Cosmo Energy Holdings (5021) Q2 2026 earnings summary

Executive summary

• Ordinary profit for 2Q FY2025 was ¥53.2 billion, with profit excluding inventory valuation at ¥72.9 billion, reflecting a negative inventory impact of ¥19.7 billion.

• Profit attributable to owners of parent was ¥23.6 billion, or ¥37.4 billion excluding inventory valuation.

• Net sales for the first half of FY2025 were ¥1,333.8 billion, up 1.0% year-over-year, with operating profit at ¥60.3 billion, up 46.2% year-over-year, and profit attributable to owners at ¥23.6 billion, up 14.5% year-over-year.

• Comprehensive income rose to ¥28.0 billion, a 14.7% increase year-over-year.

• A 2-for-1 share split was executed on October 1, 2025, and 5.8 million treasury shares were canceled in August 2025.

Financial highlights

• Net sales for 2Q FY2025 reached ¥1,333.8 billion, up ¥12.7 billion year-over-year.

• Operating profit rose to ¥60.3 billion, up ¥19.1 billion year-over-year.

• Net assets at September 30, 2025, were ¥717.0 billion, with a net worth ratio of 27.9%.

• Net cash provided by operating activities surged to ¥120.4 billion from ¥21.2 billion year-over-year.

• Cash flows from operating activities were ¥120.4 billion, with free cash flow at ¥96.7 billion.

Outlook and guidance

• Full-year FY2025 forecast: net sales ¥2,580.0 billion (-7.9% year-over-year), operating profit ¥123.0 billion (-4.1%), ordinary profit ¥121.0 billion (-19.7%), profit attributable to owners ¥53.0 billion (-8.1%).

• FY2025 ordinary profit forecast is ¥121.0 billion, with profit excluding inventory valuation at ¥165.0 billion.

• Petroleum business profit is expected to rise due to higher domestic margins and improved refinery utilization.

• Oil E&P profit is projected to decline due to lower crude prices and FX effects, but production volume will increase from Hail Oil Field ramp-up.

• Renewable energy profit is expected to grow with new site operations.