Bridgestone raises adjusted earnings amid trade, currency pressures

Tokyo – Bridgestone Corp. has reported a year-on-year improvement in adjusted earnings (operating profit), helped by restructuring efforts and cost-reduction measures.

The Japanese group posted a 2% increase in adjusted earnings to Yen494 billion (€2.7 billion), up from Yen483 billion reported in 2024.

Sales fell marginally to Yen4,429 billion for the full year, from Yen4,430 billion reported the year before, Bridgestone announced 16 Feb.

Bridgestone said it experienced “firm sales” of premium replacement tires (including high-rim diameter tires of 18 inches or more) and ultra-large tires for mining vehicles during the year.

However, lower OE volumes and a sales decline in Latin America and chemical/industrial products business led to the marginal dip in revenue.

On a constant currency basis, Bridgestone said revenue would have edged up year-on-year.

Adjusted earnings, meanwhile, rose despite exchange rate impacts, high raw material costs and unrealised profit in inventory.

This, Bridgestone said, was achieved through improved sales prices and mix, various measures to absorb the impact of US tariffs, as well as restructuring and cost-reduction efforts globally.

Operating profit declined 14% year-on-year to Yen381 billion, due primarily to the recording of restructuring and rebuilding-related expenses.

Commenting on the business environment during 2025, Bridgestone said the year was characterised by “a highly volatile and increasingly uncertain business environment.”

Additional US tariffs affected direct material costs within the group and tire exports to the US, Bridgestone said, noting further pressure in the US market from the economic slowdown.

Slow tire demand in key markets in North America led to a “significant year-on-year decrease” in demand for new truck and bus tires.

In addition, the group said last-minute demand increased for replacement PC/LT tires in North America ahead of the enforcement of tariffs.

On the other hand, demand in Japan and Asia remained generally strong, while Europe was “mostly unchanged” compared to the year before.

In Japan, Bridgestone posted a 6% increase in adjusted earnings to Yen198 billion, on 3% higher sales of Yen1,266 billion.

Volumes were “steady” for replacement PC/LT and TBR tires, while OE demand for PC/LT tires fell in the region.

In addition to higher volumes, price and mix improvements absorbed the effects of soaring raw material prices, inflation and exchange rates.

In Asia-Pacific, India and China, revenue and earnings grew 2% year-on-year to Yen517.8 billion and Yen59.6 billion, respectively.

Here, Bridgestone said TBR sales fell “significantly” from the previous year, but replacement volumes for PC/LT tires remained strong.

“Soaring raw materials costs and inflation” were absorbed by price/mix improvements, while business restructuring also contributed to increased profit.

In the Americas, sales dropped 2% year-on-year to Yen2,130 billion, while adjusted earnings increased 12% year-on-year to Yen201 billion.

Volumes for replacement PC/LT tires remained “mostly unchanged” in North America, while replacement TBR demand was strong.

OE demand declined year-on-year in North America, while volumes for PC/LT replacement tires and TBR tires fell “significantly” in the Latin America region, Bridgestone noted.

Despite inflation effects, US tariffs, and the deterioration of the business environment in Latin America, Bridgestone said its profits rose in the region due to improved price/mix and restructuring efforts.

In Europe, the Middle East and Africa, results improved significantly, with adjusted earnings up 42% to Yen42 billion, on 2% year-on-year higher sales of Yen853 billion.

PC/LT replacement volumes remained “steady” for the year, while TBR unit sales declined compared to 2024.

Despite lower overall volumes, Bridgestone said price/mix improvements and restructuring enhanced profitability in the region.