The Yokohama Rubber Company (5101) investor relations material

Executive summary

• Achieved strong 1H FY2026 results, with sales revenue and profits exceeding both plan and prior year levels, reaching record highs in all key earnings categories.

• Introduced the next medium-term plan, YX2029, targeting continued profitable growth and global expansion.

• Strong performance was driven by higher sales of high-value-added tires, increased OHT business volume, and cost reduction efforts.

Financial highlights

• 1H FY2026 sales revenue: ¥639.4bn, up ¥60.2bn year-over-year and ¥29.4bn above plan; business profit up 54.3% to ¥95,846 million; operating profit doubled to ¥109,699 million.

• Net profit: ¥72.6bn, up ¥37.0bn YoY and ¥27.6bn above plan; basic earnings per share more than doubled YoY to ¥461.62.

• Gross profit for 1H 2026 was ¥247,424 million, up from ¥197,912 million in the prior year period.

• Total comprehensive income reached ¥107,050 million, a significant turnaround from a loss of ¥8,410 million a year earlier.

• Cash and cash equivalents increased to ¥147,059 million as of June 30, 2026.

Outlook and guidance

• FY2026 sales revenue guidance raised to ¥1,320bn, business profit to ¥192.5bn (14.6% margin), and profit attributable to owners projected at ¥117,000 million (+30.5%).

• Basic earnings per share for the full year is forecast at ¥744.11.

• Dividend payout ratio revised to 30% for FY2026, with annual dividend of ¥223/share, up from ¥134 in 2025.

• ROE target remains above 10%, equity capital ratio at 50%.