BRIDGESTONE CORP (BRDCY) Q1 2026 Earnings Call Transcript
Neutral Other 27.98B Japan
Next Earnings
2026-05-14
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Bridgestone posted FY25 revenue of JPY 4.43 trillion with solid profit gains, announced a growth-with-quality plan for FY26 including higher revenue, margin expansion, and a new tech-focused executive structure to drive premium product development and global expansion.
⭐ Key Highlights
FY25 Revenue and Profit
Consolidated revenue reached JPY 4,429.5 billion with adjusted operating profit of JPY 493.7 billion, up 2% YoY and net profit attributable to owners of parent at JPY 327.3 billion.
Tariff Impact and Cost Reductions
U.S. tariffs reduced profit by about JPY 25 billion in FY25; cost reductions and supply-chain optimization largely mitigated this impact.
Dividends and Share Buyback
Dividend for FY25 raised to JPY 230 per share; guidance for FY26 includes JPY 125 per share post-split and a JPY 150 billion buyback in FY26, with total buybacks planned at JPY 450 billion over three years.
FY26 Guidance and Growth Plan
Guidance for FY26: revenue JPY 4.5 trillion, adjusted OP JPY 515 billion, net profit JPY 340 billion; OPM targeted at 11.4% with growth supported by 25+ new passenger tires and 10+ new truck/bus tires.
New Executive Structure
Effective March 24, 2026, Bridgestone will establish four executive officers focused on technology, product, and manufacturing to accelerate growth with quality.
Strategic Focus for Growth
Three growth pillars: attractive/products with manufacturing excellence, portfolio strengthening, and brand power, including premium tires and expansion into new markets such as India and the global south.
✔Positive Signals
- YoY improvement in adjusted operating profit and net income
- Significant cost reductions (~JPY 72 billion) contributing to profitability
- Firestone revitalization showing growth momentum in North America
- FY26 plan includes >25 new passenger tires and >10 new truck/bus tires
- Dividend increase and substantial share buyback signaling capital allocation discipline
✖Negative Signals
- U.S. tariff impact remains material (FY25 ~JPY 25b; FY26 ~JPY 55b)
- Regional softness in North America with volume headwinds
- Brazil/LATAM profitability under pressure; some regions lag
- FY26 guidance implies ongoing inflation and tariff offset pressures
- Last year’s MBP targets (13% OPM and 10% ROIC) not met in some areas
📊Financial Results
- FY25 revenue: JPY 4,429.5 billion vs plan/specifications; adjusted OP: JPY 493.7 billion; profit attributable to owners of the parent: JPY 327.3 billion
- Adjusted OP margin improved to 11.1% (ex-FX), ROIC 8.3% (up 0.2 pp)
- Cash conversion and lean inventory contributed to better ROIC; free cash flow: JPY 45.5 billion
- Segment profitability improved across Japan, Americas, Europe, and Asia-Pacific
- FY25 adjusted items included a net loss of JPY 112.5 billion from onetime adjustments; ongoing rebuilding largely completed
🔮Future Guidance
- FY26 guidance: revenue JPY 4.5 trillion, adjusted OP JPY 515 billion, net profit JPY 340 billion; OPM 11.4%
- Tariff impact expected to be ~JPY 55 billion in FY26; offset through price/mix, productivity, and cost reduction
- Dividend guidance: JPY 125 per share post-split (JPY 250 pre-split), and a JPY 150 billion share buyback in FY26 (JPY 450 billion over 3 years)
- CapEx around JPY 410 billion in FY26 focused on premium product capabilities, IT, and Retail/HL store investments; notable investments in MASTERCORE and HRD/IT
- Strategy shifts toward growth with quality by increasing R&D/CapEx and expanding in high-potential regions like India and the broader global south
💡Interesting Insights
- Introduction of a new executive structure with four technology-focused officers (CIO, CPO, CMO, CTO) reporting to the global CEO to accelerate innovation, product development, and manufacturing efficiency
Detailed Analysis
AI-generated summary of BRIDGESTONE CORP earnings call transcript.
Bridgestone's FY25 results show revenue of JPY 4.4295 trillion and adjusted operating profit of JPY 493.7 billion, with net profit at JPY 327.3 billion, driven by cost reductions and a favorable mix despite US tariff headwinds. The company implemented meaningful cost-reduction programs (~JPY 72 billion) and completed major rebuilding initiatives, setting the stage for a transition to growth with quality in FY26. The FY26 plan targets revenue of JPY 4.5 trillion, adjusted OP of JPY 515 billion, and net profit of about JPY 340 billion, aided by higher volumes, new product launches (over 25 passenger tires and 10 truck/bus tires), and higher R&D/CapEx for premium products and manufacturing efficiency. A new four-executive leadership structure focusing on technology, product, and manufacturing is introduced to accelerate execution. The company remains mindful of a projected US tariff impact (~JPY 55 billion in FY26) and maintains a balanced capital policy, including a dividend of JPY 125 per share post-split and a JPY 150 billion buyback in FY26, with ongoing emphasis on shareholder value and sustainable growth from a strong capital base.
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