The Yokohama Rubber Company (5101) Q3 2025 earnings summary

Executive summary

• Achieved record high sales revenue and business profit for 3Q and the first nine months of FY2025, with 1-3Q sales revenue up 12.0% YoY to ¥877,189 million and business profit up 20.8% to ¥100,725 million.

• Profit attributable to owners of the parent increased 8.7% YoY to ¥66,124 million.

• Tire segment accounted for 90.7% of consolidated sales, with strong growth in both OE and replacement tire sales, and significant contribution from the acquired OTR business.

• Progress continues on technology and production transformation initiatives under the YX2026 plan, focusing on cost reduction, rapid product development, and premium OE tire development.

Financial highlights

• 3Q sales revenue reached ¥298.0bn, up 15.7% YoY; 1-3Q sales revenue was ¥877.2bn, up 12.0% YoY.

• 3Q business profit before PPA amortization was ¥42.2bn (+36.4% YoY), with a profit margin of 14.1% (+2.1pp YoY).

• 1-3Q business profit after PPA amortization was ¥100.7bn (+20.8% YoY), with a margin of 11.5% (+0.8pp YoY).

• Gross profit for the nine months was ¥305,963 million, up from ¥274,506 million YoY.

• Basic earnings per share increased to ¥419.08 from ¥379.42 YoY.

Outlook and guidance

• FY2025 full-year plan targets record high sales revenue of ¥1,235.0bn (+12.8% YoY) and business profit of ¥153.0bn (+13.9% YoY).

• Aims to achieve FY2026 business profit target one year ahead of schedule.

• Annual dividend forecast is ¥112.00 per share, up from ¥98.00 in the previous year.

• No revisions to the previously announced earnings forecast.

• Impact from US and India tariffs (¥14.0bn) expected to be absorbed by price increases, volume growth, and internal improvements.