Komori
Presentation materials for financial results5110Sumitomo Rubber Industries,Ltd.Automobiles and transportation equipment

Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 2026

From January to March 2026, revenue increased 5% year on year to ¥302.2 billion, while business profit rose 19% to ¥16.8 billion, resulting in higher revenue and profit. Revenue reached a record high, while the expansion of the Tire business, raw material prices, foreign exchange movements and the effects of Project ARK helped drive profit growth.

Worth reading
78Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
27
¥100 million (year-on-year increase in business profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending December 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales3,022 Hundreds of millions of yen+5.0%
Operating profit151 Hundreds of millions of yen+22.0%
Net income86 Hundreds of millions of yen+241.0%
Operating profit margin5 %
Selling, general and administrative expenses768 Hundreds of millions of yen
Results for the three months of the current quarter
Revenue
3,022 Hundreds of millions of yen
Business profit
168 Hundreds of millions of yen
Operating profit
151 Hundreds of millions of yen
Quarterly profit
86 Hundreds of millions of yen
Full-year earnings forecast
Revenue
13,200 Hundreds of millions of yen
Business profit
1,120 Hundreds of millions of yen
Operating profit
1,000 Hundreds of millions of yen
Profit for the period
550 Hundreds of millions of yen
ROIC
6.9 %
ROE
7.5 %
ROA
7.5 %
D/E Ratio
0.6 times
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Mixed (domestic SYNCHRO WEATHER fell short of plan in some areas, but profit exceeded plan)
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Raw Materials100 Hundreds of millions of yen
  • Price33 Hundreds of millions of yen
  • Volume, mix and other factors-77 Hundreds of millions of yen
  • Direct costs-17 Hundreds of millions of yen
  • Fixed Costs-3 Hundreds of millions of yen
  • Foreign exchange25 Hundreds of millions of yen
  • Expenses-23 Hundreds of millions of yen
  • Sports-8 Hundreds of millions of yen
  • Industrial Products and Other-3 Hundreds of millions of yen
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • 157 JPY/USD
    AssumptionsUSD exchange rate
  • 184 JPY/EUR
    AssumptionsEUR exchange rate
  • $1.83 /kg
    AssumptionsAverage natural rubber (TSR20) price
  • $79 /bbl
    AssumptionsAverage crude oil (DUBAI) price
New initiatives
  • Expand the DUNLOP brand sales network in Europe, the Americas and Australia
  • Expand sales of BLUE RESPONSE TG and BLUE RESPONSE A/S
  • Expand SYNCHRO WEATHER sales
  • Reduce costs through Project ARK
  • Renovate the Thailand plant and reduce costs
Key KPIsA metric the company considers important as a management benchmark.
  • Domestic SYNCHRO WEATHER revenueApproximately 4 times year on year
    Year on year against the same period last yearApproximately 4 times
  • Project ARK effect in the first quarter of 202620 Hundreds of millions of yen
  • Target for cumulative Project ARK effect262 Hundreds of millions of yen
  • First-quarter penetration rate among target customers in EuropeOver 40%
  • Number of dealers purchasing BLUE RESPONSE A/SMore than 1,000 stores
  • Overseas user share73 %
    Year on year against the same period last year+1.0%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Total tire sales volume2,322 10,000 units
    Year on year against the same period last year+97.0%
  • Domestic original-equipment sales volume107 % year on year
    Year on year against the same period last year107%
  • Domestic replacement sales volume96 % year on year
    Year on year against the same period last year96%
  • Overseas original-equipment sales volume97 % year on year
    Year on year against the same period last year97%
  • Overseas replacement sales volume96 % year on year
    Year on year against the same period last year96%
  • Market pricing positionImproved
Segment results
  • Tires
    Revenue2,599 Hundreds of millions of yen
    Revenue_yoy_pct6
    Business profit148 Hundreds of millions of yen
    Business profit_yoy_pct35
  • Sports
    Revenue322 Hundreds of millions of yen
    Revenue_yoy_pct-1
    Business profit9 Hundreds of millions of yen
    Business profit_yoy_pct-47
  • Industrial Products and Other
    Revenue101 Hundreds of millions of yen
    Revenue_yoy_pct-7
    Business profit11 Hundreds of millions of yen
    Business profit_yoy_pct-24
Financial targets
ROIC
6.9 %
ROE
7.5 %
ROA
7.5 %
D/E Ratio
0.6 times
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • -164 Hundreds of millions of yen
    DetailsTire tariffs
  • -5 Hundreds of millions of yen
    DetailsOcean freight
  • -79 Hundreds of millions of yen
    DetailsMeasures to expand DUNLOP sales in Europe, the Americas and Australia
  • -180 Hundreds of millions of yen
    DetailsExpenses
Market Size / Share
  • North American tire industry demand92 % year on year
  • North American FALKEN sales95 % year on year
  • North American WILDPEAK sales92 % year on year
Capital expenditures
610 Hundreds of millions of yen
Annual Dividend
Annual
¥84 per share
Interim
¥42 per share
End of period
¥42 per share
Payout ratio
40.1 %
DOE
3.1 %
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales3,022 Hundreds of millions of yen (YoY +5.0%)
Operating profit151 Hundreds of millions of yen (YoY +22.0%)
Net income86 Hundreds of millions of yen (YoY +241.0%)
Operating profit margin5 %
Selling, general and administrative expenses768 Hundreds of millions of yen
