Cosmo Energy Holdings (5021) Q4 2026 earnings summary

Executive summary

• FY2025 ordinary profit reached ¥149.2 billion, with profit attributable to owners at ¥74.0 billion; excluding inventory valuation, ordinary profit was ¥165.7 billion and attributable profit ¥85.5 billion.

• Net sales for FY2025 were ¥2,677.6 billion, down 4.4% year-over-year, while operating profit rose 12.9% to ¥144.8 billion and profit attributable to owners of parent increased 28.4% to ¥74.0 billion.

• Comprehensive income surged 81.5% to ¥86.2 billion, reflecting improved profitability and capital policy execution.

• FY2026 forecast expects ordinary profit of ¥115.0 billion and attributable profit of ¥44.0 billion; excluding inventory valuation, ordinary profit is projected at ¥110.0 billion and attributable profit at ¥40.0 billion.

• Strategic initiatives include capital and business alliances, expansion in SAF and hydrogen supply chains, and digital transformation.

Financial highlights

• FY2025 net sales were ¥2,677.6 billion, down ¥122.3 billion year-over-year.

• EBITDA excluding inventory valuation was ¥219.6 billion, up ¥3.3 billion year-over-year.

• EPS for FY2025 was ¥523, up ¥62 year-over-year.

• Net assets rose to ¥735.8 billion, with an equity ratio of 27.6%.

• Cash and cash equivalents at year-end were ¥81.8 billion, up ¥46.9 billion year-over-year.

Outlook and guidance

• FY2026 net sales are forecast at ¥2,870.0 billion (+7.2%), but operating profit is expected to decline 29.6% to ¥102.0 billion and profit attributable to owners of parent to fall 40.6% to ¥44.0 billion.

• Annual dividend for FY2026 is planned at ¥165 per share, unchanged from FY2025.

• Assumptions include a crude oil price of $89/bbl and an exchange rate of ¥155/USD, with significant uncertainty due to Middle East geopolitical risks.

• Profits expected to decline due to negative time-lag effects and production constraints, but dividend remains stable.

• Capital expenditures for FY2026 are forecast at ¥194.0 billion, nearly doubling year-over-year.