Mitsubishi Corporation (8058) investor relations material

Executive summary

• FY2025 underlying operating cash flow reached ¥1,048.1 billion, exceeding the forecast, with consolidated net income at ¥800.5 billion, also above expectations.

• Revenues rose 1.6% year-over-year to ¥18,916.0 billion, driven by higher market prices, partially offset by the reclassification of Lawson as an equity method affiliate.

• FY2026 forecasts underlying operating cash flow of ¥1,250.0 billion and consolidated net income of ¥1,100.0 billion, with a dividend increase to ¥125 per share.

• Progress continues toward ¥400 billion profit growth by FY2027 under the "Enhance," "Reshape," and "Create" initiatives, with a revised cash flow allocation plan.

• Comprehensive income surged 40.6% year-over-year to ¥1,667.4 billion, reflecting significant gains in other comprehensive income.

Financial highlights

• FY2025 consolidated net income was ¥800.5 billion, down from ¥950.7 billion in FY2024, mainly due to lower one-time gains and Lawson's reclassification.

• Underlying operating cash flow grew 7% year-over-year to ¥1,048.1 billion.

• Dividend per share increased from ¥100 in FY2024 to ¥110 in FY2025, with a further rise to ¥125 planned for FY2026.

• Gross profit decreased to ¥1,655.1 billion from ¥1,836.4 billion year-over-year.

• Total assets grew to ¥24,151.7 billion, up ¥2,655.6 billion year-over-year.

Outlook and guidance

• FY2026 consolidated net income is forecast at ¥1,100.0 billion, a 37% increase year-over-year.

• Underlying operating cash flow is projected at ¥1,250.0 billion for FY2026.

• Dividend per share to rise to ¥125 in FY2026, with flexible share buybacks and a three-year average payout ratio expected to exceed 40%.

• FY2027 targets include ROE of 12%+ and continued profit growth from strategic initiatives.