Mitsubishi Materials (5711) Q3 2026 earnings summary

Executive summary

• Net sales and operating profit declined year-over-year, mainly due to lower gold production, weaker concentrate purchase terms, and Metals segment weakness, but ordinary profit increased on higher dividend income and equity-method earnings.

• Strategic investments in U.S. recycling and resource circulation businesses were made to support medium-term growth, including the acquisition of Elemental USA E-Waste & ITAD, Inc.

• The Metalworking Solutions segment benefited from a new subsidiary and price optimization, offsetting declines in Metals and Electronic Materials.

• Total assets increased to ¥2,929.2 billion, mainly due to higher inventories and leased gold bullion; liabilities rose from deposited gold bullion and interest-bearing debt.

• Business segmentation changes and finalization of business combination accounting were announced, impacting future reporting.

Financial highlights

• Net sales for Q1-3 FY26: ¥1,284.48 billion (down 13.4% year-over-year).

• Operating profit: ¥27.38 billion (down 15.2% year-over-year).

• Ordinary profit: ¥61.16 billion (up 7.6% year-over-year), driven by higher dividends and equity-method earnings.

• Profit attributable to owners of parent: ¥36.39 billion (down 26.0% year-over-year), mainly due to absence of prior-year gains and structural reform costs.

• Metal prices increased year-over-year: copper +8.1%, gold +45.5%, palladium +22.9%.

Outlook and guidance

• Full-year net sales forecast: ¥1,760.0 billion (up ¥170.0 billion vs. previous forecast, down 10.3% year-over-year).

• Operating profit forecast: ¥47.0 billion (up ¥32.0 billion vs. previous forecast, up 26.6% year-over-year).

• Ordinary profit forecast: ¥76.0 billion (up ¥33.0 billion vs. previous forecast, up 26.2% year-over-year).

• Profit attributable to owners of parent forecast: ¥20.0 billion (no change, down 41.3% year-over-year); EPS forecast at ¥153.06.

• Annual dividend forecast: ¥100/share (unchanged; interim dividend of ¥50/share paid).