The Yokohama Rubber Company (5101) Q4 2025 earnings summary

Executive summary

• Achieved record-high sales revenue of ¥1,235.0 billion for FY2025, up 12.8% year-over-year, with strong growth in both tire and MB segments, marking the fifth consecutive year of record sales and profits.

• Business profit reached ¥166.6 billion, a 24.0% increase year-over-year, and profit attributable to owners of parent rose 40.7% to ¥105.4 billion.

• Tire segment accounted for 90.8% of consolidated sales, driven by strong OE and replacement sales, and the acquisition of Goodyear's OTR business.

• MB segment posted stable revenue and improved profitability, achieving a business profit margin of 10.5%.

• Fourth quarter performance was particularly strong, with sales revenue up 14.7% and profit up 179.0% year-over-year.

Financial highlights

• Sales revenue: ¥1,235.0 billion (+12.8% YoY); business profit: ¥166.6 billion (+24.0% YoY); operating profit: ¥152.9 billion (+28.3% YoY); net profit: ¥105.4 billion (+40.7% YoY).

• Q4 sales revenue: ¥357.8 billion (+14.7% YoY); Q4 business profit: ¥65.9 billion (+29.2% YoY); Q4 net profit: ¥39.3 billion (+179.0% YoY).

• Basic EPS: ¥668.55 (vs. ¥467.81 in FY2024).

• Total assets: ¥1,998,360 million (up ¥262,816 million YoY); total equity: ¥1,040,231 million (up ¥136,217 million YoY).

• Record-high profit margins: business profit margin at 13.5% for the year and 18.4% in Q4.

Outlook and guidance

• FY2026 sales revenue forecasted at ¥1,300.0 billion (+5.3% YoY); business profit expected to rise to ¥188.0 billion (+12.9% YoY); operating profit projected at ¥173.0 billion.

• Net profit expected to decrease to ¥90.0 billion (-14.6% YoY) due to unspecified factors.

• Annual dividend for FY2026 planned at ¥172 per share, up from ¥134 in FY2025.

• Management targets: business profit margin 14.5%, equity ratio 50%, ROE above 10%.

• First half of FY2026 sales revenue forecasted at ¥610.0 billion (+5.3% YoY); business profit at ¥75.0 billion (+20.7% YoY).