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Balanced/neutral. The company reported modest top-line growth and stronger profit growth in FY25 (notably a 15% increase in profit attributable), delivered meaningful cash generation and completed major business-rebuilding steps while announcing FY26 guidance that shows continued revenue and profit increases. However, the outlook is tempered by material headwinds — notably U.S. tariffs (JPY ~55 billion impact in FY26), inflation-driven cost pressure, sizable one-time adjustment losses (JPY 112.5 billion) and regional demand challenges (North & Latin America, parts of Asia). Management is investing for growth (product launches, higher R&D/CapEx and organizational changes) which supports a constructive medium-term view, but near-term risks and missed MBP midterm targets keep the tone cautious.
Bridgestone’s FY2026 guidance targets sales of ¥4.5 trillion (+2% y/y), adjusted operating profit of ¥515 billion (+4% y/y) and net profit of ¥340 billion, implying an adjusted operating margin of 11.4% (+0.3 percentage points); management expects ~¥55 billion of U.S. tariff headwinds but plans to offset with price/mix, volume, business‑rebuilding returns and cost reductions. The company will increase R&D and CapEx (CapEx cited ~¥410 billion this year and overall R&D/CapEx to exceed the past two years), pursue segment recovery (Americas margin to the ~10% range, +0.6ppt; EMEA margin +~2ppt; APIC/India revenue and profit growth), and continue portfolio/brand initiatives. Key FY2025 reference metrics cited were revenue ¥4,429.5 billion, adjusted OP ¥493.7 billion, profit attributable ¥327.3 billion, adjusted OPM 11.1% (up 0.4ppt), ROIC 8.3% (up 0.2ppt), business‑rebuilding/cost‑reduction effects ~¥72 billion, adjustment items loss ¥112.5 billion, and free cash flow ¥435.5 billion. Capital allocation includes a ¥150 billion share buyback in FY26 (¥450 billion over FY24–26), dividend guidance of ¥125 per share post‑split (¥250 pre‑split) with an around‑50% payout ratio policy (FY26 implied ~46%), a midterm equity ratio target of ~55% and a cash reserve target of ~1.5 months of sales.
Revenue JPY 4,429.5 billion (+2% YoY), adjusted operating profit JPY 493.7 billion (+2% YoY, ≈JPY 10.4 billion), profit attributable to owners JPY 327.3 billion (+15% YoY, ≈JPY 42 billion). Adjusted operating margin improved to 11.1% (+0.4 percentage points) and ROIC improved to 8.3% (+0.2 points).
Free cash flow inflow of JPY 435.5 billion; completed planned share buyback (shares cancelled). FY25 dividend JPY 230 per share (+JPY 20). FY26 dividend guidance JPY 125 per share post-split (pre-split JPY 250, +JPY 20). Planned flexible share buyback JPY 150 billion in FY26 (JPY 450 billion total FY24–26).
Business rebuilding largely completed as planned; business cost reduction activities produced effects of approximately JPY 72 billion in FY25, helping offset tariff and raw material headwinds and improve profitability.
North America: sales down but adjusted operating margin improved by 1.5 percentage points to 11%. Europe: adjusted operating profit margin 5.5% (improvement >2 percentage points). Asia/India/Oceania: adjusted operating profit reached ~11.5%. Truck & Bus segment showed margin improvement; Specialties businesses maintain high profitability (exceeding 20% in parts) and Commercial B2B Solutions margin >11%.
FY26 guidance: revenue JPY 4.5 trillion (+2% YoY), adjusted operating profit JPY 515 billion (+4% YoY), adjusted OPM 11.4% (+0.3 points). Plans to launch >25 new passenger tire products globally and >10 new truck & bus products; R&D and CapEx to exceed levels of past two years to support growth-with-quality.
New executive structure emphasizing technology (CIO, CPO, CMO, West CTO reporting to CEO) to accelerate materials, product and manufacturing excellence. Brand-strengthening moves include return to FIA/F1 and sole supply for Formula E and continued motorsports investments (INDYCAR, Super GT) to enhance premium positioning.
Welcome to the announcement of financial results for Fiscal 2025 by Bridgestone Corporation. Thank you very much for taking the time out of your busy schedule to join us. First, I will introduce the speakers. Global CEO and Representative Executive Officer, Yasuhiro Morita; Executive Vice President, Representative Executive Officer, Bridgestone East CEO; Nobuyuki Tamura; Global CFO, Global Finance, Naoki Hishinuma. These are the 3 speakers. First of all, Global CEO and Representative Executive Officer, Yasuhiro Morita, will give you the presentation first.
I'm Morita, Global CEO. Thank you very much for taking the time to join us today despite your busy schedules. First, I will provide an overview of our full year results for fiscal 2025 and our business plan for fiscal '26. Amidst a rapidly changing business environment, including the impact of U.S. tariffs, we positioned fiscal '25 as the year of emergency and crisis management following the '24 MBP road map. We focus upon defensive activities such as business rebuilding and business cost reductions, concentrating our efforts on strengthening our fundamentals. We positioned fiscal 2026 as a crucial year for transitioning to growth with quality, building upon the foundations established thus far and intensifying our offensive activities. We will readily advance our progress, ensuring the reliable execution of key planned initiatives to evolve the entire group into a group-oriented organization.
Our aim is to reclaim the position of world's #1 by our 100th anniversary in 2031. I will now explain the full year results for fi...