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

FY135 Second-Quarter Financial Results Briefing Materials

In the first half of 2026, revenue and business profit both exceeded the year-earlier period, while revenue and tire segment revenue reached record highs. The full-year revenue forecast was raised by ¥10 billion, while the business profit forecast was reduced by ¥16 billion.

Worth reading
74In 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
160
¥100 million (decrease from the previously disclosed full-year business profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsSecond quarter of the fiscal year ending December 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales6,198 Hundreds of millions of yen+8.0%
Operating profit381 Hundreds of millions of yen+41.0%
Ordinary income377 Hundreds of millions of yen
Net income259 Hundreds of millions of yen+80.0%
Operating profit margin6.2 %
Selling, general and administrative expenses1,544 Hundreds of millions of yen
Results for the three months of the current quarter
Revenue
3,176 Hundreds of millions of yen+12.0%
Business profit
230 Hundreds of millions of yen+62.0%
Operating profit
231 Hundreds of millions of yen+57.0%
Interim profit
173 Hundreds of millions of yen+60.0%
Full-year earnings forecast
Revenue
13,300 Hundreds of millions of yen
Business profit
960 Hundreds of millions of yen
Operating profit
890 Hundreds of millions of yen
Profit for the period
550 Hundreds of millions of yen
ROIC
5.8 %
ROE
7.4 %
ROA
6.3 %
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.
First-half business profit met the previously disclosed forecast. Domestic SYNCHRO WEATHER exceeded the plan, while Europe fell short of its first-half plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Raw Materials+¥15.4 billion
  • Price+¥0.8 billion
  • Volume, mix and other factors-¥1.3 billion
  • Direct costs-¥3.3 billion
  • Fixed Costs+¥6.4 billion
  • Foreign exchange+¥3.9 billion
  • Expenses-¥4.5 billion
  • Sports+¥500 million
  • Industrial Products and Other+¥200 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign exchange
USD¥150→¥160
EUR¥169→¥185
Natural rubber
2026 average$1.95/kg
Crude oil
2026 average$80/bbl
Tire unit sales
Year on year2% increase
New initiatives
  • Begin sales of the new ICE Pro winter tire in Japan from August 2026
  • Launch the new DUNLOP GRANDTREK HLX in North America by year-end
  • Expand SYNCHRO WEATHER into Europe and the United States in fiscal 2027
  • Form strategic partnerships in Europe with a leading Italian wholesaler and two major Spanish wholesalers
  • Add VIADUCTSI as a new consolidated subsidiary
Key KPIsA metric the company considers important as a management benchmark.
  • Total tire unit sales (first half)99 % year on year
  • Premium tire mix (first half)47 %
  • Overseas revenue ratio74 %
  • Expected contribution from Project ARK295 Hundreds of millions of yen
  • New accounts (Europe)1,000 over downloads
  • Number of DUNLOP transactions (North America)2.1 times
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Discloses tire unit sales, premium tire mix, and raw material prices for natural rubber and crude oil.
Segment results
Tires
Revenue
5,344 Hundreds of millions of yen+9.0%
Business profit
341 Hundreds of millions of yen+54.0%
Sports
Revenue
667 Hundreds of millions of yen+3.0%
Business profit
38 Hundreds of millions of yen-7.0%
Industrial Products and Other
Revenue
187 Hundreds of millions of yen-3.0%
Business profit
19 Hundreds of millions of yen-6.0%
Financial targets
ROIC
Actual results5.8 %
Full-year forecast6.9 %
ROE
Actual results7.4 %
Full-year forecast7.5 %
ROA
Actual results6.3 %
Full-year forecast7.5 %
D/E Ratio
Actual results0.6 times
Full-year forecast0.6 times
Market Size / Share
In North America, company sales were 94% versus industry demand of 92%; in Europe, company sales were 127% versus the market average of 94% (based on year-on-year changes in unit sales and other measures).
Capital expenditures
1,000 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 CoveredSecond quarter of the fiscal year ending December 2026
Net Sales6,198 Hundreds of millions of yen (YoY +8.0%)
Operating profit381 Hundreds of millions of yen (YoY +41.0%)
