Mitsui & Co (8031) Q2 2025 earnings summary

Executive summary

• Core operating cash flow (COCF) reached 54% and profit 46% of the full-year plan for H1 FY March 2025.

• Revenue rose 15% YoY to ¥7,331.8bn, led by Energy and Chemicals.

• Profit attributable to owners fell 9.7% to ¥411.8bn, mainly due to higher personnel expenses and lower gains on securities.

• Full-year profit forecast was revised upward to ¥920bn, driven by strong Energy, Machinery & Infrastructure, and Innovation & Corporate Development.

• Additional share repurchase of ¥200bn announced, totaling ¥400bn for the year.

Financial highlights

• H1 FY March 2025 COCF: ¥538.1bn (up ¥63.0bn YoY); profit: ¥411.8bn (down ¥44.5bn YoY).

• Gross profit for H1: ¥612.4bn (up ¥4.0bn YoY), with Chemicals and Energy up, Machinery & Infrastructure and Mineral & Metal Resources down.

• Free cash flow surged to ¥554.6bn, supported by higher operating cash flow and lower investing outflows.

• Dividend per share maintained at ¥100 (¥50 interim, ¥50 year-end), with a minimum of ¥100/share through FY2026.

• Net D/E ratio improved to 0.42x as of end-September 2024.

Outlook and guidance

• Upward revision of full-year profit forecast to ¥920bn, with main growth drivers in LNG, mobility, healthcare, and protein.

• Shareholder returns over the current medium-term plan expected to exceed 45% of core operating cash flow.

• Revised segment forecasts: Energy and Innovation & Corporate Development raised, Mineral & Metal Resources and Lifestyle lowered.

• Continued asset reconfiguration and focus on ROIC, with further enhancement of base profit and risk management amid geopolitical uncertainties.

• Sizable management allocation maintained post additional shareholder returns, with potential for further allocation.