Toyo Tire Corporation TSE:5105

Toyo Tire : Financial Results for 3rd Quarter of FY2025 (Script text)

Published

Source: MarketScreener

Financial Results

for 3rd Quarter of FY2025

November 12, 2025



Presenter: Kiyohito Hasumi, Director, Corporate Officer; Vice President, Business Headquarters

  1. Financial Results for 3rd Quarter of FY2025

  2. Financial Forecast for FY2025

  3. Topics



Thank you for your continued support.

Allow me to explain our "Financial Results for 3rd Quarter (January-September) of FY2025," "Financial Forecast for FY2025," and then "Topics."

  • Net sales amounted to 435.3 billion yen, a record high* for the third quarter.

  • Operating income decreased year-on-year, mainly due to higher costs, but reached 72.1 billion yen.

  • Ordinary income and profit attributable to owners of parent declined year-on-year due to the recording of foreign exchange

    losses, etc. under non-operating expenses (income).

  • On a full-year basis, operating income is forecast at 95.0 billion yen

    (up 5.0 billion yen from the previous forecast).

  • Annual dividend per share forecast remains unchanged at 130 yen

(Dividend payout ratio: 31%). (Rf. FY2024 result: 120 yen)

Highlights of Financial Results

* The highest figure since 2013, when the current accounting period was applied.

2/20



Let me first walk you through the highlights of our financial results for the first nine months of FY2025.

Net sales marked a record high for this period, driven mainly by strong sales of large-diameter tires in North America.

Operating income decreased year-on-year, mainly due to higher costs, but reached 72.1 billion yen.

Ordinary income and profit attributable to owners of parent, too, declined year-on-year, mainly due to the recording of foreign exchange losses under non-operating expenses (income).

Given the performance trend up to the end of the third quarter, we have revised the full-year financial forecast announced in August.

The forecast for operating income has been revised upward from the previous estimate to 95.0 billion yen.

Meanwhile, our annual dividend forecast remains unchanged at 130 yen per share.

55,196

ー

53,057

+8,943

26,981

(16,039)

(9.1％)

ー

15.7％

3/20

(2,138)

(3.9％)

33,330

(8,674)

19,726

+6,535

*Profit attributable to parent company shareholders

1 USD

1 EUR

149 Yen 151 Yen (2 Yen)

164 Yen 164 Yen +0 Yen

Net Sales

Operating Income

Margin

Ordinary Income

Profit Attributable to Owners of Parent*

Financial Results for 3rd Quarter of FY2025 (Jan-Sep)

2025

（Millions of yen） Jan-Sep

Results

435,289

2024

Jan-Sep Results

420,608

Change Change (%)

2025

1 lts

H Resu

Change (YoY)

2025

Jul-Sep Results

Change (YoY)

-

+14,680 +3.5％ 283,410 +9,908 151,878 +4,771

72,068

16.6％

70,712

76,237

18.1％

77,808

(4,169)

ー

(7,095)

(5.5％)

48,176

17.0%

43,730

+606

23,892

(4,776)



Net sales reached 435.3 billion yen, which marks a record high for the period. This is due to strong sales of light truck tires in North America.

Operating income declined year-on-year, due to the yen's appreciation

and higher raw material costs, but reached 72.1 billion yen.

Ordinary income declined year-on-year to 70.7 billion yen, primarily due to the recording of foreign exchange losses. Profit attributable to owners of parent also decreased year-on-year to 53.1 billion yen.

Sales Factors

Production Cost

SGA

Expenses

Raw Materials

Forex Rate

Freight Cost

Tariff Impact

Automotive Parts

Other

合計

Jan-Mar

+2.3

(2.5)

(0.9)

(2.8)

+0.6

(0.5)

ー

+0.2

+0.0

(3.6)

Apr-Jun

+9.1

+0.7

+0.0

(2.3)

(2.9)

(0.2)

(0.4)

+0.2

(0.0)

+4.2

Jul-Sep

+0.0

+0.8

(0.2)

+1.7

(1.4)

(0.7)

(4.8)

(0.1)

+0.0

(4.8)

Analysis of Operating Income for 3rd Quarter of FY2025（Jan-Sep）

（vs 2024）

（Billions of yen） Tires

(4.5)

Others

＋0.3

＋11.4

(1.1) (1.0)

(3.5)

(3.7)

(1.4)

＋0.3

(5.2)

(0.0)

76.2

72.1

2024 Sales Production SGA Raw Forex Freight Jan-Sep Factors Cost Expenses Materials Rate Cost

Tariff Automotive

Impact Parts

Other

2025

Jan-Sep

4/20



This graph analyzes the factors contributing to year-on-year changes in operating income for the third quarter of FY2025.

