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Financial results presentation5105Toyo Tire CorporationAutomobiles and transportation equipment

First-Quarter Financial Results Briefing Materials for Fiscal 2026

In the first quarter of FY2026, revenue and operating profit were below the year-earlier period due to lower unit sales. Ordinary profit and net profit increased, mainly because the foreign exchange loss recorded in the year-earlier period did not recur. The full-year forecast was unchanged.

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Financial results presentationFY2026 First Quarter8 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥130,951 million-3.4%
Operating profit¥20,610 million-8.1%
Ordinary income¥21,352 million+17.0%
Net income¥15,476 million+14.6%
Operating profit margin15.7 %
Results for the three months of the current quarter
Net Sales
¥130,951 million
Operating profit
¥20,610 million
Ordinary income
¥21,352 million
Quarterly net income
¥15,476 million
Full-year earnings forecast
Net Sales
¥620,000 million
Operating profit
¥94,000 million
Ordinary income
¥82,000 million
Net income for the current fiscal year
¥54,000 million
Annual dividend
¥135
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Sales factors-¥400 million
  • Manufacturing Costs-¥900 million
  • Selling, general and administrative expenses+¥3.9 billion
  • Impact of higher raw material prices+¥100 million
  • Foreign Exchange-¥300 million
  • Impact of higher ocean freight and other costs+¥100 million
  • Tariff impactDown ¥4.2 billion
  • Automotive parts business+¥100 million
  • Other-¥0.0 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • U.S. dollar exchange rate¥145
  • Euro exchange rate¥170
  • FY2026 projected tire production volume248.2 thousand tonnes
  • Impact of changes in natural rubber prices¥5 100 million, operating profit basis
  • Impact of changes in petrochemical product prices¥-14 100 million, operating profit basis
New initiatives
  • Construction of a Serbia R&D center, scheduled to begin operations in January 2027
  • Consolidation of production, sales and R&D functions in Europe
  • Launch of the M177+ tire for trucks and buses
  • Launch of the M630 all-weather tire for heavy-duty four-axle low-floor trucks
Key KPIsA metric the company considers important as a management benchmark.
  • Tire production volume54.4 thousand tonnes
    Year on year against the same period last year+92.0%
  • Total tire unit sales89 % year on year
  • Domestic and overseas new-vehicle sales volume117 % year on year
  • Domestic replacement sales volume67 % year on year
  • Overseas replacement sales volume85 % year on year
  • Equity ratio72.5 %
  • D/E ratio0.16 times
Segment results
Tires
Net Sales
¥119,329 million-3.6%
Operating profit
¥20,042 million-8.5%
Automotive Components
Net Sales
¥11,622 million-1.1%
Operating profit
¥567 million+11.3%
Other
Operating profit
¥0 million-92.9%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
¥166 100 million, operating profit basis
DetailsImpact of the situation in the Middle East on raw materials, ocean transportation, energy costs and other expenses
Capital expenditures
¥94 100 million; FY2026 first-quarter actual. FY2026 plan: ¥49.0 billion
Annual Dividend
Annual
¥135
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFY2026 First Quarter
Net Sales¥130,951 million (YoY -3.4%)
Operating profit¥20,610 million (YoY -8.1%)
Ordinary income¥21,352 million (YoY +17.0%)
Net income¥15,476 million (YoY +14.6%)
Operating profit margin15.7 %
Results for the three months of the current quarterNet Sales ¥130,951 million / Operating profit ¥20,610 million / Ordinary income ¥21,352 million / Quarterly net income ¥15,476 million
Full-year earnings forecastNet Sales ¥620,000 million / Operating profit ¥94,000 million / Ordinary income ¥82,000 million / Net income for the current fiscal year ¥54,000 million / Annual dividend ¥135
Segment resultsTires Net Sales ¥119,329 million (YoY -3.6%) / Operating profit ¥20,042 million (YoY -8.5%) / Automotive Components Net Sales ¥11,622 million (YoY -1.1%) / Operating profit ¥567 million (YoY +11.3%) / Other Net Sales Not disclosed / Operating profit ¥0 million (YoY -92.9%)
Breakdown of Factors Affecting the ChangeFactors Sales factors / Amount -¥400 million, Factors Manufacturing Costs / Amount -¥900 million, Factors Selling, general and administrative expenses / Amount +¥3.9 billion, Factors Impact of higher raw material prices / Amount +¥100 million, Factors Foreign Exchange / Amount -¥300 million, Factors Impact of higher ocean freight and other costs / Amount +¥100 million, Factors Tariff impact / Amount Down ¥4.2 billion, Factors Automotive parts business / Amount +¥100 million, Factors Other / Amount -¥0.0 billion
Key KPIsIndicator name Tire production volume / Value 54.4 thousand tonnes / Year on year against the same period last year 92 thousand tonnes, Indicator name Total tire unit sales / Value 89 % year on year, Indicator name Domestic and overseas new-vehicle sales volume / Value 117 % year on year, Indicator name Domestic replacement sales volume / Value 67 % year on year, Indicator name Overseas replacement sales volume / Value 85 % year on year, Indicator name Equity ratio / Value 72.5 %, Indicator name D/E ratio / Value 0.16 times
Assumptions Underlying the Business OutlookItem U.S. dollar exchange rate / Value ¥145, Item Euro exchange rate / Value ¥170, Item FY2026 projected tire production volume / Value 248.2 thousand tonnes, Item Impact of changes in natural rubber prices / Value ¥5 100 million, operating profit basis, Item Impact of changes in petrochemical product prices / Value ¥-14 100 million, operating profit basis
Risk amount incorporated into the outlookAmount ¥166 100 million, operating profit basis / Details Impact of the situation in the Middle East on raw materials, ocean transportation, energy costs and other expenses
Annual DividendAnnual ¥135 / Interim Not disclosed / End of period Not disclosed
Capital expenditures¥94 100 million; FY2026 first-quarter actual. FY2026 plan: ¥49.0 billion
New initiativesConstruction of a Serbia R&D center, scheduled to begin operations in January 2027, Consolidation of production, sales and R&D functions in Europe, Launch of the M177+ tire for trucks and buses, Launch of the M630 all-weather tire for heavy-duty four-axle low-floor trucks
Items this document does not state (14)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesMedium-term management plan targetsFinancial targetsPayout ratioAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Lower unit sales were a factor behind the declines in revenue and operating profit. Ordinary profit increased because the impact of the foreign exchange loss recorded in the year-earlier period did not recur. For FY2026, the company expects the impact of the situation in the Middle East to reduce operating profit by ¥16.6 billion, but plans to absorb it through price pass-through, procurement negotiations, an improved sales mix, and cost reductions.

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First-Quarter Financial Results Briefing Materials for Fiscal 2026 | Toyo Tire Corporation (5105) timely disclosure | Komori