Bridgestone Corporation

FY2025 consolidated revenue was JPY 4,429.5 billion, adjusted operating profit was JPY 493.7 billion, and profit attributable to owners of the parent was JPY 327.3 billion. Excluding FX, revenue and profit increased year over year; adjusted operating margin improved by 0.4 points to 11.1%, and ROIC improved to 8.3%. U.S. tariffs reduced profit by about JPY 25 billion, while business cost reduction activities contributed about JPY 72 billion in FY2025. For FY2026, Bridgestone guided to revenue of JPY 4.5 trillion, adjusted operating profit of JPY 515 billion, and net profit of JPY 340 billion, with U.S. tariff impact expected to reduce profit by about JPY 55 billion. The company also projected FY2026 dividend of JPY 125 per share after the stock split, up JPY 10 year over year, and said it will conduct JPY 150 billion of share buybacks in FY2026; CapEx was described as around JPY 410 billion in the discussion.

Morita framed FY2025 as a year of emergency and crisis management, centered on rebuilding the business and cutting costs, and FY2026 as a pivotal transition to “growth with quality.” He said Bridgestone’s growth strategy will focus on attractive products, manufacturing excellence, global portfolio management, and brand reinforcement, with a goal of regaining the world’s #1 position by 2031. He emphasized that the new executive structure is meant to speed decision-making and strengthen technology-led execution.

Hishinuma highlighted that FY2025 results beat the November plan, with adjusted operating margin at 11.1% and ROIC at 8.3%, helped by leaner inventory and a JPY 435.5 billion free cash flow inflow. He said adjustment items were a JPY 112.5 billion loss and noted that business rebuilding expenses were largely completed as planned. For FY2026, he pointed to revenue of JPY 4.5 trillion, adjusted operating profit of JPY 515 billion, and margin of 11.4%, with higher operating expenses reflecting strategic spending on brand, IT, and productivity as well as inflation. He also reiterated the capital policy: cash reserves around 1.5 months of monthly sales, a midterm equity ratio target of around 55%, a payout ratio target around 50%, JPY 150 billion of buybacks in FY2026, and JPY 250 per share dividends on a pre-split basis in line with the FY2026 plan.

Analysts pressed management on how the company will regain global leadership, and Bridgestone answered that the core will be product and manufacturing excellence, better cost competitiveness, and stronger collaboration across materials, product development, and manufacturing under the new executive structure. Questions also focused on the lower buyback amount and whether capital allocation is shifting toward growth; management said excess cash after growth investment may still go back to shareholders, but the balance between investment and returns remains unchanged. On tariffs, management said the FY2026 estimate of JPY 55 billion reflects a longer period of impact, while business cost reduction and rebuilding should offset as much as possible. Analysts also asked about CapEx and Firestone; management said CapEx will mainly support premium/high-performance products, retail investment in the U.S., MasterCore mining tires, HRD conversion, and IT, while Firestone revitalization has already shown visible growth, especially since the second half of last year.