The Yokohama Rubber Company (5101) Q4 2024 earnings summary

Executive summary

• FY2024 sales revenue reached ¥1,094.7 billion, up 11.1% year-over-year, with business profit at ¥134.4 billion, a 35.6% increase from FY2023.

• Operating profit rose to ¥119.2 billion, net profit to ¥74.9 billion, and ROE held at 9.2%.

• Major acquisitions, including Goodyear OTR, expanded the OHT segment, positioning the company as a leader in both premium and value tire markets.

• Tire segment accounted for 89.6% of sales, with strong OE and replacement tire sales in Japan and overseas.

• Launched Yokohama Transformation 2026 (YX2026) medium-term plan focused on growth and transformation.

Financial highlights

• Sales revenue: ¥1,094.7 billion (+11.1% YoY); business profit: ¥134.4 billion (+35.6% YoY); operating profit: ¥119.2 billion (+18.7% YoY).

• Net income attributable to owners: ¥74.9 billion (+11.4% YoY); EPS: ¥467.81.

• Shareholder return for FY2024 was ¥98 per share, up ¥14 year-over-year; planned FY2025 dividend: ¥102 per share.

• Total assets: ¥1,735.5 billion (+8.4% YoY); equity ratio: 51.5%.

• Cash and cash equivalents at year-end: ¥136.2 billion.

Outlook and guidance

• FY2025 sales revenue projected at ¥1,220.0 billion, up 11.4% year-over-year.

• Business profit expected to rise to ¥138.0 billion, with operating profit at ¥132.0 billion and net profit at ¥81.5 billion.

• Business profit margin forecasted to decrease to 11.3% from 12.3%.

• Assumes USDJPY 148 and EURJPY 155.

• Dividend forecast for FY2025: ¥102 per share.