Mitsubishi Corporation (8058) Q4 2025 earnings summary

Executive summary

• FY2024 consolidated net income was ¥950.7 billion, with underlying operating cash flow at ¥983.7 billion, meeting all Midterm Corporate Strategy 2024 quantitative targets.

• Revenues for the year ended March 31, 2025, declined 4.9% year-over-year to ¥18,617.6 billion, mainly due to lower sales volumes and Lawson's reclassification as an equity method affiliate.

• FY2025 net income forecast is ¥700 billion, reflecting the absence of major capital recycling gains; underlying operating cash flow expected at ¥900 billion, driven by non-resource businesses.

• Shareholder returns include a ¥1 trillion share repurchase program and a dividend increase to ¥110 per share for FY2025.

• Major portfolio changes included the divestiture of Lawson, Inc. and Princes Limited, and the sale of Australian coal mine interests.

Financial highlights

• FY2024 underlying operating cash flow decreased by ¥194.8 billion year-over-year to ¥983.7 billion, mainly due to lower volumes and market conditions in steelmaking coal and ASEAN automotive.

• Consolidated net income for FY2024 was ¥950.7 billion, nearly flat year-over-year, supported by major capital recycling gains.

• Operating income rose 2.3% year-over-year to ¥1,393.4 billion, while gross profit fell by ¥523.3 billion to ¥1,836.4 billion.

• Free cash flow improved to ¥1,384.4 billion, driven by higher operating cash flows and lower income tax payments.

• Dividend per share increased from ¥70 in FY2023 to ¥100 in FY2024, with a further rise to ¥110 planned for FY2025.

Outlook and guidance

• FY2025 consolidated net income is projected at ¥700 billion, a 26% decrease year-over-year, mainly due to the absence of one-time capital recycling gains.

• Underlying operating cash flow for FY2025 is forecast at ¥900 billion, with continued strength in non-resource businesses offsetting resource sector declines.

• ROE expected at 7.9% for FY2025, aiming for 12% or higher by FY2027.

• Annual dividend forecast for FY2025 is ¥110.00 per share.

• Company targets average annual operating cash flow growth of at least 10% under new strategy.