Consolidated Revenue and Profit Growth (FY2025)
Consolidated revenue JPY 4,429.5 billion and adjusted operating profit JPY 493.7 billion; consolidated revenue/profit improved year-on-year (overall ~+2% vs prior year reported) and adjusted operating margin improved to 11.1% (up 0.4ppt excluding FX).
Net Income and ROIC Improvement
Profit attributable to owners JPY 327.3 billion, up ~15% (~JPY 42 billion) year-on-year; ROIC improved to 8.3% (up 0.2ppt YoY).
Strong Cash Generation and Capital Returns
Free cash flow inflow JPY 435.5 billion and operating cash flow improved by JPY 141.7 billion YoY; completed planned share buyback program (acquired shares cancelled) and committed to JPY 150 billion buyback in FY26 (JPY 450 billion total FY24–26).
Material Business Cost Reductions Realized
Business cost reduction activities generated effects of approximately JPY 72 billion in FY25, supporting margin and profitability recovery.
Regional Profitability Improvements
Europe adjusted operating profit margin reached 5.5% (improvement of >2pp YoY); North America margin improved by 1.5pp to ~11% despite sales decline; Asia/Oceania/India/China maintained adjusted operating profit of 11.5% after regional rebuilding and Indian growth.
Business Rebuilding Largely Completed
Company states Stage 2 of rebuilding (2024–2025) largely completed – including U.S. and Europe tire operation restructuring, product diversification and Japan/Asia operational streamlining – enabling transition to growth-with-quality.
FY2026 Guidance: Modest Topline and Profit Growth
FY26 guidance projects revenue JPY 4.5 trillion (+~2% YoY), adjusted operating profit JPY 515 billion (+4% YoY) and net profit JPY 340 billion; adjusted OPM projected ~11.4% (+0.3ppt).
Planned Product & Investment Push
Plan to launch 25+ new passenger tire products and 10+ truck & bus products in FY26; R&D and CapEx to exceed past two years with FY26 CapEx ~JPY 410 billion (focus on high-margin products, MasterCore large tires, HRD, US retail and IT).
Portfolio & Solutions Momentum
Tire business achieved adjusted OPM just under 13%; Solutions/Commercial B2B Solutions expanded revenue and profitability with margins >11%, supporting diversification of earnings base.
Dividend Increase
Dividend guidance raised: FY25 dividend increased by JPY 20 (company comment), FY26 dividend JPY 125 post-split (JPY 250 pre-split), indicating commitment to shareholder returns alongside buybacks.