Toyo Tire (5105) Q2 2026 earnings summary

Executive summary

• Operating income for the first half of FY2026 declined 22.2% year-over-year to 37.5 billion yen, impacted by weak tire markets in the U.S. and a computer system issue in Japan.

• Net sales for 1H FY2026 were 284.2 billion yen, a slight increase of 0.3% year-over-year.

• The computer system issue reduced operating income by 4.2 billion yen through June, with shipment disruptions now resolved.

• Full-year operating income forecast was revised downward to 90.0 billion yen, while the annual dividend per share remains at 135 yen.

• Ordinary income fell 9.9% year-over-year to 39.4 billion yen; net profit attributable to owners decreased 11.7% to 29.4 billion yen.

Financial highlights

• 1H FY2026 net sales: 284.2 billion yen (+0.3% YoY); operating income: 37.5 billion yen (-22.2% YoY); net profit attributable to owners: 29.4 billion yen (-11.7% YoY).

• Interim dividend per share increased to 65 yen (+5 yen YoY).

• 2026 full-year forecast: net sales 638.0 billion yen (+7.2% YoY), operating income 90.0 billion yen (-7.6% YoY), net profit 62.0 billion yen (-2.5% YoY).

• Gross profit for the six months ended June 30, 2026, was 110.9 billion yen, down from 115.0 billion yen YoY.

• Selling, general and administrative expenses increased to 73.4 billion yen from 66.8 billion yen YoY.

Outlook and guidance

• Full-year operating income forecast revised down to 90.0 billion yen from 94.0 billion yen due to first-half challenges.

• Net sales expected to grow 7.2% year-over-year, with a stable annual dividend forecast.

• Efforts underway to recover production and sales in the second half following resolution of system issues.

• Capital ratio increased by 2.2 points to 71.6% at the end of the second quarter.