ENEOS (5020) Q4 2025 earnings summary

Executive summary

• FY2024 operating profit was ¥106.1bn, up ¥81.1bn from forecast, driven by inventory gains, but down 72.2% year-over-year due to challenging conditions and Metals segment reclassification.

• Excluding inventory valuation, FY2024 operating profit was ¥163.7bn–¥429.3bn, down year-over-year due to renewable energy impairments and segment changes.

• FY2025 operating profit is forecast at ¥360.0bn, up sharply year-over-year, reflecting goodwill impairment reversal and maritime business sale.

• Revenue for FY2024 was ¥12,322.5bn, nearly flat year-over-year; FY2025 revenue is projected to decline 5% to ¥11,700.0bn.

• Major segment reorganization: Metals business reclassified as discontinued after JXAM's listing and partial share sale.

Financial highlights

• FY2024 profit attributable to owners was ¥226.1bn, down year-over-year; one-time gain from JXAM listing offset by lower core profits.

• ROE (excluding inventory valuation) improved to 8.4% in FY2024; forecast to decrease to 7% in FY2025.

• Free cash flow in FY2024 was ¥707.6bn (excluding holiday impact); net D/E ratio improved to 0.42–0.48.

• Cash and cash equivalents at year-end were ¥846.6bn, up ¥70.7bn from prior year.

• Basic profit per share was ¥79.96, down from ¥95.64 year-over-year.

Outlook and guidance

• FY2025 operating profit (excl. inventory valuation) expected at ¥410.0bn, flat to up year-over-year, with positive impacts from one-time factors offset by lower oil prices and strong yen.

• Profit attributable to owners forecast to decline 18% to ¥185.0bn; revenue to fall 5% due to lower oil prices and exchange rates.

• Dividend per share set at ¥30, with a policy to progressively increase dividends based on results; payout ratio forecast at 43.6%.