Sumitomo Rubber Industries (5110) investor relations material

Executive summary

• Sales revenue for Jan–Jun 2026 reached ¥619.8B, up 8.3% year-over-year, with tire sales up 9.4% to ¥534.4B.

• Business profit rose 41% year-over-year to ¥39.8B, exceeding forecasts, driven by cost reductions and favorable FX.

• Profit attributable to owners increased 79.9% year-over-year to ¥25.9B.

• The group advanced its Mid-Term Plan 2023-2027, focusing on global brand management and the DUNLOP brand.

• SYNCHRO WEATHER tire sales in Japan grew fivefold YOY.

Financial highlights

• H1 2026 operating profit was ¥38.1B (+41% YOY), and profit attributable to owners was ¥25.9B (+80% YOY).

• Gross profit for the period was ¥194.2B, up from ¥166.2B year-over-year.

• Basic profit per share increased to ¥98.40 from ¥54.66 year-over-year.

• Comprehensive income reached ¥51.7B, reversing a prior year loss.

• Cash and cash equivalents at period end were ¥98.7B, up from ¥86.0B year-over-year.

Outlook and guidance

• FY2026 sales revenue forecast raised to ¥1,330.0B (+10.2% YOY), business profit forecast at ¥96.0B, and profit at ¥55.0B.

• Annual tire sales volume expected to rise 2% YOY, but revised down 3 points from previous forecast.

• Despite positive factors like price revisions and cost reductions, profit is expected to fall below previous forecasts due to lower sales volume and higher costs.

• Dividend payout ratio targeted at 40%+ with annual dividend forecast at ¥84/share.