Mitsui & Co (8031) Q1 2027 earnings summary

Executive summary

• Q1 profit attributable to owners reached a record ¥294.1 billion, up ¥102.5 billion year-over-year, with core operating cash flow (COCF) at ¥280.9 billion, both exceeding business plan targets.

• Revenue for the quarter rose 31.7% year-over-year to ¥4,347.6 billion, and comprehensive income surged 98.7% year-over-year.

• Growth was driven by asset recycling, IPO gains, and strong segment contributions, especially in Innovation & Corporate Development, Chemicals, and Energy.

• A ¥200 billion share repurchase program was announced, with all repurchased shares to be cancelled to enhance per-share value and capital efficiency.

• No material business impact from the Kumamoto earthquake, but ongoing monitoring and support measures are in place.

Financial highlights

• COCF for Q1: ¥280.9 billion (+¥64.6 billion YoY); profit: ¥294.1 billion (+¥102.5 billion YoY); gross profit rose to ¥413.7 billion from ¥301.4 billion YoY.

• Cash inflows totaled ¥340 billion (COCF ¥281 billion, asset recycling ¥59 billion); cash outflows for investments and loans were ¥147 billion.

• Net interest-bearing debt increased to ¥4,416.7 billion, with a net D/E ratio of 0.49x; shareholder equity rose to ¥9 trillion.

• Interim and year-end dividends set at ¥70 each, totaling ¥140 per share, up ¥25 from the previous year.

• Earnings per share (basic) rose to ¥103.73 from ¥66.68 year-over-year.

Outlook and guidance

• Full-year profit forecast is ¥920 billion and COCF is ¥1,050 billion, with Q1 progress at 32% and 27% respectively; full-year guidance to be revised upward.

• Energy segment expected to contribute more significantly from Q2 onward, especially from LNG-related businesses.

• ROE target of 12% by FY 2029 remains a top priority, with ongoing review of capital allocation and shareholder returns.