Sumitomo Rubber Cuts 2026 Business Profit Forecast to ¥87 Billion
Key Facts
Sumitomo Rubber on November 12 cut its forecast for business profit in the fiscal year ending December 31, 2026, to ¥87 billion from ¥96 billion, and lowered its revenue estimate to ¥1,270 billion from ¥1,330 billion, according to a disclosure published through the Tokyo Stock Exchange’s disclosure system. The company attributed the revision to higher raw material prices, a greater tariff burden and foreign exchange effects. It said lower selling prices than assumed had been partly offset by an improved product mix. The annual forecast cut puts the company’s outlook under pressure, despite revenue and profit growth in the first nine months of the year. Its shares, 5110.T, closed at ¥2,158 on November 12, according to EL7 data.
According to the disclosure, the annual revenue estimate fell by ¥60 billion, or 4.5%, from the previous forecast, while the business profit estimate declined by ¥9 billion, or 9.4%. The revision indicates that the company expects cost pressures to reduce forecast profit at a faster pace than revenue. The company said an improved product mix supported prices, but did not fully offset the impact of higher raw materials, tariffs and foreign exchange movements. The adjustment followed positive results for the period ended in September, leaving the full-year forecast to reflect challenges expected in the remainder of the year. The revised estimate covers the fiscal year ending December 31, 2026.
In the nine months ended September 30, 2026, Sumitomo Rubber’s revenue rose 9.6% to ¥944.262 billion from the same period in 2025, while business profit increased 21.7% to ¥59.040 billion. Net profit attributable to owners of the parent also rose 35.9% to ¥35.360 billion. The figures show year-on-year growth across all three measures for the period, before the company cut its annual forecast in November. With the company projecting business profit of ¥87 billion for the full year, its disclosure ties the revised outlook to higher input costs, tariffs and foreign exchange effects. The nine-month results compare with the corresponding period a year earlier, while the revised forecast covers the full fiscal year.
By segment, the tire business generated revenue of ¥815.369 billion in the nine months, up 10.2% year on year, while its business profit rose 15.9% to ¥47.429 billion. In the sports business, business profit increased 93.7% to ¥9.014 billion over the same period. The company said the start of DUNLOP-brand tire sales in Europe in January boosted sales, but overall tire sales growth remained slight during the nine months. It attributed this to a weak market and conditions in the Middle East. Thus, growth in the profits of the two segments cited in the disclosure coincided with slight growth in overall tire sales, as the company lowered its annual profit forecast.