For the Tire Business, sales factors pushed up operating income by

11.4 billion yen. The sum breaks down into negative 2.2 billion yen for volume effects, positive 20.2 billion yen for product price/mix effects, and negative 6.5 billion yen for unrealized profit in inventory.

Production cost pushed down operating income by 1.1 billion yen, while raw material costs lowered operating income by 3.5 billion yen, due to rising prices of natural rubber.

Forex rates reduced operating income by 3.7 billion yen, while ocean freight costs contributed to a decline of 1.4 billion yen.

The impact of higher U.S. tariffs amounted to negative 5.2 billion yen.

As a result, operating income decreased by 4.2 billion yen year-on-year.

Other

ー

0

(0)

ー

ー

(0)

ー

ー

Adjustments

ー

(0)

+0

ー

ー

+0

ー

ー

Total

435,289

420,608

+14,680

+3.5%

283,410

+9,908

151,878

+4,771

Operating Income

2025

Jan-Sep Results

2024

Jan-Sep Results

Change

Change (%)

2025

1H Results

Change (YoY)

2025

Jul-Sep Results

Change (YoY)

Tires

70,381

74,881

(4,500)

(6.0%)

47,084

+185

23,296

(4,686)

Margin

17.6%

19.3%

ー

ー

18.1%

ー

16.7％

ー

Margin

4.8%

4.0%

ー

ー

4.7%

ー

4.9%

ー

Other

16

12

+3

+31.1%

9

(0)

6

+5

Adjustments

ー

0

0

ー

ー

(0)

ー

(0)

Total

72,068

76,237

(4,169)

(5.5%)

48,176

+606

23,892

(4,776)

Business Segments for 3rd Quarter of FY2025（Jan-Sep)

(Millions of yen)

Net Sales

2025

Jan-Sep Results

400,252

35,036

2024

Jan-Sep Results

387,146

33,462

Change

Change (%)

Tires

Automotive Parts

+13,105

+1,574

+3.4%

+4.7%

2025 Change

1H Results (YoY)

260,409 +9,117

23,001 +791

2025

Jul-Sep Results

139,843

12,035

Change (YoY)

+3,988

+783

*Net sales include intersegment internal net sales or transfers

Automotive Parts

1,670

1,343

+327 +24.3%

1,081

+421

589

(94)

*Segment profit adjustment amounts include intersegment eliminations

5/20



Shown on this slide are net sales and operating income by business segment.

For the Tire Business, net sales increased primarily due to unit sales growth of light truck tires in North America, but operating income declined as raw materials and other costs increased.

For the Automotive Parts Business, both net sales and operating income registered a year-on-year increase.

85,606

79,319

+6,286

+7.9％

55,462

+3,716

30,144

+2,570

298,160

285,667

+12,492

+4.4％

191,926

+6,151

106,234

+6,341

51,521

55,621

(4,099)

(7.4％)

36,021

+41

15,499

(4,140)

-

-

-

-

-

-

-

-

435,289

420,608

+14,680

+3.5％

283,410

+9,908

151,878

+4,771

44,349

50,041

(5,691)

(11.4％)

29,932

(5,674)

14,416

(17)

14,165

16,569

(2,403)

(14.5％)

10,337

+1,816

3,827

(4,220)

12,157

5,418

+6,739

+124.4％

8,965

+5,507

3,192

+1,231

1,395

4,208

(2,813)

-

(1,059)

(1,042)

2,455

(1,770)

72,068

76,237

(4,169)

(5.5％)

48,176

+606

23,892

(4,776)

Geographic Area Segments for 3rd Quarter of FY2025（Jan-Sep)

(Millions of yen)

Net Sales

Japan N.America Other

Eliminations or Adjustments Total

2025

Jan-Sep Results

2024

Jan-Sep Results

Change

Change 2025 Change

(%) 1H Results (YoY)

2025

Jul-Sep Results

Change (YoY)

*Net sales do not include intersegment internal net sales or transfers

Operating Income

Japan N.America Other

Eliminations or

Adjustments

Total

2025

Jan-Sep Results

2024

Jan-Sep Results

Change

Change 2025 Change

(%) 1H Results (YoY)

2025

Jul-Sep Results

Change

(YoY)

6/20



Here we have our net sales and operating income by geographic area segment.

