Mitsui O.S.K. Lines (9104) Q4 2026 earnings summary

Executive summary

• FY2025 revenue rose 2.8% to ¥1,825.0B; operating profit fell 15.8% to ¥127.0B, ordinary profit 58.1% to ¥175.8B and net income 49.9% to ¥213.2B.

• FY2026 revenue is forecast at ¥2,040.0B, while operating profit is projected at ¥105.0B and net income at ¥170.0B.

• Phase 1 investment totaled ¥2.0T, including ¥1.6T in stable-revenue businesses; stable-revenue assets rose from 50% to 63%.

• Phase 2 focuses on realizing value as Phase 1 investments complete and support operating cash flow and profit.

Financial highlights

• FY2025 ordinary profit was ¥175.8B, ¥4.1B below forecast; pre-tax income was ¥239.0B, ¥0.9B below forecast, while net income was ¥213.2B, ¥13.2B above forecast.

• FY2025 business profit was ¥168.6B, down ¥244.5B year-over-year; operating profit margin decreased to 7.0% from 8.5%.

• FY2026 forecasts: business profit ¥170.0B, ordinary profit ¥145.0B and pre-tax income ¥200.0B, including ¥55.0B in extraordinary income.

• Year-end cash and equivalents were ¥201.4B; operating activities provided ¥450.9B and investing activities used ¥721.6B, mainly for acquisitions.

• Interest-bearing debt rose ¥648.7B to ¥2,495.5B; net assets were ¥2,929.1B and the shareholders' equity ratio was 48.2%.

Outlook and guidance

• FY2026 assumptions include Hormuz transit mostly normalizing by July, Red Sea disruption continuing through year-end, VLSFO at $655/MT and an exchange rate of ¥150.77/$.

• Sixteen long-term-chartered LNG and Ethane carriers are scheduled for delivery in FY2026; Energy results are expected to recover considerably from FY2027.

• FY2026 core operating cash flow is forecast at ¥300.0B, down ¥127.5B year-over-year; stable-revenue business cash flow rises ¥15.7B.

• FY2026 revenue is forecast to rise 11.8%, while ordinary profit and net income are projected to fall 17.5% and 20.3%, respectively.