What is Toyota Motor's latest dividend and current dividend yield?

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What were the key takeaways from Toyota Motor's earnings call?

What is Toyota Motor's gross profit margin?

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Did Toyota Motor beat or miss consensus estimates last quarter?

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What were the key takeaways from Toyota Motor’s earnings call?

- **Strong Q2 Results**: Operating income JPY 2.0056T despite U.S. tariffs, driven by 5.267M vehicle sales (104.7% YoY) and 46.9% electrified vehicles.
- **Dividend Growth**: Interim dividend up 12.5% to JPY 45/share; FY26 dividend forecast JPY 95/share (+11.1%).
- **Hybrid Dominance**: HEVs grow 200K YoY; BEVs underperform, with no change to 3.5M 2030 BEV target.
- **U.S. Expansion**: Planning significant investment in U.S. production, including battery plant, to capitalize on strong demand.
- **Tariff Mitigation**: Offset JPY 1.45T tariff impact with JPY 0.9T cost improvements; no price hikes despite tariffs.
- **Strategic Moves**: Launch new Century brand, expand value chain profits (JPY 2T/year), and maintain 3M/year domestic production.

**【CFO Financial Summary】**
- Q2 operating income: JPY 2.0056 trillion (FY26H1: JPY 2 trillion), driven by strong global demand despite U.S. tariffs.
- Sales revenue: JPY 24.63 trillion; net income: JPY 1.7734 trillion.
- Full-year forecast: Operating income JPY 3.4 trillion, sales JPY 29 trillion, net income JPY 2.93 trillion.
- Vehicle sales up 5.267 million units (104.7% YoY), with 46.9% electrified vehicles (HEVs dominant).
- Interim dividend raised to JPY 45/share (FY26: JPY 95/share), with JPY 3.2 trillion share buyback program.
- U.S. tariffs impact: JPY 1.45 trillion FY26, offset by cost improvements (+JPY 0.9 trillion).

**【Q&A Highlights】**
- **Earnings Power**: Maintained through product competitiveness, cost control, and value chain profits (JPY 2 trillion annually from 150M owned vehicles).
- **Tariff Response**: No price hikes; instead, optimized production, model mix, and supplier collaboration.
- **EV vs. Hybrid**: Hybrid sales growing 200K YoY, while BEVs underperform expectations; focus on HEVs as core growth driver.
- **U.S. Investment**: Planning significant U.S. production expansion, including battery plant in North Carolina.
- **Domestic Production**: Maintain 3M units/year in Japan to preserve manufacturing expertise, despite rising export costs.
- **Century Brand**: Launched as premium brand, symbolizing Japan's automotive pride, with mass production plans for select models.
- **Supply Chain Risks**: Monitoring Nexperia semiconductor shortages, exploring alternatives.
- **Breakeven Volume**: Initiatives to reduce via productivity improvements, efficient pricing, and value chain optimization.

Toyota Motor Corporation (TM) Q2 2026 Earnings Call Transcript

- **Revenue Resilience**: FY2025 operating income JPY4.8T, FY2026 forecast JPY3.8T despite JPY745B FX headwind.
- **Electrification Lead**: 46.2% electrified vehicles (HEVs +850k), FY2026 BEV sales 310k vs. 2023 plan of 1.5M by 2026.
- **Profit Structure Shift**: Marginal profit up 1.6x, value chain profits >JPY2T in FY2026.
- **Tariff Strategy**: U.S. localization vs. exports, maintaining Japan's 3M annual exports for foreign currency stability.
- **Hydrogen Focus**: Commercial vehicles for cost reduction, hydrogen engine R&D for sports and passenger cars.


**【CFO Financial Commentary】**
- **FY2025 Operating Income**: JPY4.8 trillion, driven by price revisions, cost control, and value chain expansion. FY2026 forecast: JPY3.8 trillion, despite JPY745 billion FX headwind and JPY180 billion U.S. tariff impact.
- **Dividend Policy**: Full-year dividend increased to JPY90 (FY2025) and JPY95 (FY2026), despite profit decline, reflecting long-term shareholder commitment.
- **Vehicle Sales**: 9.36 million units (FY2025), with electrified vehicles at 46.2% (HEVs +850k). FY2026 forecast: 9.8 million units, 5.184 million electrified (49.8% share).
- **Profit Structure**: Marginal profit per unit up 1.6x, with value chain profits (parts, finance) exceeding JPY2 trillion in FY2026.

**【CEO Strategic Overview】**
- **Production Resilience**: FY2025 recovery to 10 million units cruising speed, emphasizing quality and TPS efficiency. Indiana plant restarts post-suspension.
- **Multi-Pathway Strategy**: Hybrid dominance (46.2% sales), BEV acceleration (5.184M FY2026), and hydrogen R&D for commercial vehicles.
- **Software-Defined Vehicles**: Toyota OS (Arene) and data monetization via connected tech, targeting 150M units in operations.
- **Global Localization**: Regional production tailored to demand (e.g., U.S. localization vs. tariffs), maintaining Japan's 3M annual exports for foreign currency stability.

**【Q&A Key Themes】**
- **U.S. Tariffs**: FY2025 impact JPY180B (Apr-May), uncertain long-term. Toyota prioritizes local production but retains export flexibility.
- **Japan Production**: 3M units maintained via supplier collaboration and cost reduction, despite U.S. tariff costs.
- **BEV Growth**: FY2026 BEV sales 310k (vs. 2023 plan of 1.5M by 2026), driven by model launches and real demand.
- **China Strategy**: Focus on coastal cities, Lexus premiumization, and BEV localization, with profitability matching local competitors.
- **Hydrogen Vision**: Commercial vehicle focus for cost reduction, with hydrogen engine R&D for sports and passenger cars.


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