Komori
Presentation materials for financial results5105Toyo Tire CorporationAutomobiles and transportation equipment

FY2026 Second-Quarter Financial Results Briefing Materials

In the first half of FY2026, revenue was broadly in line with the previous year, but operating profit declined due to lower unit sales and the impact of system issues. Accordingly, the full-year operating profit forecast was reduced from ¥94.0 billion to ¥90.0 billion, while the annual dividend forecast was maintained at ¥135 per share.

Worth reading
64In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-40
Hundreds of millions of yen
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFY2026 second quarter (interim period)8 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥284,190 million+0.3%
Operating profit¥37,497 million-22.2%
Ordinary income¥39,415 million-9.9%
Net income¥29,436 million-11.7%
Operating profit margin13.2%, down 5.8 percentage points from 17.0% in the same period of the previous year
Results for the three months of the current quarter
Net Sales
¥153,238 million
Operating profit
¥16,887 million
Ordinary income
¥18,062 million
Net income
¥13,960 million
Full-year earnings forecast
Net Sales
¥638,000 million
Operating profit
¥90,000 million
Ordinary income
¥87,000 million
Net income for the current fiscal year
¥62,000 million
Operating profit margin
14.1 %
Annual dividend
¥135 per share
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year on year against the same period last year
Sales factors-55
Manufacturing Costs-14
Selling, general and administrative expenses-15
Raw Materials37
Foreign Exchange39
Impact of higher ocean freight and other costs-13
Tariff impact-85
Automotive parts business0
Other0
Total-107
System Problems
Lost sales opportunities-23
Deterioration in manufacturing costs-19
Total-42
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
US dollars¥157/USD
Euro¥183/EUR
Operating profit foreign-exchange sensitivity¥800 million per year for each ¥1 movement in the US dollar, and ¥100 million per year for each ¥1 movement in the euro
New initiatives
  • Clearing the backlog following the domestic system issues and recovering production and sales from the second half onward
  • Starting electricity procurement through an off-site PPA at the Kuwana Plant
  • Reviewing the evaluation criteria for sustainable suppliers
  • Launching the DELVEX M635 all-weather tire for light trucks and buses
Key KPIsA metric the company considers important as a management benchmark.
  • Tire production volume111.6 thousand tonnes
    Year on year against the same period last year+94.0%
  • Total tire unit sales90 % vs. same period last year
    Year on year against the same period last year-10.0%
  • Domestic and overseas new-vehicle sales volume112 % vs. same period last year
    Year on year against the same period last year+12.0%
  • Domestic replacement sales volume72 % vs. same period last year
    Year on year against the same period last year-28.0%
  • Overseas replacement sales volume88 % vs. same period last year
    Year on year against the same period last year-12.0%
  • North American unit sales95 % vs. same period last year
    Year on year against the same period last year-5.0%
  • European unit sales55 % vs. same period last year
    Year on year against the same period last year-45.0%
  • Southeast Asian unit sales93 % vs. same period last year
    Year on year against the same period last year-7.0%
  • Share of electricity from renewable energy91.9 %
  • Sustainable supplier ratio59 %
Segment results
Tires
Net Sales
¥260,058 million
Revenue_yoy_pct-0.1
Operating profit
¥36,425 million
Operating profit_yoy_pct-22.6
Automotive Components
Net Sales
¥24,132 million
Revenue_yoy_pct4.9
Operating profit
¥1,075 million
Operating profit_yoy_pct-0.6
Other
Operating profit
¥-3 million
Financial targets
Equity ratio
71.6 %
As ofEnd of June 2026
Debt-to-equity ratio
0.15 times
As ofEnd of June 2026
Net debt-to-equity ratio
-0.06 times
As ofEnd of June 2026
Capital expenditures
¥189 100 million first six months of FY2026
Annual Dividend
Annual
¥135 per share
Interim
¥65 per share
End of period
¥70 per share
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFY2026 second quarter (interim period)
Net Sales¥284,190 million (YoY +0.3%)
Operating profit¥37,497 million (YoY -22.2%)
Ordinary income¥39,415 million (YoY -9.9%)
