The Yokohama Rubber Company (5101) Q1 2025 earnings summary

Executive summary

• Sales revenue for Q1 FY2025 rose 9.0% year-over-year to ¥275.1bn, driven by strong tire segment growth and the Goodyear OTR acquisition.

• Net profit declined 56.9% year-over-year to ¥8.5bn, mainly due to one-time acquisition costs and amortization.

• Tire business saw strong global unit sales growth, especially in Japan and Europe, with high-value tire sales expanding.

• OHT business profit recovered sequentially and benefited from the Goodyear OTR acquisition.

• MB segment sales decreased 3.2% year-over-year, but profit increased due to product mix and reforms.

Financial highlights

• 1Q FY2025 sales revenue: ¥275.1bn (+9.0% YoY); business profit: ¥24.1bn (-3.2% YoY); operating profit: ¥19.3bn (-27.7% YoY); net profit: ¥8.5bn (-56.9% YoY).

• Gross profit for Q1 2025 was ¥91.2bn, up from ¥86.2bn in Q1 2024.

• Basic earnings per share for Q1 2025 was ¥53.74, down from ¥123.46 in Q1 2024.

• Total assets increased to ¥1,807.2bn as of March 31, 2025, up from ¥1,735.5bn at year-end 2024.

• Net cash used in investing activities was ¥162.7bn, mainly for the Goodyear OTR acquisition.

Outlook and guidance

• Full-year FY2025 guidance unchanged: sales revenue ¥1,220bn (+11.4% YoY), business profit ¥138bn (+2.7% YoY), net profit ¥81.5bn (+8.8% YoY).

• Operating profit for the year is projected at ¥132bn (+10.8% YoY); dividend forecast is ¥102.00 per share.

• No changes to segment forecasts; OHT and MB businesses expected to contribute to profit growth.

• Tariff impacts estimated at ¥16.5bn for 2025, with offsetting measures in place.