Tokyo Tire expects a decline in operating profit for the 2026 fiscal year

LootboxPhobia · 2026-02-14T07:54:55+00:00

Tokyo Tire Company expects operating profit for fiscal year 2026 to decline by 3% to 94 billion yen, with global tire sales increasing by 6%. The company plans to boost capacity at its U.S. facilities, aiming to increase supply through improved production efficiency and skills training. Sales for fiscal year 2025 fell short of expectations, mainly due to a sluggish domestic replacement market. The company will release its five-year mid-term plan on March 4, emphasizing business growth and shareholder returns.

LootboxPhobia

2026-02-14 07:54:55

Abstract generation in progress

Investing.com – Tokyo Tire Company has issued an operating profit guidance of 94 billion yen for fiscal year 2026, down 3% year-over-year. The company’s forecast is based on a USD/JPY exchange rate of 145 yen.

This tire manufacturer expects global tire sales to grow 6% in the fiscal year, with North American sales projected to increase 4%. January’s earnings appeared to be negatively affected by cold weather, but this weather also created favorable conditions for the company’s WLTR products used in V8 engine vehicles.

Tokyo Tire plans to enhance capacity starting in 2027 through equipment upgrades at its U.S. facilities. For 2026, the company expects to increase supply by improving production efficiency, enhancing worker skills, and reducing equipment issues.

The company’s sales in the fourth quarter of fiscal year 2025 fell short of expectations, mainly due to a sluggish domestic replacement tire market, especially for winter tires. In the North American replacement market, passenger car tires underperformed, while WLTR products, which are a key profit driver for the company, seemed to exceed expectations.

Tokyo Tire plans to announce its five-year mid-term plan on Wednesday, March 4. The focus will include the company’s business growth strategies, such as expanding European ultra-high-performance tires and developing new factories, as well as shareholder returns, including the company’s stance on stock buybacks.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.