Demand for Toyota's hybrids expected to boost its earnings

Robust demand for hybrids is expected to underpin steady profits at Toyota when the world's top automaker reports annual earnings today, although investors will be on high alert for any sign of a looming impact from US tariffs.

- DANIEL LEUSSINK

Investors will be paying close attention to how Toyota will factor in the hit from US President Donald Trump's tariffs on its future profits, as the levies are expected to deal a heavy blow to car makers doing business in the US.

Another attention point will be what Toyota will say about Toyota Industries after the automaker confirmed last month that it was considering investing in a potential buyout of the key parts supplier.

"The focus is on the guidance for the fiscal year ending March 2026," said Seiji Sugiura, a senior analyst at Tokai Tokyo Intelligence Laboratory. "I don’t know whether the Trump tariffs will be factored in or not."

For the fourth quarter, the Japanese automaker is expected to deliver a 2% year-on-year rise in operating profit to ¥1.13 trillion ($7.86 billion) according to the average of seven analysts surveyed by LSEG, a result that would mark the first increase in three quarters.