Mitsui & Co (8031) Q2 2026 earnings summary

Executive summary

• Achieved 55% progress toward full-year COCF and profit targets in H1 FY March 2026, prompting upward revisions to full-year forecasts for both metrics.

• Profit attributable to owners rose 2.9% to ¥423.7 billion, with comprehensive income surging 165.8% to ¥633.7 billion, driven by financial asset gains and FX adjustments.

• Announced a ¥200 billion share repurchase to be completed by March 2026 and maintained a progressive dividend policy, with DPS set at ¥115, up ¥15 year-on-year.

• Solid base profit growth supported by middle game initiatives and carefully selected investments for long-term earnings.

• A 2-for-1 share split was conducted on July 1, 2024, with all per-share data adjusted accordingly.

Financial highlights

• H1 FY March 2026 COCF was ¥448.5 billion, down ¥89.6 billion year-on-year, mainly due to the absence of large LNG dividends.

• H1 profit was ¥423.7 billion, up ¥11.9 billion year-on-year, with strong contributions from Energy and Chemicals segments.

• Gross profit for H1 was ¥618.7 billion, up ¥6.3 billion year-on-year, while SG&A expenses decreased by ¥26.7 billion.

• Net interest-bearing debt at ¥3,340.9 billion; net DER at 0.42x; shareholder equity at ¥8,026.2 billion.

• Cash inflows in the first half totaled ¥562 billion; outflows were ¥498 billion.

Outlook and guidance

• Full-year COCF forecast revised up to ¥900 billion and profit to ¥820 billion, with EPS expected at ¥285.24.

• Dividend per share for FY March 2026 is set at ¥115, with a ¥200 billion share repurchase to be completed by March 2026.

• Shareholder returns ratio expected to exceed 54% of COCF during the MTMP.

• Management aims for further upside in H2, with continued focus on risk management amid geopolitical and financial uncertainties.

• Key assumptions include a USD/JPY rate of 145.54 and a consolidated oil price of $78/bbl.