Toyo Tire (5105) Q2 2025 earnings summary

Executive summary

• Achieved record-high net sales of ¥283.4 billion and operating income of ¥48.2 billion for the second quarter, driven by strong North American demand for large-diameter tires.

• Ordinary income declined 26.8% year-over-year to ¥43.7 billion, and profit attributable to owners fell 20.7% to ¥33.3 billion, mainly due to foreign exchange losses from yen appreciation.

• Full-year operating income forecast raised to ¥90.0 billion, with annual dividend per share revised up to ¥130, including a commemorative dividend.

Financial highlights

• Net sales for 1H FY2025 rose 3.6% year-over-year to ¥283.4 billion; operating income up 1.3% to ¥48.2 billion.

• Ordinary income dropped 26.8% year-over-year to ¥43.7 billion; profit attributable to owners fell 20.6% to ¥33.3 billion.

• Gross profit was ¥114.95 billion, nearly flat year-over-year.

• Comprehensive income dropped sharply to ¥16.0 billion from ¥70.6 billion year-over-year, mainly due to negative foreign currency translation adjustments.

• Interim dividend per share increased by ¥10 to ¥60.

Outlook and guidance

• FY2025 net sales forecast at ¥585.0 billion, up 3.5% year-over-year; operating income forecast at ¥90.0 billion, up ¥5.0 billion from previous guidance.

• Profit attributable to owners projected at ¥56.0 billion, down 25.1% year-over-year.

• Annual dividend per share forecast at ¥130, including a ¥5 commemorative dividend.

• Dividend payout policy maintained at 30% or higher.