ITOCHU (8001) Q2 2026 earnings summary

Executive summary

• First-half consolidated net profit reached ¥500.3 billion, up 14.1% year-over-year, marking a record high, driven by robust non-resource sector performance and extraordinary gains from asset replacements.

• Progress toward the full-year net profit forecast of ¥900.0 billion is at 56%, exceeding initial expectations.

• Operating cash flows hit a record ¥609.2 billion, and core profit increased year-over-year, especially in non-resource segments.

• Dividend per share increased to ¥210, marking 11 consecutive years of increases, and a 5-for-1 share split is scheduled for January 1, 2026.

• Revenues slightly decreased by 0.6% year-over-year to ¥7,249.2 billion, while gross trading profit increased by 3.7% to ¥1,209.6 billion.

Financial highlights

• First-half consolidated net profit: ¥500.3 billion, up ¥61.8 billion year-over-year, with 56% progress toward the full-year target.

• Core profit: ¥379.0 billion, up year-over-year, driven by non-resource sectors (+¥25.0 billion).

• Operating cash flows: ¥609.2 billion (record high); core operating cash flows: ¥503.0 billion.

• Net Debt/Equity Ratio improved to 0.47x; total assets increased to ¥15,586.0 billion as of September 2025.

• Gross trading profit for H1: ¥1,209.6 billion (+¥43.1 billion YoY).

Outlook and guidance

• Full-year net profit forecast remains unchanged at ¥900.0 billion, a 2.2% increase year-over-year.

• Core profit forecast revised to ¥800.0–820.0 billion, raising the lower end from the initial ¥770.0 billion.

• Dividend per share raised to ¥210 (pre-split), with a total payout ratio target of 50%.

• Basic EPS for FY2025 is projected at ¥127.95 post-share split (¥639.74 pre-split).

• Expect recovery in transactions in the second half as tariff uncertainties subside.