Bridgestone (5108) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 was marked by emergency and crisis management, with business rebuilding, cost reductions, and restructuring nearly completed, resulting in a 15% increase in profit attributable to owners of parent to JPY 327.3 billion, aided by a significant tax reversal.

• Revenue was JPY 4,429.5 billion, nearly flat year-over-year, while adjusted operating profit rose 2% to JPY 493.7 billion.

• U.S. tariffs and currency effects posed challenges, but global supply chain optimization and cost controls mitigated their impact.

• Dividend per share increased to JPY 230, with a 2-for-1 stock split executed on January 1, 2026, and further increases planned.

• Fiscal 2026 is positioned as a transition to growth, emphasizing product competitiveness, manufacturing excellence, and brand power.

Financial highlights

• Adjusted operating profit margin improved to 11.1% year-on-year, while operating profit margin declined to 8.6% due to restructuring expenses.

• ROIC improved to 8.3% and ROE to 8.9% year-on-year.

• Free cash flow was JPY 435.5 billion, a JPY 141.7 billion increase year-on-year.

• Dividend for FY2025 was JPY 230 per share, with FY2026 guidance at JPY 125 per share post-stock split.

• Basic earnings per share increased to JPY 246.00, reflecting the stock split.

Outlook and guidance

• FY2026 guidance: revenue JPY 4,500.0 billion (+2% YoY), adjusted operating profit JPY 515.0 billion (+4% YoY), profit attributable to owners JPY 340.0 billion (+4% YoY), and adjusted OPM expected to improve to 11.4%.

• Dividend per share for FY2026 is planned at JPY 125 post-split (+JPY 10 YoY).

• U.S. tariffs projected to reduce FY2026 profit by JPY 55 billion, with ongoing cost reduction and supply chain optimization to mitigate impact.

• CapEx and R&D spending to exceed prior two years, focusing on product and manufacturing competitiveness.

• Continued focus on premium product mix, cost reduction, and business quality.