Mitsui O.S.K. Lines (9104) Q2 2027 earnings summary

Executive summary

• Favorable shipping markets and stronger stable-revenue businesses lifted FY2026 PBT guidance to ¥345.0bn, ¥145.0bn above the initial plan.

• Shareholder returns target a ~40% total payout ratio; FY2026 returns are planned at ¥70.0bn in dividends and ¥50.0bn in buybacks. A 3-for-1 split takes effect Jan. 1, 2027.

Financial highlights

• H1 FY2026 revenue was ¥1,275.0bn, operating profit ¥72.7bn, ordinary profit ¥163.6bn and parent-attributable profit ¥179.3bn; year-on-year growth was 46.6%, 1.2%, 42.8% and 54.3%, respectively.

• H1 results exceeded prior forecasts by ¥40.0bn in revenue, ¥7.6bn in operating profit, ¥37.6bn in ordinary profit, ¥35.2bn in PBT and ¥42.3bn in net income.

• Equity-method affiliate earnings reached ¥97.3bn, including ¥64.1bn from OCEAN NETWORK EXPRESS; net income was ¥180.6bn and reported EPS ¥521.76.

• H1 average exchange rate was ¥160.12/US$ and average all-grade bunker price was $865/MT.

Outlook and guidance

• FY2026 forecast: revenue ¥2,370.0bn, operating profit ¥151.0bn, ordinary profit ¥295.0bn, PBT ¥345.0bn and net income ¥300.0bn; versus the prior outlook, revenue rose ¥140bn, operating profit ¥16bn, ordinary profit ¥70bn and parent profit ¥60bn.

• Full-year forecast assumes Strait of Hormuz, Persian Gulf and Red Sea navigation remains unavailable; FX is ¥157.58/US$, HSFO $716/MT and VLSFO $832/MT.

• Annual dividend forecast is ¥205/share before the split: ¥100 interim and ¥105 year-end, equivalent to ¥35/share post-split at year-end.

• FY2026 core operating cash flow forecast rose to ¥380.0bn from ¥360.0bn; market-driven and hybrid businesses are forecast to contribute ¥51.0bn and ¥239.0bn.