Toyo Tire (5105) Q1 2025 earnings summary

Executive summary

• Net sales reached 135.5 billion yen, a record high for Q1 since 2013, up 6.2% year-over-year, driven by strong North American demand for large-diameter tires.

• Operating income declined 13.7% year-over-year to 22.4 billion yen due to higher raw material and production costs.

• Ordinary income and profit attributable to owners of parent fell 42.7% and 41.4% year-over-year, respectively, impacted by foreign exchange losses from yen appreciation.

Financial highlights

• Net sales up 6.2% year-over-year to 135.5 billion yen; operating income margin at 16.5% (down from 20.4%).

• Gross profit decreased to 55.2 billion yen from 57.8 billion yen year-over-year.

• Selling, general and administrative expenses increased to 32.8 billion yen from 31.8 billion yen year-over-year.

• Comprehensive income dropped sharply to 1.3 billion yen from 36.3 billion yen year-over-year.

• Ordinary income at 18.3 billion yen (down 42.7%); profit attributable to owners of parent at 13.5 billion yen (down 41.4%).

Outlook and guidance

• FY2025 earnings and dividend forecasts remain unchanged; annual dividend per share forecast at 125 yen.

• Full-year net sales forecast at 585 billion yen (+3.5% YoY); operating income forecast at 85 billion yen (-9.6% YoY).

• Profit attributable to owners of parent forecast at 50 billion yen (-33.2% YoY); dividend payout ratio target of 30% or higher.