Toyo Tire (5105) Q4 2025 earnings summary

Executive summary

• Net sales for FY2025 reached a record high of ¥594.9 billion, up 5.2% year-over-year, with operating income also at a record ¥97.4 billion, despite increased costs.

• Ordinary income declined 0.8% year-over-year to ¥101.3 billion, and profit attributable to owners of parent fell 15% to ¥63.6 billion, mainly due to impairment and extraordinary losses.

• Annual dividend per share for FY2025 is set at ¥130, including a ¥5 commemorative dividend for the 80th anniversary.

Financial highlights

• Operating margin for FY2025 was 16.4%, slightly down from 16.6% in FY2024.

• Gross profit increased to ¥234.8 billion from ¥230.8 billion year-over-year.

• Profit before income taxes dropped to ¥89.2 billion from ¥101.6 billion year-over-year.

• Free cash flow for FY2025 was ¥51.8 billion, with net cash from operating activities at ¥67.1 billion.

• Net assets increased to ¥522.7 billion, up ¥50.1 billion year-over-year.

Outlook and guidance

• FY2026 net sales are forecast to rise 4.2% to ¥620 billion, but operating income is expected to decrease 3.4% to ¥94 billion.

• Profit attributable to owners of parent is projected to fall 15.1% to ¥54 billion.

• Annual dividend per share for FY2026 is forecast to increase to ¥135.

• Forex assumptions for FY2026: 1 USD = ¥145, 1 EUR = ¥170.