Sumitomo Rubber Industries (5110) Q3 2026 earnings summary

Executive summary

• 9M revenue rose 9.6% to ¥944.3bn; business profit rose 21.7% to ¥59.0bn, operating profit 18.3% to ¥54.6bn and attributable profit 35.9% to ¥35.4bn.

• Q3 revenue grew 12% to ¥324.5bn, while business profit fell 5% to ¥19.2bn amid raw-material pressure and lower tire profitability.

• FY2026 guidance was cut to ¥1,270bn revenue, ¥87bn business profit, ¥80bn operating profit and ¥48bn attributable profit; annual dividend forecast is ¥81 per share.

• Tire sales volume edged up despite sluggish markets and Middle East tensions; DUNLOP tire sales launched in Europe in January 2026.

Financial highlights

• 9M gross profit increased to ¥291.1bn from ¥252.7bn; profit before tax was ¥50.5bn versus ¥40.5bn, and net profit was ¥37.7bn versus ¥28.3bn.

• Q3 operating profit fell 14% to ¥16.4bn and profit fell 18% to ¥9.5bn, despite higher revenue.

• 9M business profit increased ¥10.5bn: volume and mix (+¥20.2bn), price (+¥18.6bn) and forex helped, partly offset by raw materials (-¥9.5bn) and expenses (-¥16.1bn.

• 9M comprehensive income rose to ¥45.0bn from ¥24.6bn, including ¥7.3bn of other comprehensive income, mainly currency translation gains.

Outlook and guidance

• FY2026 forecast: revenue ¥1,270bn, business profit ¥87bn, operating profit ¥80bn, attributable profit ¥48bn and basic EPS ¥182.62; revenue was cut ¥60bn and business profit ¥9bn versus the prior forecast.

• Lower volume and mix (-¥3.9bn), price (-¥4.3bn), direct costs (-¥2.0bn) and expenses (-¥1.3bn) drove the business-profit reduction, partly offset by forex (+¥1.3bn).

• Full-year tire unit sales are forecast to rise 1% YoY, down 1 percentage point from the prior outlook; planned sales growth remains above industry levels in Europe and the U.S.

• Europe replacement sales are expected below the prior forecast due to weaker Dunlop off-take; North American Dunlop own-product and FALKEN WILDPEAK sales are expected to grow.