Toyota Raises Annual Profit Forecast and Announces $89 Billion Shareholder Return Plan
Toyota has significantly raised its annual operating profit forecast to 3.9 trillion yen ($24.6 billion), a 15% increase from previous estimates, driven by robust sales of hybrid vehicles. The automaker's strategic focus on petrol-electric hybrids has allowed it to defy broader industry trends and mitigate the impact of surging fuel costs and weakening EV demand that have plagued competitors. In addition to the improved outlook, Toyota announced a massive shareholder return plan totaling up to 14 trillion yen ($89 billion) through March 2031. This move aims to address long-standing investor frustration regarding the company's large cash reserves and is intended to bolster return on equity. Following the announcement, Toyota shares surged 17%, marking their largest single-day gain in nearly four decades.