Yokohama Rubber lifts full-year outlook after blockbuster first half

Yokohama Rubber Co. (YRC) has sharply upgraded its full-year 2026 earnings guidance following a record first half, citing a 54.3% surge in business profit and 10.4% sales growth. The Japanese conglomerate now expects group sales of Yen1,320 billion (€7.2 billion), beating its May forecast by 1.5% and topping 2025’s full-year revenue by 6.8%. Business profit guidance has been lifted to Yen192.5 billion, up 2.4% versus May and 15.5% year-on-year. For the six months to 30 June 2026, group sales rose 10.4% to Yen639.4 billion, while business profit jumped 54.3% to Yen96 billion. Tire operations—accounting for 91% of group revenue—delivered Yen580.4 billion in sales, up 10.8%, with business profit climbing 57.2% to Yen89 billion. Within tires, consumer tire revenue rose 14.8% to Yen213.6 billion, with business profit surging 83.1% to Yen26 billion. YRC attributed consumer growth to stronger OE fitments in Japan offsetting weaker Japanese OEM sales in China, alongside rising replacement demand for high-inch and premium tires in Europe. The off-highway-tire (OHT) unit posted Yen54.9 billion in sales, up 7%, and business profit rose 21.2% to Yen6.3 billion despite a “difficult demand environment.” YRC credited disciplined pricing, cost controls, and a multi-brand strategy (including Mitas and Alliance) for OHT resilience, with North America driving new-product launches. The multiple businesses (MB) segment grew sales 6.9% to Yen54.9 billion and profit 21.2% to Yen6.3 billion, driven by hose and coupling sales in replacement markets and industrial products like conveyor belts and aerospace components. Other businesses reported Yen4.2 billion in sales (down 2.3%) but profit rose 25% to Yen0.5 billion. YRC highlighted higher-margin consumer tires, volume growth in OHT, improved profitability in MB, and sweeping cost reductions as key drivers of the first-half profit surge. The upgraded guidance reflects confidence in sustained momentum across segments.