Sumitomo Rubber Industries (5110) Q3 2025 earnings summary

Executive summary

• Sales revenue for Q3 2025 reached ¥289.4B, with business profit at ¥20.2B and operating profit at ¥19.1B; profit attributable to owners was ¥11.6B, reflecting year-on-year growth in both sales and profit.

• Sales revenue for the nine months ended September 30, 2025, decreased 1.5% year-over-year to ¥861,609 million, with business profit down 21.1% to ¥48,507 million, but operating profit surged 301.7% to ¥46,133 million and profit attributable to owners of parent rose 542.3% to ¥26,013 million.

• Expansion of SYNCHRO WEATHER tire sizes and DUNLOP brand presence in the U.S., Australia, and Europe, with new sales initiatives and development teams established; DUNLOP brand launched in North America and Oceania.

• Project ARK launched to address U.S. tariffs, targeting ¥13.0B in cost reductions and ¥3.0B profit increase by year-end.

• Tire sales volume declined due to market stagnation and discontinuation of low-profit products, but business profit improved in the July–September quarter.

Financial highlights

• Consolidated sales revenue for Jan–Sep 2025 was ¥861.6B, down 1.5% year-over-year; business profit was ¥48.5B, down from ¥61.5B; operating profit rose to ¥46.1B from ¥11.5B; profit attributable to owners increased to ¥26.0B from ¥4.0B.

• Gross profit for the nine months was ¥252,664 million, down from ¥260,092 million year-over-year.

• Basic profit per share increased to ¥98.93 from ¥15.40 year-over-year.

• Cash flows from operating activities rose to ¥85,814 million from ¥66,584 million, while investing activities used ¥154,262 million, up from ¥55,052 million.

• Cost of sales improved by ¥5.9B, but SG&A expenses increased by ¥5.6B year-over-year.

Outlook and guidance

• Full-year 2025 sales revenue forecast revised to ¥1,200.0B, with business profit projected at ¥95.0B (7.9% margin), operating profit at ¥84.0B (7.0% margin), and profit attributable to owners at ¥45.0B.

• ROE and ROIC both forecast at 6.8% for 2025.

• Basic profit per share for the full year is forecast at ¥171.16.

• The forecast maintains initial expectations due to lower raw material prices, yen depreciation, and easing US tariff impacts, despite lower tire sales volume.

• Tire segment expected to contribute ¥1,035.0B in sales and ¥84.0B in business profit for 2025.