Results for the three months of the current quarterRevenue 3,022 Hundreds of millions of yen / Business profit 168 Hundreds of millions of yen / Operating profit 151 Hundreds of millions of yen / Quarterly profit 86 Hundreds of millions of yen
Full-year earnings forecastRevenue 13,200 Hundreds of millions of yen / Business profit 1,120 Hundreds of millions of yen / Operating profit 1,000 Hundreds of millions of yen / Profit for the period 550 Hundreds of millions of yen / ROIC 6.9 % / ROE 7.5 % / ROA 7.5 % / D/E Ratio 0.6 times
Self-assessment against the planMixed (domestic SYNCHRO WEATHER fell short of plan in some areas, but profit exceeded plan)
Segment resultsSegment Tires / Revenue 2,599 Hundreds of millions of yen / Revenue_yoy_pct 6 / Business profit 148 Hundreds of millions of yen / Business profit_yoy_pct 35, Segment Sports / Revenue 322 Hundreds of millions of yen / Revenue_yoy_pct -1 / Business profit 9 Hundreds of millions of yen / Business profit_yoy_pct -47, Segment Industrial Products and Other / Revenue 101 Hundreds of millions of yen / Revenue_yoy_pct -7 / Business profit 11 Hundreds of millions of yen / Business profit_yoy_pct -24
Breakdown of Factors Affecting the ChangeFactors Raw Materials / Amount 100 Hundreds of millions of yen, Factors Price / Amount 33 Hundreds of millions of yen, Factors Volume, mix and other factors / Amount -77 Hundreds of millions of yen, Factors Direct costs / Amount -17 Hundreds of millions of yen, Factors Fixed Costs / Amount -3 Hundreds of millions of yen, Factors Foreign exchange / Amount 25 Hundreds of millions of yen, Factors Expenses / Amount -23 Hundreds of millions of yen, Factors Sports / Amount -8 Hundreds of millions of yen, Factors Industrial Products and Other / Amount -3 Hundreds of millions of yen
Key KPIsIndicator name Domestic SYNCHRO WEATHER revenue / Value Approximately 4 times year on year / Year on year against the same period last year Approximately 4 times, Indicator name Project ARK effect in the first quarter of 2026 / Value 20 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Target for cumulative Project ARK effect / Value 262 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name First-quarter penetration rate among target customers in Europe / Value Over 40% / Year on year against the same period last year Not disclosed, Indicator name Number of dealers purchasing BLUE RESPONSE A/S / Value More than 1,000 stores / Year on year against the same period last year Not disclosed, Indicator name Overseas user share / Value 73 % / Year on year against the same period last year 1 %
Unit price and quantity metricsIndicator name Total tire sales volume / Value 2,322 10,000 units / Year on year against the same period last year 97 10,000 units, Indicator name Domestic original-equipment sales volume / Value 107 % year on year / Year on year against the same period last year 107%, Indicator name Domestic replacement sales volume / Value 96 % year on year / Year on year against the same period last year 96%, Indicator name Overseas original-equipment sales volume / Value 97 % year on year / Year on year against the same period last year 97%, Indicator name Overseas replacement sales volume / Value 96 % year on year / Year on year against the same period last year 96%, Indicator name Market pricing position / Value Improved / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookAssumptions USD exchange rate / Value 157 JPY/USD, Assumptions EUR exchange rate / Value 184 JPY/EUR, Assumptions Average natural rubber (TSR20) price / Value $1.83 /kg, Assumptions Average crude oil (DUBAI) price / Value $79 /bbl
Risk amount incorporated into the outlookDetails Tire tariffs / Amount -164 Hundreds of millions of yen, Details Ocean freight / Amount -5 Hundreds of millions of yen, Details Measures to expand DUNLOP sales in Europe, the Americas and Australia / Amount -79 Hundreds of millions of yen, Details Expenses / Amount -180 Hundreds of millions of yen
Financial targetsROIC 6.9 % / ROE 7.5 % / ROA 7.5 % / D/E Ratio 0.6 times
Annual DividendAnnual ¥84 per share / Interim ¥42 per share / End of period ¥42 per share
Payout ratio40.1 %
Capital expenditures610 Hundreds of millions of yen
Market Size / ShareIndicator name North American tire industry demand / Value 92 % year on year, Indicator name North American FALKEN sales / Value 95 % year on year, Indicator name North American WILDPEAK sales / Value 92 % year on year
New initiativesExpand the DUNLOP brand sales network in Europe, the Americas and Australia, Expand sales of BLUE RESPONSE TG and BLUE RESPONSE A/S, Expand SYNCHRO WEATHER sales, Reduce costs through Project ARK, Renovate the Thailand plant and reduce costs
Items this document does not state (9)
Ordinary incomeGross Profit MarginProgress against full-year forecastNumber of stores and locationsNumber of employeesMedium-term management plan targetsAcquisition of treasury sharesOrders received and order backlogKey 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.

Improved raw material prices, higher selling prices, foreign exchange movements, the effects of the closure of the North American plant and Project ARK were among the factors driving profit growth. On the other hand, measures to expand DUNLOP sales in Europe, the Americas and Australia, development-related costs, advertising expenses and DX costs weighed on profit.

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Financial Results Briefing for the First Quarter of the Fiscal Year Ending December 2026 | Sumitomo Rubber Industries,Ltd. (5110) timely disclosure | Komori