Toyo Tire (5105) Q4 2024 earnings summary

Executive summary

• Achieved record-high FY2024 revenue of ¥565.4 billion (+2.3% YoY), with operating profit at ¥94.0 billion (+22.2% YoY) and net income at ¥74.8 billion (+3.5% YoY), both all-time highs since the 2013 fiscal period change.

• Tire business revenue grew 2.8% and operating profit 20.0%, while auto parts revenue declined 3.9% but operating profit surged 954.6%.

• FY2025 guidance: revenue ¥585.0 billion (+3.5% YoY), operating profit ¥85.0 billion (−9.6% YoY), net income ¥50.0 billion (−33.2% YoY).

• Annual dividend for FY2024 set at ¥120/share (up from ¥110), with FY2025 forecast at ¥125/share.

• Cash and equivalents at year-end rose to ¥86,333 million, and equity ratio improved to 65.4%.

Financial highlights

• FY2024 revenue: ¥565.4 billion (+2.3% YoY); operating profit: ¥94.0 billion (+22.2% YoY); net income: ¥74.8 billion (+3.5% YoY).

• Operating margin improved to 16.6%; EPS: ¥485.86; BPS: ¥3,069.02.

• Free cash flow positive at ¥51.8 billion; operating cash flow ¥67.1 billion.

• Dividend per share increased to ¥120, payout ratio 24.7%.

• Net assets rose by ¥77.4 billion to ¥472.6 billion, driven by profit retention and FX gains.

Outlook and guidance

• FY2025 revenue forecast: ¥585.0 billion (+3.5% YoY); operating profit: ¥85.0 billion (−9.6% YoY); net income: ¥50.0 billion (−33.2% YoY).

• Operating margin expected to decrease to 14.5%; dividend payout ratio to remain above 30%.

• Assumes USD/JPY at 146 (vs. 151 in FY2024), EUR/JPY at 156 (vs. 164).

• Dividend forecast for FY2025 is ¥125 per share.