Mitsubishi Materials (5711) Q2 2026 earnings summary

Executive summary

• H1 net sales fell to ¥829.9 billion, down 16.1% year-over-year, mainly due to reduced copper cathode and precious metal bullion production, yen appreciation, and absence of prior-year one-time gains.

• Operating profit dropped to ¥10.9 billion (down 60.3% YoY), impacted by exchange rate differences, concentrate purchase conditions, and lower production.

• Ordinary profit was ¥16.7 billion (down 33.0% YoY), with positive factors like reversal of prior-year FX losses and higher equity-method investment profit offset by lower operating profit.

• Profit attributable to owners of parent declined to ¥5.4 billion (down 77.8% YoY), affected by the absence of prior-year equity gains and impairment losses from scaling down copper concentrate processing.

• Declines were also driven by adverse concentrate purchase conditions and lower gold output.

Financial highlights

• Net sales: ¥829.9 billion (down 16.1% YoY).

• Operating profit: ¥10.9 billion (down 60.3% YoY).

• Ordinary profit: ¥16.7 billion (down 33.0% YoY).

• Profit attributable to owners of parent: ¥5.4 billion (down 77.8% YoY).

• Gross profit fell to ¥76.2 billion from ¥93.4 billion YoY; comprehensive income dropped 72.6% YoY to ¥3.9 billion.

Outlook and guidance

• Full-year net sales forecast revised down to ¥1,590.0 billion (down 19.0% YoY and ¥280.0 billion from previous forecast).

• Operating profit forecast raised to ¥15.0 billion (down 59.6% YoY, up ¥5.0 billion from previous forecast); ordinary profit to ¥43.0 billion (down 28.6% YoY, up ¥10.0 billion).

• Profit attributable to owners of parent forecast unchanged at ¥20.0 billion (down 41.3% YoY).

• Dividend forecast maintained at ¥100/share for the full year.

• H2 assumptions: exchange rate ¥140–145/$, copper price 425–435¢/lb.