Yokohama Rubber hits record highs, accelerates transformation plans

The Yokohama Rubber Co., Ltd. reported record sales revenue of 877,189 million yen for the first nine months of fiscal year 2025, a 12.0% year-on-year increase. Business profit rose 20.8% to 100,725 million yen. This marks record high sales revenue, business profit, and business profit margin for both the third quarter and the nine-month period. A 5.0 billion yen negative impact from tariffs in Q3 was nearly offset by sales price revisions. The company is on track to meet its FY2025 full-year forecast.

The company's "YX2026" medium-term management plan is progressing, focusing on "Low cost, speedy development of quality products" and "1-year plant" challenges. Key initiatives include expanding Shinshiro Plant's facility for premium car tire development by 2027 and implementing new tire plants in Hangzhou, China, and Mexico. These efforts aim to drastically reduce product costs and accelerate development through AI simulation technologies, strengthening OE tire development for next-generation premium cars.

Total assets increased by 158,306 million yen to 1,893,851 million yen as of September 30, 2025, driven by property, plant and equipment, intangible assets, and inventories. The D/E ratio stood at 0.63, and the net D/E ratio at 0.53. The company aims to achieve its FY2026 business profit target in FY225, one year ahead of schedule, with an estimated 14.0 billion yen full-year impact from US tariffs to be absorbed through internal improvements and increased sales.