Consolidated Financial Performance (FY2025)
Revenue JPY 4,429.5 billion; adjusted operating profit JPY 493.7 billion, up 2% YoY (JPY +10.4 billion); profit attributable to owners JPY 327.3 billion, up 15% YoY (approx. JPY +42 billion). Adjusted OPM improved to 11.1% (+0.4 percentage points YoY) and ROIC improved to 8.3% (+0.2 points).
Business Cost Reductions and Rebuilding Progress
Business cost reduction initiatives generated ~JPY 72 billion of effects in FY2025; management states business rebuilding (Stage 2) for tire operations in U.S. and Europe was largely completed as planned, supporting improved profitability and business quality.
Cash Flow, Capital Returns and Balance Sheet Actions
Free cash flow was a JPY 45.5 billion inflow; operating cash inflow improved by JPY 141.7 billion YoY through tighter working capital. Company completed planned buybacks and cancelled acquired shares; announced FY2026 share buyback of JPY 150 billion (JPY 450 billion total FY2024–FY2026) and dividend increases (FY2025 dividend up JPY 20; FY2026 guidance: pre-split JPY 250 per share, up JPY 20).
Region-Level Margin Improvements
North America: sales down 3% but adjusted operating margin improved by 1.5 points to 11%, producing higher profits. Europe: adjusted operating margin reached 5.5%, up over 2 points YoY with profit growth. Asia/Oceania/India/China: revenue down 2% (currency and mix effects) but adjusted operating profit margin strong at 11.5% due to Thai rebuilding and India growth.
Product & Technology Initiatives to Drive Growth
FY2026 plan to launch >25 new passenger tire products globally (about double recent-year average) and >10 new truck & bus (TB) products. New executive structure to prioritize technology: 4 of 7 executive officers will be technical specialists (Chief Innovation Officer, Chief Product Officer, Chief Manufacturing Officer, West CTO). Management plans R&D and CapEx above the past two years to support product and manufacturing excellence.
FY2026 Financial Guidance
Guidance projects revenue JPY 4.5 trillion (+2% YoY), adjusted operating profit JPY 515 billion (+4% YoY), net profit JPY 340 billion, and adjusted OPM ~11.4% (+0.3 points YoY).