THE YOKOHAMA RUBBER CO., LTD.
5101・Prime Market・Rubber Products
Business
Yokohama Rubber Co., Ltd. was founded in 1917 and is a global rubber manufacturer comprising 158 subsidiaries and 35 affiliated companies. The Tires segment accounts for 90.8% of revenue, covering a wide range of categories including passenger cars, trucks and buses, agricultural machinery, and construction and mining. The remaining 8.5% consists of the MB (Multiple Business) segment, which offers industrial rubber products such as conveyor belts, marine hoses, aircraft parts, and automotive hoses. The company has manufacturing facilities both domestically and overseas, and has built sales networks across regions including Europe, the Americas, Asia, and the Middle East. In February 2025, the company acquired Goodyear's OTR business, achieving a full lineup of Off-Highway Tires (OHT).
Business Model
In Tire Consumer Products, the company aims to increase the sales ratio of high-value-added products through an "OE Return Strategy" centered on premium brands such as "ADVAN" and "GEOLANDAR"—first securing original equipment (OE) fitment on premium cars, then leveraging that to expand into the replacement (aftermarket) segment. In the OHT (Off-Highway Tires) domain, the company covers Tier 1 to Tier 3 customer segments through a multi-brand strategy encompassing Trelleborg, Mitas, Alliance, and Galaxy, maintaining the top global share in agricultural tires. The MB (Multiple Business) segment secures complementary earnings through stable orders in industrial materials, marine products, defense equipment, and other areas.
Company Strengths
Consolidated revenue for FY2025 was ¥1,234,959 million (up 12.8% year on year), operating profit was ¥152,901 million (up 28.3% year on year), and profit attributable to owners of the parent was ¥105,398 million (up 40.7% year on year), achieving 5 consecutive periods of revenue and profit growth and setting new record highs across all metrics. The company has maintained a high growth trajectory, with revenue growing approximately 84% over four years from ¥670,809 million in FY2021.
The company holds the top share within the group in tires for agricultural and forestry machinery, which account for approximately 40% of the OHT (Off-Highway Tires) market. Through a multi-brand approach spanning Trelleborg and Mitas (premium) and Alliance and Galaxy (value), the company covers Tier 1 through Tier 3 segments and has achieved sales growth exceeding demand in key markets in Europe and North America. The acquisition of Goodyear's OTR business in February 2025 added construction and mining tires, completing a full OHT (Off-Highway Tires) lineup.
As a flagship initiative of the medium-term management plan YX2026, the company achieved a "one-year factory," launching a plant from construction start to the start of prototype tire production in 11 months (one month ahead of the target). This is a production innovation model aimed at accelerating investment recovery and maximizing profitability through early mass-production ramp-up, and horizontal deployment is also planned for the new plant in Mexico and existing plants.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal periods grew approximately 84%, from ¥670,809 million (FY2021) to ¥1,234,959 million (FY2025), sustaining high growth. In Q1 FY2026 (ending December 2026), revenue was ¥303,806 million (up 10.4% year on year), business profit was ¥44,439 million (up 84.6% year on year), and quarterly profit attributable to owners of the parent was ¥14,717 million (up 72.6% year on year), showing significant improvement across all metrics. The revenue-to-business-profit margin improved sharply from 8.7% to 14.6%. As an external factor, the effect of a weaker yen (a positive contribution of ¥9,364 million from foreign currency translation adjustments related to overseas operations) supported performance, while unfavorable weather in North America and sluggish sales by Japanese automakers in China acted as partial headwinds. The full-year forecast has been revised to revenue of ¥1,300,000 million (up 5.3% year on year) and business profit of ¥188,000 million (up 12.9% year on year).
Growth Strategy
Under YX2026, the company is pursuing an integrated strategy of OHT (Off-Highway Tires) expansion, higher value-added products, and low-cost production, aiming to achieve record profits.
Focus on sales of high-inch products and AGW under premium brands centered on ADVAN and GEOLANDAR, continuing to improve the revenue mix. Promoting new customer development and expansion of existing customer transactions in Europe, Japan, China, and India. Achieved a business profit margin of 14.6% in Q1 of FY2026 (ending December 2026), with the effects becoming visible.
Promoting a multi-brand strategy with Mitas, Alliance, and Galaxy in agricultural tires, aiming for recovery in North America and improved share in Europe. Also working to expand sales of OHT (Off-Highway Tires) for mining and construction applications amid a challenging demand environment, securing results in Q1 of FY2026 (ending December 2026) that exceeded the same period of the previous year.
Continuing to accumulate structural reforms, including the closure of the Salem plant in the U.S. (one-time costs of ¥13,000 million already recorded), and fundamental cost reductions. Enhancing mid- to long-term profit-generating capability through fixed cost reduction and improved production efficiency. Business profit in Q1 of FY2026 (ending December 2026) increased 84.6% year on year, with the effects of internal efforts becoming visible.
Achieved business profit of ¥2,237 million (up 21.2% year on year) through maintaining a high share in conveyor belts, securing marine product deals, and increasing orders for defense equipment. Pursuing both profitability improvement in existing businesses and development of new growth areas in parallel. The business profit margin improved to 9.3%.
Last updated: July 17, 2026