For the full year, Yokohama Rubber forecasts sales revenue of ¥1.3 trillion (approx. $8.19 billion), up 5.3%.
Yokohama Rubber reported higher sales and profit for the first quarter (Q1) of fiscal 2026. Gains in its tire business, stronger high-value tire sales and growth in off-highway tires drove the increase.
The company said the results reflect continued execution of its Yokohama Transformation 2026 plan. The plan focuses on “exploitation” of existing business strengths and “exploration” of new value. Yokohama Rubber said the strategy “again produced strong results in all of the Group’s businesses.”
Yokohama Q1 Results
For the three months ended March 31, Yokohama Rubber reported consolidated sales revenue of ¥303.8 billion (approx. $1.91 billion). That marked a 10.4% increase from ¥275.1 billion (approx. $1.73 billion) a year earlier.
Business profit increased 84.6% year over year to ¥44.4 billion (approx. $280.1 million).
Operating profit rose 34.5% to ¥26.0 billion (approx. $163.9 million). Profit attributable to owners of the parent climbed 72.6% to ¥14.7 billion (approx. $92.7 million).
Tire Segment Leads Growth
Yokohama Rubber’s tire segment remained its largest business. Tire segment sales revenue totaled ¥278.1 billion (approx. $1.75 billion). The figure increased 11.1% year over year and represented 91.5% of consolidated sales revenue.
Tire segment business profit increased 89.1% to ¥42.0 billion (approx. $264.8 million).
Within consumer tires, original equipment sales increased year over year. Yokohama Rubber said strong sales in Japan offset continued weakness in Japanese automakers’ sales in China.
Replacement tire sales also increased. Yokohama Rubber said unfavorable weather and other factors reduced North American replacement sales.
Continued sales activity in Japan supported overall replacement sales. Strong sales of high-inch and other high-value-added tires in Europe also contributed. The company also expanded business in China, India and other regional markets.
Off-Highway Tires Support Results
Yokohama Rubber increased sales of off-highway tires despite what it described as a harsh demand environment. Sales of tires for agricultural machinery rose year over year. Stronger customer relationships helped the company gain market share as demand gradually rebounded.
In the replacement market, Yokohama Rubber credited its multi-brand strategy for higher sales. The strategy centers on Mitas, Alliance and Galaxy brand tires. Rebounding North American demand also supported results.
The company attributed the increase in consolidated business profit to several factors. These included higher sales of high-value-added consumer tires and high-inch tires. Increased OHT sales volume also contributed. Yokohama Rubber also cited profitability improvement efforts and internal cost-reduction initiatives.
MB Segment Revenue and Profit Rise
The MB (Multiple Businesses) segment generated sales revenue of ¥24.0 billion (approx. $151.2 million). That marked a 4.2% increase year over year and accounted for 7.9% of consolidated sales revenue.
MB segment business profit increased 21.2% to ¥2.2 billion (approx. $14.1 million).
The hose and couplings business recorded lower sales year over year. Reduced new-vehicle production in North America offset strong replacement-market demand for hydraulic hoses in Japan.
The industrial products business increased sales. The company maintained a high share of the conveyor belt market. It also won new marine products contracts and increased sales of defense-related equipment.
Salem Plant Closure Affects Profit
Yokohama Rubber increased operating profit year over year despite recording a ¥13.0 billion (approx. $81.9 million) one-time expense. The charge related to the closure of the company’s U.S. tire plant in Salem, Virginia.
Operating profit rose to ¥26.0 billion (approx. $163.9 million). In the first quarter of 2025, operating profit totaled ¥19.3 billion (approx. $121.9 million).
Profit before tax increased 87.1% to ¥26.0 billion (approx. $163.6 million). A year earlier, profit before tax totaled ¥13.9 billion (approx. $87.4 million).
Basic earnings per share rose to ¥93.62 (approx. $0.59). In the first quarter of 2025, earnings per share totaled ¥53.74 (approx. $0.34).
Assets and Equity Increase
As of March 31, Yokohama Rubber reported total assets of ¥2.05 trillion (approx. $12.90 billion). The figure increased ¥47.9 billion (approx. $301.6 million) from Dec. 31, 2025.
Higher property, plant and equipment, trade receivables and inventories drove the increase.
Total liabilities rose ¥35.5 billion (approx. $223.4 million) to ¥993.6 billion (approx. $6.26 billion). Higher interest-bearing debt primarily caused the increase.
Total equity increased ¥12.4 billion (approx. $78.2 million) to ¥1.05 trillion (approx. $6.63 billion). Growth in other equity components related mainly to foreign exchange fluctuations drove the increase.
Yokohama Rubber Revises 2026 Forecast
Yokohama Rubber revised its consolidated earnings forecast for the first half and full fiscal year ending Dec. 31. For the first half, the company forecasts sales revenue of ¥610.0 billion (approx. $3.84 billion). That would represent a 5.3% year-over-year increase.
Yokohama Rubber also forecasts business profit of ¥75.0 billion (approx. $472.7 million), up 20.7%.
The company forecasts operating profit of ¥86.0 billion (approx. $542.0 million), up 56.8%. It also forecasts profit attributable to owners of the parent of ¥45.0 billion (approx. $283.6 million), up 26.6%.
For the full year, Yokohama Rubber forecasts sales revenue of ¥1.3 trillion (approx. $8.19 billion), up 5.3%.
The company also forecasts business profit of ¥188.0 billion (approx. $1.18 billion), up 12.9%. Operating profit is expected to reach ¥191.5 billion (approx. $1.21 billion), up 25.2%.
Yokohama Rubber forecasts profit attributable to owners of the parent of ¥109.0 billion (approx. $686.9 million), up 3.4%.
The company maintained its dividend forecast. Yokohama Rubber expects an annual dividend of ¥172 per share (approx. $1.08). The total includes ¥62 per share (approx. $0.39) at the end of the second quarter and ¥110 per share (approx. $0.69) at year-end.
