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Toyota Expects Iran War To Affect Its Profit

Published

2 months ago

May 8, 2026

Ehijie

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Toyota expects profit in the current fiscal year, which runs through March 2027, to fall by a fifth. According to the world’s largest automaker, uncertainties regarding costs and deliveries due to the war in the Middle East are weighing on profits, despite strong demand for hybrid models driving revenue growth.

Toyota expects an operating profit of 3.0 trillion yen (over 16 billion euros), compared with a result of 3.77 trillion yen in the past fiscal year. The profit forecast is much lower than expected. Analysts had on average projected nearly 4.6 trillion yen. The automaker already reported last week that car sales in the Middle East fell sharply in March due to disruptions in deliveries to the region.

Net profit is expected to fall by 22 percent this year. In the past fiscal year, net profit already fell by more than 19 percent, partly due to the import tariffs imposed by US President Donald Trump. Revenue rose by 5.5 percent last year to 50.7 trillion yen, and for this year the company expects virtually the same revenue of 51 trillion yen. That, too, is less than analysts had expected.

Toyota’s profit forecast is the first under new CEO Kenta Kon, who took office last month. The former financial director of Toyota and assistant to Chairman Akio Toyoda is under pressure to increase profitability. He must steer the automaker through the current difficult market conditions, which are the result of US import tariffs and the war in the Middle East.