Yokohama Rubber boosts profit, sets ambitious targets for 2025

Yokohama Rubber (TSE:5101) announced a robust financial performance for fiscal year 2024, driven by the company's ongoing Yokohama Transformation 2026 (YX2026) plan focused on “exploitation” and “exploration," leading to record-high revenue and strong profit gains. Building on this success, the company has set ambitious revenue targets for 2025, forecasting a 13.1% increase in tire sales and 11.4% growth in overall revenue, alongside increases in business profit. These projections will be aided by two recently confirmed actions: the acquisition of Goodyear’s OTR tire business set to contribute to profits starting this year and plans to reduce Ag market volatility. The firm plans to raise profitability with production efficiencies at new plants in Mexico and China and boost returns by increasing shareholder returns and completing a planned purchase of treasury stock. These strategic actions reflect a commitment to achieving its goals under the YX2026 plan and further enhance long-term shareholder value, while targeting both revenue expansion and efficient capital management.