The Yokohama Rubber Company (5101) investor relations material

Executive summary

• Achieved record high sales revenue of ¥303.8 billion in Q1 FY2026, up 10.4% year-over-year, with business profit before PPA amortization at ¥48.1 billion, a 60.4% increase, and operating profit up 34.5% to ¥26.0 billion, despite a ¥13.0 billion one-time U.S. plant closure expense.

• Profit attributable to owners of parent rose 72.6% to ¥14.7 billion, and comprehensive income reached ¥26.3 billion, reversing a prior-year loss.

• Strong performance was driven by increased sales of high-value-added and high-inch tires, OHT business growth, and cost reduction initiatives.

Financial highlights

• Sales revenue increased by ¥28.7 billion year-over-year, with a positive exchange rate impact of ¥17.7 billion.

• Gross profit for Q1 2026 was ¥118,010 million, up from ¥91,214 million in Q1 2025.

• Business profit margin improved to 14.6% from 8.7% year-over-year.

• Cash and cash equivalents at quarter-end were ¥93.6 billion, up ¥4.2 billion from the previous year.

• Basic earnings per share increased to ¥93.62 from ¥53.74 year-over-year.

Outlook and guidance

• Full-year FY2026 sales revenue forecast at ¥1,300.0 billion, up 5.3% year-over-year, with business profit before PPA amortization projected at ¥201.4 billion (+9.5% YoY) and profit attributable to owners at ¥109.0 billion (+26.6% YoY).

• Basic earnings per share for the year is forecast at ¥693.36.

• Dividend forecast for FY2026 is ¥172.00 per share, up from ¥134.00 in FY2025.

• No changes from previous segment forecasts for the first half and full year.