Ordinary income377 Hundreds of millions of yen
Net income259 Hundreds of millions of yen (YoY +80.0%)
Operating profit margin6.2 %
Selling, general and administrative expenses1,544 Hundreds of millions of yen
Results for the three months of the current quarterRevenue 3,176 Hundreds of millions of yen (YoY +12.0%) / Business profit 230 Hundreds of millions of yen (YoY +62.0%) / Operating profit 231 Hundreds of millions of yen (YoY +57.0%) / Interim profit 173 Hundreds of millions of yen (YoY +60.0%)
Full-year earnings forecastRevenue 13,300 Hundreds of millions of yen / Business profit 960 Hundreds of millions of yen / Operating profit 890 Hundreds of millions of yen / Profit for the period 550 Hundreds of millions of yen / ROIC 5.8 % / ROE 7.4 % / ROA 6.3 % / D/E Ratio 0.6 times
Self-assessment against the planFirst-half business profit met the previously disclosed forecast. Domestic SYNCHRO WEATHER exceeded the plan, while Europe fell short of its first-half plan.
Segment resultsTires Revenue 5,344 Hundreds of millions of yen (YoY +9.0%) / Business profit 341 Hundreds of millions of yen (YoY +54.0%) / Sports Revenue 667 Hundreds of millions of yen (YoY +3.0%) / Business profit 38 Hundreds of millions of yen (YoY -7.0%) / Industrial Products and Other Revenue 187 Hundreds of millions of yen (YoY -3.0%) / Business profit 19 Hundreds of millions of yen (YoY -6.0%)
Breakdown of Factors Affecting the ChangeFactors Raw Materials / Amount +¥15.4 billion, Factors Price / Amount +¥0.8 billion, Factors Volume, mix and other factors / Amount -¥1.3 billion, Factors Direct costs / Amount -¥3.3 billion, Factors Fixed Costs / Amount +¥6.4 billion, Factors Foreign exchange / Amount +¥3.9 billion, Factors Expenses / Amount -¥4.5 billion, Factors Sports / Amount +¥500 million, Factors Industrial Products and Other / Amount +¥200 million
Key KPIsIndicator name Total tire unit sales (first half) / Value 99 % year on year, Indicator name Premium tire mix (first half) / Value 47 %, Indicator name Overseas revenue ratio / Value 74 %, Indicator name Expected contribution from Project ARK / Value 295 Hundreds of millions of yen, Indicator name New accounts (Europe) / Value 1,000 over downloads, Indicator name Number of DUNLOP transactions (North America) / Value 2.1 times
Unit price and quantity metricsDiscloses tire unit sales, premium tire mix, and raw material prices for natural rubber and crude oil.
Assumptions Underlying the Business OutlookForeign exchange USD ¥150→¥160 / EUR ¥169→¥185 / Natural rubber 2026 average $1.95/kg / Crude oil 2026 average $80/bbl / Tire unit sales Year on year 2% increase
Financial targetsROIC Actual results 5.8 % / Full-year forecast 6.9 % / ROE Actual results 7.4 % / Full-year forecast 7.5 % / ROA Actual results 6.3 % / Full-year forecast 7.5 % / D/E Ratio Actual results 0.6 times / Full-year forecast 0.6 times
Annual DividendAnnual ¥84 per share / Interim ¥42 per share / End of period ¥42 per share
Payout ratio40.1 %
Capital expenditures1,000 Hundreds of millions of yen
Market Size / ShareIn North America, company sales were 94% versus industry demand of 92%; in Europe, company sales were 127% versus the market average of 94% (based on year-on-year changes in unit sales and other measures).
New initiativesBegin sales of the new ICE Pro winter tire in Japan from August 2026, Launch the new DUNLOP GRANDTREK HLX in North America by year-end, Expand SYNCHRO WEATHER into Europe and the United States in fiscal 2027, Form strategic partnerships in Europe with a leading Italian wholesaler and two major Spanish wholesalers, Add VIADUCTSI as a new consolidated subsidiary
Items this document does not state (9)
Gross Profit MarginProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-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.

First-half results benefited from the weaker yen, lower raw material procurement premiums, internal cost-reduction measures, and higher profit in Sports and other businesses. The reduction in the full-year business profit forecast reflects lower volumes, an unfavorable product mix and other factors.

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FY135 Second-Quarter Financial Results Briefing Materials | Sumitomo Rubber Industries,Ltd. (5110) timely disclosure | Komori