Toyota Industries Corporation (TICO) has revised down its forecasts for the 2026 Financial Year and reported a Q2 operating loss of JPY14.9 billion (USD96.6 million), due to a USD299.5 million dollar payout for a class-action lawsuit in the US around forklift engine certification.

TICO’s forecast JPY180 billion operating profit has been revised to JPY100 billion, a decrease of 44.4% while forecast profit before income and taxes has been downgraded from JPY310 billion to 230 billion, a drop of 25.8%.

In a revision of Forecast of Financial Results for FY2026, TICO says: “Regarding net sales…volumes in the Automobile Segment and the Material Handling Equipment Segment are lower than initial expectations”.

“Profit has been revised down to account for a settlement payment and customer support expenses related to the US class-action lawsuit stemming from the forklift engine certification issue, as well as the impact from US tariffs,” TICO’s statement continues.

“There will be no changes to the dividend forecast (no dividend) resulting from this revision of the forecast.”

In March this year, TICO moved to settle the class action it was facing in the US following the March 2023 admission some of the engines on forklifts it had exported to the US, exceeded Japanese emissions regulation values.

Falsification included the use of estimated values instead of the actual measurements, the changing of engine parts during the course of testing and other irregularities.

Hino Motors Ltd., another Toyota group company, was also found in 2022 to have falsified emissions test results, a practice that dated back nearly 20 years.