Third Quarter Financial Summary for Fiscal Year Ending March 2026 [IFRS (Consolidated)]

Performance Overview

For the cumulative consolidated third quarter period of the fiscal year ending March 2026 (April 1, 2025 to December 31, 2025), net sales were JPY 353,995 million (9.7% YoY increase), operating income was JPY 31,240 million (104.3% YoY increase), and net income attributable to owners of parent for the quarter was JPY 24,626 million (168.1% YoY increase). The main factors were steady sales of hydraulic equipment for construction machinery and automotive-related products, along with recognition of a negative goodwill gain from the full acquisition of Chita Steel Co., Ltd. By segment, net sales were JPY 252.6 billion for the AC business (12.0% YoY increase), JPY 91.8 billion for the HC business (6.7% YoY increase), and JPY 4.7 billion for the aircraft equipment business (108.4% YoY increase). On the other hand, sales in the special vehicle business declined due to withdrawal from the Indian market.

Future Outlook and Capital Policy

The consolidated full-year earnings forecast for the fiscal year ending March 2026 was revised to net sales of JPY 475,000 million (3.3% increase from previous forecast), operating income of JPY 36,000 million (16.1% increase), and net income attributable to owners of parent of JPY 27,500 million (10.0% increase). This assumes exchange rates of 143 JPY/USD and 165 JPY/EUR. Furthermore, at the board meeting held on February 12, 2026, a resolution was passed to conduct a share buyback via tender offer, responding to Toyota Motor Corporation's intention to sell shares, with plans to acquire up to 3,240,100 shares at a maximum total price of JPY 13,410,773,900. This strategy aims to improve capital efficiency and strengthen shareholder returns.