Bridgestone (5108) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue was ¥1,058.1 billion, down 0.6% year-over-year; adjusted operating profit fell 7.3% to ¥111.4 billion, with a margin of 10.5%, in line with plans despite a year-on-year profit decrease.

• Net profit attributable to owners from continuing operations was ¥75.9 billion, down 12.4% year-over-year, impacted by restructuring costs.

• Comprehensive income turned negative at ¥(66.8) billion, mainly due to adverse foreign exchange impacts.

• Global cost reduction and restructuring, especially in Europe and North America, contributed ¥17 billion in Q1, with further benefits expected.

• High-value-added product sales and premium tire business continued to strengthen.

Financial highlights

• Free cash flow improved to ¥91.3 billion, up ¥60.4 billion year-over-year, driven by improved operating cash flow and selective investment.

• Cash and cash equivalents decreased to ¥591.7 billion from ¥706.7 billion at year-end.

• Total assets decreased to ¥5,396.3 billion, partly due to a stronger yen.

• Equity ratio rose to 65.8% as of March 31, 2025.

• Capital expenditure was ¥56.2 billion, down ¥6.7 billion year-over-year.

Outlook and guidance

• FY2025 revenue guidance is ¥4,330 billion, with adjusted operating profit guidance at ¥505 billion and margin expected to rise to 11.7%.

• Dividend per share forecast raised to ¥230 for FY2025.

• U.S. tariff impact estimated at ¥45 billion on adjusted operating profit by year-end 2025, with mitigation measures in place.

• Economic slowdown in the U.S. could have an additional ¥220 billion impact, though not factored into current forecasts due to uncertainty.

• Share buybacks of up to ¥300 billion and debt financing of ¥200 billion planned; 14% of buyback target achieved in Q1.