Yokohama Rubber reports double-digit increases in sales, earnings

Hiratsuka, Japan – Yokohama Rubber Co. (YRC) has reported double-digit increases in both sales and earnings for 2025, marking the group's fifth consecutive year of growth.

Earnings (business profit) last year came in at Yen166.6 billion (€913 million), up 24% year-on-year, on 12.8% higher revenue of Yen1,235.0 billion, YRC reported 19 Feb.

YRC linked the ‘record high’ results to a strong performance across its existing businesses, which offset the one-time costs related to the acquisition of Goodyear’s off-the-road (OTR) unit.

The group's Tires business reported a 14% increase in overall sales to Yen1,121 billion, including a 27.5% increase in off-highway tires (OHT) sales to Yen371 billion.

Segment earnings increased markedly: up 22% year-on-year to Yen155 billion, as OHT earnings lifted 13.8% to Yen31.3 billion.

Commenting, YRC said its ‘Tire business’ profit rose on higher unit sales of consumer tires and continued growth in sales of high-value-added Advan, Geolandar, and Winter (AGW) tires as well as high-inch tires.

According to the tire maker, the impact from higher US tariffs ‘subsided’ in the second half of 2025 and consumer spending picked up moderately amid improving employment and income environments.

In addition, Japanese companies’ business sentiment remained generally positive as declining energy costs and other factors contributed to lower costs.

In overseas markets, the US economy continued to slow despite some diminished impact from higher US tariffs as consumer spending remained weak.

European economies were weighed down by the negative impact  of 'high tariffs’ on external demand.

The Chinese economy, meanwhile, benefited from strong external demand, but domestic demand was depressed by negative growth in consumer spending and fixed asset investment.

In this business environment, YRC noted that it’s transformation strategy (YX2026) had produced “strong results in all tire segment businesses… and is driving a significant shift in the segment’s revenue structure.”

Consumer tire OE sales revenue increased year on year in Japan while in North America and Europe “an expanding number of new vehicles [are] adopting Yokohama tires.”

OE sales in North America and Europe were driven by greater adoption of Yokohama tires particularly for SUVs and CUVs, as well as other new cars.

Replacement tire revenue also increased, driven by sales activities in Japan, demand for high-inch tires in Europe, and strengthening sales in North America of tires for on-road SUVs and CUVs.

Sales in the OHT business increased over last year, helped in part by contribution from Goodyear’s OTR acquisition in February 2025.

In the agricultural segment, YRC said the OE market machinery “remains difficult” but noted that it was able to increase market share last year.

In the agricultural replacement tire market, sale grew in key markets such as Europe and North America, helped by a multi-brand strategy focused on our Mitas, Alliance, and Galaxy tires.

The group’s non-tire, industrial products ‘multiple business’ returned to black, posting earnings of Yen500 million, compared to a loss of Yen1.4 billion the year before. Segment sales remained flat at Yen105 billion.

Sales increased year-on-year in the segment’s hose & couplings business, driven by demand from car makers in North America, offsetting weak demand from construction machinery makers in Japan.

The industrial products business sales revenue increased year-on-year on stable orders for its conveyor belts and strong demand for its marine products, and increased orders for defence-related equipment.

The segment improved profitability as managed to “drastically reduce costs, and make other structural reforms.”