The North America Segment recorded year-on-year sales growth, mainly driven by strong sales of tires for light trucks.

The North America Segment operating income declined. However, if we

exclude royalty payments to the Japan Segment to reflect the

segment's real profitability, it increased year-on-year.

The Japan Segment posted an increase in net sales but a decrease in operating income due to higher costs.

  1. Financial Results for 3rd Quarter of FY2025

  2. Financial Forecast for FY2025

  3. Topics



Let me move on to talk about our consolidated financial forecast for FY2025.

USD

0.8 Billion Yen/Year

EUR

0.1 Billion Yen/Year

Financial Forecast for FY2025（Jan-Dec）

2025

（Millions of yen） Forecast

590,000

2024

Results

565,358

Change

Change (%)

2025

Previous Change Forecast

585,000

Net Sales

Operating Income

Margin Ordinary Income

Profit Attributable to Owners of Parent*

+24,641

+4.4%

+5,000

2025

Oct-Dec Forecast

154,710

Change (YoY)

+9,961

95,000 93,981 ＋1,018 ＋1.1% 90,000 +5,000

16.1% 16.6% ー ー 15.4% ー

90,000 102,117 (12,117) (11.9％) 78,000 +12,000

22,931 +5,188

14.8% －

19,287 (5,021)

65,000

74,810 (9,810) (13.1％) 56,000 +9,000

11,942 (7,671)

*Profit attributable to parent company shareholders

Annual Dividends per Share

±0

Forex Rate Sensitivity 2025

1 USD

1 EUR

151 Yen

164 Yen

(2 Yen)

＋3 Yen

Mid-Term '21 Plan Key

Performance Indicators

Over 14%

30% or higher

Impact of 1 yen fluctuation on operating income

8/20

167 Yen

149 Yen

130 Yen

ー

120 Yen ＋10 Yen

130 Yen

Consolidated OP margin

Dividend policy

（Dividend payout ratio）



This is our financial forecast for FY2025.

Given the performance trend and the level of exchange rates up to the end of the third quarter, we have revised the full-year financial forecast announced in August.

We now forecast our full-year operating income to be 95.0 billion yen, revised upward from our previous forecast in August. We have also made upward revisions to our forecasts for ordinary income and profit attributable to owners of parent.

With prevailing rates taken into account, we now assume forex rates to be 149 yen per USD and 167 yen per Euro.

Sales Factors

Production Cost

SGA

Expenses

Raw Materials

Forex Rate

Freight Cost

Tariff Impact

Automotive Parts

Other

Total

Jan-Jun Results

+11.4

(1.8)

(0.8)

(5.1)

(2.3)

(0.7)

(0.4)

+0.4

(0.0)

+0.6

Jul-Sep Results

+0.0

+0.8

(0.2)

+1.7

(1.4)

(0.7)

(4.8)

(0.1)

+0.0

(4.8)

Oct-Dec Forecast

+9.2

+1.4

+1.0

+2.2

+0.7

(2.6)

(6.0)

(0.7)

(0.0)

+5.2

Analysis of Operating Income for FY2025（Jan-Dec）（vs 2024）

（Billions of yen）

Tires

＋1.4

Others (0.4)

＋20.6 ＋0.3

(0.0) (1.3)

(3.0)

(4.0)

(11.2) (0.4) (0.0)

2024 Sales Production SGA Raw Forex Freight Tariff Automotive Other 2025

Results Factors Cost Expenses Materials Rate Cost Impact Parts Forecast

9/20

95.0

94.0



This is a comparison between the full-year operating year forecast for FY2025 and the results in the previous year, complete with an analysis of increases and decreases by factor.

We expect sales factors to increase the operating income of the Tire Business over the previous year by 20.6 billion yen.

The sum consists of negative 0.2 billion yen for volume effects, positive

26.8 billion yen for product price/mix effects, and negative 5.9 billion yen for unrealized profit in inventory.

Raw material costs are expected to push down operating income by

1.3 billion yen, as we expect a rise in prices of natural rubber and other materials.

Forex rates are expected to reduce operating income by 3.0 billion yen, as the yen has appreciated compared to the previous year. The tariff impact is expected to lower operating income by 11.2 billion yen.

All in all, we expect full-year operating income to increase by 1.0 billion yen over the previous year.