/Decrease (%)
Revenue	1,059.7	1,146.7	+86.9 (+87.0)	+8.2%
Operating profit	59.8 [5.6%]	79.5 [6.9%]	+19.7 (+20.7)	+32.9%
Profit before tax	59.1 [5.6%]	90.2 [7.9%]	+31.0	+52.5%
Profit attributable to owners of parent	36.3 [3.4%]	62 [5.4%]	+25.6	+70.7%
ROE	6.8%	11.2%	–	–
TG-ROIC	13.7%	16.1%	–	–
Exchange rate (US$)	¥153	¥151	–	–

The company’s operating profit bridge runs from FY2024 operating profit of 59.8 to FY2025 operating profit of 79.5, with Sales +11.7, Price Revisions (9.2), Material Prices +0.0, Kaizen +18.2, Salary Increases (6.4), Fixed Costs (6.8), FX Impact (1.0) and Other +13.2. The Other bucket is broken down as FY2024 Reversal +10.8 (China impairment, etc.), Tariff Impact -2.4, China Impairment -5.2, and Acquisition of Ashimori Industries as a Subsidiary +5.9.

On the balance sheet, total assets increased by 79.9 billion yen to 992.9, which the company attributes mainly to a consolidated Ashimori impact of 64.1 billion yen. Shareholders’ equity was 568.5 at the end of FY2025 against 542.6 a year earlier. Operating cash flow was an increase of 131.6 billion yen, investment cash flow a decrease of 49.6 billion yen for free cash flow of 82.0, and financial cash flow a decrease of 70.8 billion yen; cash and cash equivalents ended the period at 131.8.

Results by Area

The company reports six regions. Japan and the Americas are the two largest by revenue, and Japan showed the largest profit improvement, with operating profit rising from 11.4 to 23.5 and the operating profit ratio from 2.6% to 4.8%. China remained in deficit but the deficit narrowed from (7.2) to (2.0), which the materials attribute mainly to decreased fixed costs. In the Americas, operating profit increased despite the impact of US tariffs, due to increased sales and cost improvement.

Area	Revenue FY2024	Revenue FY2025	Revenue FY2026 (Forecast)	Operating profit FY2024	Operating profit FY2025	Operating profit FY2026 (Forecast)
Japan	439.9	488.6	500.0	11.4	23.5	21.0
The Americas	403.9	428.3	450.0	34.1	34.9	38.0
Europe & Africa	32.7	34.6	33.0	2.6	2.6	2.5
China	94.9	90.8	76.0	(7.2)	(2.0)	(0.5)
Asia	138.5	153.9	155.0	14.1	14.9	13.0
India	42.3	51.8	60.0	4.3	5.7	6.0

By product area, Safety Systems revenue was 457.6 in FY2025 against 414.6 in FY2024, Interior and Exteriors 369.1 against 348.8, Functional Components 188.9 against 179.1, Weatherstrips 121.2 against 117.0, and Other 9.7. The materials note that following Ashimori Industry Co., Ltd. becoming a subsidiary, from the third quarter Ashimori’s “Automotive Safety Components Business” is included under “Safety Systems” and its “Functional Products Business” under “Others.” In the automobile business, revenue by customer totalled 1,118.4 against 1,046.9 a year earlier, up 6.8%, of which the Toyota Group accounted for 761.9 (68.1%) and other Japanese/foreign automakers 356.5 (31.9%).

FY2026 Forecast

For FY2026 the company guides to further record profits, stating that “While price revisions and wage increases will have an impact, cost improvements will drive increased profits.” Revenue is forecast at 1,200.0 and operating profit at 80.0, while profit before tax and profit attributable to owners of parent are forecast to decline. The assumed full-year US dollar rate moves from ¥151 to ¥155.

Item	FY2025 Actual results	FY2026 Forecast	Change
Revenue	1,146.7	1,200.0	+53.3
Operating profit	79.5 [6.9%]	80.0 [6.7%]	+0.5
Profit before tax	90.2 [7.9%]	84.0 [7.0%]	(6.2)
Profit attributable to owners of parent	62.0 [5.4%]	57.0 [4.8%]	(5.0)
ROE	11.2%	9.7%	–
TG-ROIC	16.1%	15.6%	–
Exchange rate (US$)	Full year: ¥151	Full year: ¥155	–
Capital Expenditure	58.5	72.0	+13.5
Depreciation & Amortization	51.0	57.0	+6.0
R&D Expenses	44.6	47.0	+2.4

The forecast operating profit bridge runs from FY2025 results of 79.5 to the FY2026 forecast of 80.0, with Sales +3.8, Price Revisions (10.7), Material Prices (3.1), Kaizen +20.3, Salary Increases (9.4), Fixed Costs (5.7), FX Impact +0.6 and Other +4.7. Assumed exchange rates for FY2026 are USD 155 (+4), Euro 180 (+5), Chinese yuan 22 (+0.8), Thai baht 4.9 (+0.2) and Indian rupee 1.7 (+0.0), and the company gives an exchange rate sensitivity against the US dollar of ¥0.4 bn.

Shareholder Returns

The target level of DOE in the shareholder return policy was raised from the previous 2.5% lower limit to around 3.5%. The company states: FY 2025 dividend of ¥138 based on DOE 3.0%, up ¥28 from the previous forecast; and FY 2026 dividend of ¥175 based on DOE 3.5%, up ¥37 from FY 2025. Figures in parentheses in the table below are the previous forecast.

Item	FY2025 Interim	FY2025 Year-end	FY2025 Total	FY2026 Interim (Forecast)	FY2026 Year-end (Forecast)	FY2026 Total (Forecast)
Dividend	¥50	¥88 (¥60)	¥138 (¥110)	¥85	¥90	¥175
Total dividends	¥6.4bn	¥10.3bn (¥7.6bn)	¥16.7bn (¥14bn)	¥10bn	¥10.6bn	¥20.5bn
DOE	–	–	3.0% (2.5%)	–	–	3.5%

On policy, the company says that in order to achieve the “stable and continuous increase in dividends” set forth in the 2030 Financial Policy, it aims to achieve a DOE of around 3.5% (DOE: Dividend on Equity = Dividends/Shareholders’ Equity; previously 2.5% was the lower limit). In addition, in order to build an appropriate capital structure, it will flexibly repurchase treasury stock. Through these initiatives the company says it is more conscious of improving capital efficiency than ever before, and will achieve and improve long-term stable TSR that exceeds the cost of equity.

Capital Policy and Topics

Alongside the dividend increase, the company announced a 5-for-1 stock split (planned) with a record date of September 30, 2026, with the objectives of expanding the investor base and enhancing stock liquidity. Its capital policy chart shows the shift from a payout ratio of 30% to a DOE indicator of 2.5%, then 3.0% and 3.5%, together with treasury stock acquisitions of ¥8.2bn and ¥45.3bn and a secondary offering of shares by major shareholders.

On a full-year trend basis, revenue moved 951.8 (FY22), 1,071.1 (FY23), 1,059.7 (FY24), 1,146.7 (FY25) and 1,200.0 (FY26 forecast), with operating profit of 35.0, 67.7, 59.8, 79.5 and 80.0 and operating profit ratios of 3.7%, 6.3%, 5.6%, 6.9% and 6.7%. ROE moved 3.6%, 10.6%, 6.8%, 11.2% and 9.7%, and TG-ROIC 8.1%, 15.5%, 13.7%, 16.1% and 15.6%. Toyoda Gosei notes that it adopted the International Financial Reporting Standards (IFRS) from the first quarter of FY2018.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.