Yokohama Rubber and Sumitomo Rubber release first half results: profits both increase significantly

YokohamarubberOn August 10th, the financial performance for the first half of 2026 was disclosed: the group's sales increased by 10.4% year-on-year to 639.4 billion yen, and business profits increased significantly by 54.3% to 96 billion yen. The company claims that both sales and business profits reached historic highs in the first half of the year.

Based on strong performance, Yokohama Rubber has raised its full year performance guidance. The group expects its annual sales to reach 1.32 trillion yen, an increase of 1.5% from the May forecast and a year-on-year increase of 6.8%; The business profit target has been adjusted to 192.5 billion yen, an increase of 2.4% from the previous forecast and a year-on-year increase of 15.5%.

By sector, the tire business contributed nearly 91% of the group's sales, with revenue increasing by 10.8% year-on-year to 580.4 billion yen and business profit increasing by 57.2% to 89 billion yen. Sales of passenger car tires increased by 14.8% to 213.6 billion yen, while business profits surged by 83.1% to 26 billion yen. Among them, the strong sales in the Japanese original parts market compensated for the continued weakness of Japanese car companies' sales in China; The replacement market benefits from the strong demand for large-sized and high value-added tires in Europe, as well as the development of new customers and the expansion of existing customer businesses. Despite the challenging demand environment, Off Highway Tires (OHT) still achieved a 7% sales growth, driven by multi brand strategies such as Mitas and Alliance, as well as the release of new products in North America, which boosted the replacement market.

On the same day, Sumitomo Rubber also announced its first half performance: the group's sales increased by 8.3% to 620 billion yen, and business profits improved by 40.6% to 39.8 billion yen. The performance in the second quarter was particularly outstanding, with profits soaring by 162% year-on-year to 23 billion yen and sales increasing by 112% to 317.6 billion yen.

It is worth noting that Sumitomo Rubber officially launched Dunlop brand tire sales in Europe in January this year, driving a significant increase in sales in the European replacement market. But the company also admits that the overall market environment remains sluggish, and the geopolitical tensions in the Middle East have dragged down demand in some parts of Asia.

The sales revenue of the tire sector increased by 9.4% to 535 billion yen in the first half of the year, and the sector's profit increased by nearly 54% to 34 billion yen. The Japanese replacement market achieved year-on-year growth driven by strong sales of summer and all-weather tires. Sports business revenue increased by 3.1% to 66.6 billion yen, but profit decreased by 7.2%; Sales and profits in the industrial and other product sectors both declined, mainly due to shrinking sales of rubber parts for office equipment and artificial turf, as well as rubber gloves caused by the Iran conflictraw materialThe impact of skyrocketing prices.

The two performance indicators jointly demonstrate that in an environment where demand is not strong, upgrading product structure towards larger sizes and higher added value, flexible operation of multiple brands, and strict cost control are the core driving forces for the two Japanese tire giants to achieve significant profit growth.

　　Editor: Zhang Xianglong