Sumitomo Rubber Industries (5110) Q2 2025 earnings summary

Executive summary

• Sales revenue for Jan–Jun 2025 was ¥572.2B, down 2.5% year-over-year, with business profit at ¥28.3B (down 33.1%) and profit attributable to owners of parent at ¥14.4B (down 62.9%).

• Despite higher raw material costs, exchange rate impacts, and increased expenses, performance was on track, aided by cost reduction initiatives.

• The Group acquired DUNLOP trademark rights for four-wheel vehicle tires in Europe, North America, and Oceania, launching business in these regions in May 2025.

• A long-term corporate strategy to 2035 was announced, focusing on premiumization and new revenue sources.

• Project ARK was launched to drive total cost reduction and business profit improvement.

Financial highlights

• Sales revenue for Jan–Jun 2025 was ¥572,192 million (down 2.5% year-over-year).

• Business profit was ¥28,310 million (down 33.1% year-over-year); operating profit ¥27,034 million (down 35.6%).

• Profit attributable to owners of parent was ¥14,374 million (down 62.9% year-over-year).

• Overseas sales accounted for 73% of total revenue.

• Basic profit per share was ¥54.66 (down from ¥147.25 year-over-year).

Outlook and guidance

• Full-year 2025 sales revenue forecast is ¥1,215,000 million, flat year-over-year.

• Business profit forecast is ¥95,000 million (up 8% year-over-year), operating profit ¥84,000 million, and profit attributable to owners of parent ¥45,000 million (up 356%).

• ROE expected to rise to 6.8% for 2025.

• Project ARK aims for a business profit margin of 10% or more by 2027.

• Premiumization and new product launches planned for North America in Jan 2026 and Europe/America in 2027.