Bridgestone (5108) Q2 2025 earnings summary

Executive summary

• Revenue for 1H 2025 was ¥2,116.4 billion, down 2.8–3% year-over-year; adjusted operating profit rose 2–2.4% to ¥234.6 billion with an 11.1% margin, while net income attributable to owners fell 42% to ¥115.5 billion due to absence of prior year's one-time gain and higher restructuring costs.

• Business rebuilding and cost reduction initiatives, especially in Europe and the U.S., contributed to profit improvement, with restructuring expenses of ¥70,271 million recorded in H1.

• The company is advancing both defensive (restructuring, cost cuts) and offensive (product launches, brand expansion) strategies.

• Comprehensive income turned negative at ¥(66,435) million, mainly due to exchange differences on translation of foreign operations.

• Anti-vibration rubber business classified as discontinued operations; minor profit from discontinued operations in current period.

Financial highlights

• Adjusted operating margin improved by 0.6 percentage points year-over-year to 11.1%.

• Free cash flow for 1H 2025 was ¥158.2 billion, up ¥49.4 billion year-over-year, with improved operating cash flow and increased selective investments.

• Dividend per share forecast for FY2025 is ¥230, up ¥20 from the previous year; share buyback program reached 47% completion by July.

• Equity ratio at 63.6% as of June 30, 2025, down from 65.2% at year-end 2024.

• Gross margin for 1H 2025 was 38.6%, slightly down from 39.4% year-over-year.

Outlook and guidance

• FY2025 revenue guidance is ¥4,330.0 billion, down 2% or up 2.3% year-over-year depending on source; adjusted operating profit forecast at ¥505.0 billion, up 4% year-over-year, with margin expected to rise to 11.7%.

• Profit attributable to owners of parent projected at ¥253.0 billion, down 11% year-over-year; basic EPS forecast at ¥385.24.

• U.S. tariff impact on adjusted operating profit revised down from ¥45 billion to ¥25 billion; main impact expected in H2.

• Dividend and capital policy to be maintained even if U.S. economic slowdown risk materializes.

• Guidance unchanged from February.