Record first-half results, with full-year forecast raised on stronger-than-expected profit

In the first half from January to June 2026, revenue was ¥639,397 million, business profit was ¥95,846 million, operating profit was ¥109,699 million and profit attributable to owners of the parent was ¥72,578 million. Year on year, these figures increased by 10.4%, 54.3%, 100.0% and 104.2%, respectively, with all 4 key indicators reaching record highs. In particular, the business profit margin rose to 15.0%, confirming profit improvement outpacing revenue growth.

The full-year forecast revised in August is revenue of ¥1,320,000 million, business profit of ¥192,500 million, operating profit of ¥199,500 million and profit attributable to owners of the parent of ¥117,000 million. First-half progress rates are 48.4% for revenue, 49.8% for business profit, 55.0% for operating profit and 62.0% for profit attributable to the parent. On a simple calculation, the second half must contribute revenue of ¥680,603 million, business profit of ¥96,654 million, operating profit of ¥89,801 million and profit for the year of ¥44,422 million, making it necessary to reassess the profit level required during the remaining period to achieve the full-year targets in the third quarter.

Operating profit includes a gain of ¥35,302 million on the sale of fixed assets at the former Israel plant site, while one-off costs of ¥14,952 million related to the closure of the Salem plant and impairment losses of ¥3,914 million were also recorded. Accordingly, rather than treating the increase in operating profit to ¥109,699 million as an improvement in ordinary earning power, it is important to assess progress in business profit of ¥95,846 million, together with the profit margins of the Tire and MB businesses.

In the third-quarter results, the first point to confirm will be whether the full-year forecasts of revenue of ¥1,320,000 million, business profit of ¥192,500 million and operating profit of ¥199,500 million are maintained or revised again. In addition, it will be important to confirm whether the company provides additional quantitative explanations by factor, or at least for price, volume, mix and costs, showing how much the first-half increases in sales of high-value-added products, profitable OHT volume growth, price pass-through and cost improvements contributed to ordinary business profit in the second half.