Toyo Tires posted sales gains in fiscal 2025 and strengthened its balance sheet, despite a drop in net income.
Toyo Tires 2025 earnings showed higher net sales and operating profit, alongside improved balance sheet strength, even as profit attributable to owners declined year over year.
For the fiscal year ended Dec. 31, 2025, Toyo Tire Corporation reported net sales of 594,923 million yen (approximately $4.0 billion at ¥150 per $1), an increase of 29,564 million yen, or 5.2%, compared to fiscal year 2024. Operating income rose to 97,350 million yen (approximately $649 million), up 3.6% year over year.
Ordinary income declined slightly to 101,328 million yen (approximately $675 million), down 0.8%. Profit attributable to owners of parent totaled 63,614 million yen (approximately $424 million), a decrease of 15.0% compared to the prior year.
Toyo Tires 2025 Financial Results
According to Toyo’s consolidated statements of income, gross profit increased to 234,814 million yen (approximately $1.57 billion), compared to 230,763 million yen in fiscal year 2024. Operating profit improved from 93,981 million yen (approximately $627 million) in 2024 to 97,350 million yen (approximately $649 million) in 2025.
However, profit before income taxes declined to 89,240 million yen (approximately $595 million), compared to 101,583 million yen in the previous year. Impairment losses rose to 14,078 million yen (approximately $94 million), up from 7,675 million yen in 2024, contributing to the reduction in final profit.
Comprehensive income for fiscal year 2025 totaled 70,009 million yen (approximately $467 million), compared to 97,491 million yen in fiscal year 2024.
Tire Drives Growth
The Tire Unit accounted for the majority of performance improvement in fiscal 2025.
The segment reported net sales of 547,697 million yen (approximately $3.65 billion), an increase of 5.4% year over year. Operating income rose to 95,509 million yen (approximately $637 million), up 3.7% from fiscal year 2024.
The Automotive Parts Business Unit posted net sales of 47,225 million yen (approximately $315 million), up 3.7% year over year. Operating income in that segment declined slightly to 1,821 million yen (approximately $12 million), down 3.1%.
Balance Sheet Strengthens in 2025
Toyo’s consolidated balance sheet shows improved financial positioning at year-end 2025.
Total assets increased to 753,248 million yen (approximately $5.02 billion), up from 722,666 million yen at the end of 2024 (approximately $4.82 billion). Net assets rose to 522,659 million yen (approximately $3.48 billion), an increase of 50,106 million yen (approximately $334 million) year over year.
Total liabilities declined to 230,588 million yen (approximately $1.54 billion), down from 250,113 million yen (approximately $1.67 billion). Interest-bearing liabilities decreased by 16,100 million yen to 92,349 million yen (approximately $616 million).
As a result, the company’s capital ratio improved to 69.4%, an increase of 4 percentage points compared to the prior year.
What Toyo Tires Fiscal Year 2025 Earnings Indicate for Tire Dealers
Toyo Tires fiscal year 2025 earnings reflect revenue growth across both major business units, higher operating profit driven by the Tire Unit Business, increased impairment losses impacting final net profit, and reduced liabilities alongside a stronger capital ratio.
The results show continued top-line expansion and operating income growth, paired with a more fortified balance sheet entering fiscal year 2026.
