Toyota, Honda Gear Up For Tough Earnings Week After Nissan’s $1.8B Warning Rattles Japan’s Auto Sector

• Toyota’s quarterly profit is expected to fall to its lowest level since 2023, weighed down by higher supply-chain costs and tariffs, despite steady hybrid demand in the U.S. and modest growth in China.
• Honda’s operating profit is forecast to drop about 15%, with analysts citing weaker Asian sales and declining motorcycle demand in Vietnam.
• Japan’s automakers continue to face headwinds from a stronger yen, rising production costs, and shifting U.S. trade policies that threaten export margins.

Toyota Motor and Honda Motor are preparing to report quarterly results this week amid growing pressure on Japan’s auto sector, after Nissan Motor shocked investors by forecasting an operating loss of 275 billion yen ($1.8 billion) for the year.

The country’s major carmakers are grappling with tariffs, a stronger yen, and rising production costs, while shifting U.S. trade policies threaten to limit access to one of their most profitable markets. Domestically, vehicle sales have declined steadily, according to a Bloomberg report.

Toyota’s Profit Set to Hit Post-2023 Low

Toyota’s quarterly operating profit likely fell to its weakest since 2023 as supply-chain support costs and tariffs bit.

Sales in the U.S. were lifted by robust demand for hybrid models, and China posted modest growth. However, domestic sales in Japan weakened, which dented results. The world’s largest automaker had already cut its full-year profit forecast by 16% earlier this year, and the company may face scrutiny over its planned buyout of Toyota Industries during the upcoming earnings call.

Honda Faces Tariff Pain And Weaker Asia Demand

Honda Motor is also expected to report softer results on Friday, with analysts at Citi warning of risks from tariff impacts and weaker Asian sales.

Earnings from its motorcycle division, which is traditionally a key profit driver, are projected to decline due to worsening market conditions in Vietnam since August. Overall, Honda’s operating profit is seen down about 15%, reflecting the broader challenges facing Japanese automakers as global trade pressures intensify.

Stocktwits Traders Show Mixed Sentiment

On Stocktwits, Toyota saw ‘neutral’ sentiment amid ‘high’ message volume, Honda drew ‘extremely bearish’ sentiment on ‘low’ activity, while Nissan registered ‘bullish’ sentiment with ‘low’ message volume.

So far this year, Nissan shares are down 22%, while Toyota and Honda have gained 8% and 9%, respectively.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on