Toyota stock surges as hybrid sales, weaker yen boost profit forecast

Toyota shares rose 10% after raising its profit forecast to ¥3.9 trillion and announcing an $89 billion shareholder return plan. Operating profit for July-September increased 34% to ¥1.13 trillion, driven by a weaker yen, hybrid sales, and lower US tariffs. Analysts note the company's cash reserves and potential upside, though a stronger yen could impact future earnings.

Toyota (NYSE: TM) raised its full-year profit forecast to 3.57tn yen, up from 3.25tn yen, despite a slight revenue forecast reduction. Shares rose over 15% in Tokyo and 9.5% in US trading. The company cited strong US hybrid demand and a weaker yen. Q2 net profit fell to 759.4bn yen. Analysts expected higher profits, and China sales remain a risk.

Toyota raised its yearly forecast due to strong hybrid vehicle demand, announced an $89B investor payout, and saw shares jump 17% in a day. The rally followed a shift in investor focus toward blue-chip stocks. According to the company, its performance is notable amid challenges facing traditional automakers.

Toyota's shares rose 9% in premarket trading after reporting higher-than-expected quarterly operating profit and raising its full-year operating income forecast, despite lowering its sales outlook.

Toyota has appointed Mark Templin as CEO of its North American business, effective January 1. Templin succeeds Tetsuo Ogawa, who will return to Toyota Motor Corporation in Japan. Christopher Reynolds will become non-executive chairman of Toyota Motor North America's board. Templin and Reynolds have extensive experience with Toyota's North American operations, which sold over 2.5 million vehicles in the U.S. last year, an 8% increase from 2024.

Toyota Motor North America announced Mark Templin will become CEO on Jan. 1, 2027, succeeding Ted Ogawa. Ogawa will return to Toyota Motor Corporation in Japan. Templin, currently COO, will lead North American operations. Toyota has invested heavily in U.S. manufacturing, including a $14B battery plant and a $3.6B expansion in San Antonio.