Bridgestone (5108) Q1 2026 earnings summary

Executive summary

• Achieved record-high consolidated revenue and adjusted operating profit in Q1 FY2026, driven by yen depreciation, strong new product launches, and business rebuilding efforts.

• Market share increased in North America despite demand slowdown; Europe saw improved profitability and margin gains.

• Comprehensive income improved significantly to ¥142,419 million from a loss of ¥66,843 million in Q1 FY2025, aided by positive foreign exchange impacts.

• Capital policy on share buybacks and fund-raising is progressing as planned, with 51% of buyback completed by end of April.

• A 2-for-1 stock split was executed on January 1, 2026, affecting EPS and dividend calculations.

Financial highlights

• Q1 FY2026 net revenue: ¥1,113.4 billion; adjusted operating profit: ¥122.2 billion; adjusted operating margin: 11%.

• Profit attributable to owners: ¥92.1 billion, up 21% year-over-year; basic EPS for Q1 FY2026 was ¥72.37.

• Free cash flow increased to ¥108.7 billion, up ¥17.4 billion year-over-year; equity ratio rose to 65.2%.

• Gross profit increased to ¥432,778 million from ¥408,038 million year-over-year.

• Net cash provided by operating activities rose to ¥190,795 million from ¥169,876 million year-over-year.

Outlook and guidance

• No change to full-year FY2026 guidance; company aims for ¥515 billion operating profit and ¥340 billion profit attributable to owners, with basic EPS forecast at ¥270.87.

• Dividend per share for FY2026 is projected at ¥125.00 post-split.

• Cost inflation from Middle East impacts estimated at ¥70 billion, mainly from raw materials, logistics, and ocean freight.

• U.S. tariffs expected to have a ¥55 billion annual gross impact, unchanged from prior assumptions.

• Cost increases expected from Q2 onward, with mitigation measures including cost reductions and price increases.