Net income¥29,436 million (YoY -11.7%)
Operating profit margin13.2%, down 5.8 percentage points from 17.0% in the same period of the previous year
Results for the three months of the current quarterNet Sales ¥153,238 million / Operating profit ¥16,887 million / Ordinary income ¥18,062 million / Net income ¥13,960 million
Full-year earnings forecastNet Sales ¥638,000 million / Operating profit ¥90,000 million / Ordinary income ¥87,000 million / Net income for the current fiscal year ¥62,000 million / Operating profit margin 14.1 % / Annual dividend ¥135 per share
Segment resultsTires Net Sales ¥260,058 million / Revenue_yoy_pct -0.1 / Operating profit ¥36,425 million / Operating profit_yoy_pct -22.6 / Automotive Components Net Sales ¥24,132 million / Revenue_yoy_pct 4.9 / Operating profit ¥1,075 million / Operating profit_yoy_pct -0.6 / Other Net Sales Not disclosed / Operating profit ¥-3 million
Breakdown of Factors Affecting the ChangeYear on year against the same period last year Sales factors -55 / Manufacturing Costs -14 / Selling, general and administrative expenses -15 / Raw Materials 37 / Foreign Exchange 39 / Impact of higher ocean freight and other costs -13 / Tariff impact -85 / Automotive parts business 0 / Other 0 / Total -107 / System Problems Lost sales opportunities -23 / Deterioration in manufacturing costs -19 / Total -42
Key KPIsIndicator name Tire production volume / Value 111.6 thousand tonnes / Year on year against the same period last year 94 thousand tonnes, Indicator name Total tire unit sales / Value 90 % vs. same period last year / Year on year against the same period last year -10 % vs. same period last year, Indicator name Domestic and overseas new-vehicle sales volume / Value 112 % vs. same period last year / Year on year against the same period last year 12 % vs. same period last year, Indicator name Domestic replacement sales volume / Value 72 % vs. same period last year / Year on year against the same period last year -28 % vs. same period last year, Indicator name Overseas replacement sales volume / Value 88 % vs. same period last year / Year on year against the same period last year -12 % vs. same period last year, Indicator name North American unit sales / Value 95 % vs. same period last year / Year on year against the same period last year -5 % vs. same period last year, Indicator name European unit sales / Value 55 % vs. same period last year / Year on year against the same period last year -45 % vs. same period last year, Indicator name Southeast Asian unit sales / Value 93 % vs. same period last year / Year on year against the same period last year -7 % vs. same period last year, Indicator name Share of electricity from renewable energy / Value 91.9 % / Year on year against the same period last year Not disclosed, Indicator name Sustainable supplier ratio / Value 59 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookUS dollars ¥157/USD / Euro ¥183/EUR / Operating profit foreign-exchange sensitivity ¥800 million per year for each ¥1 movement in the US dollar, and ¥100 million per year for each ¥1 movement in the euro
Financial targetsEquity ratio 71.6 % / Debt-to-equity ratio 0.15 times / Net debt-to-equity ratio -0.06 times
Annual DividendAnnual ¥135 per share / Interim ¥65 per share / End of period ¥70 per share
Capital expenditures¥189 100 million (first six months of FY2026)
New initiativesClearing the backlog following the domestic system issues and recovering production and sales from the second half onward, Starting electricity procurement through an off-site PPA at the Kuwana Plant, Reviewing the evaluation criteria for sustainable suppliers, Launching the DELVEX M635 all-weather tire for light trucks and buses
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 employeesRisk amount incorporated into the outlookMedium-term management plan 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.

Unit sales declined amid weak market conditions in the United States and elsewhere. In addition, initial issues with the domestic system caused shipment delays, production adjustments and lost sales opportunities. The impact of the system issues was explained as ¥4.2 billion based on operating profit and loss for January-June.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
FY2026 Second-Quarter Financial Results Briefing Materials | Toyo Tire Corporation (5105) timely disclosure | Komori