Sojitz (2768) Q1 2027 earnings summary

Executive summary

• Q1 profit reached JPY 30.2 billion, up 43% year-on-year, achieving 23% of the full-year forecast of JPY 130 billion, with strong contributions from Energy Solutions, Chemicals, and Metals segments.

• Revenue rose 39.3% year-on-year to JPY 834.2 billion, driven by Energy Solutions & Public Infrastructure and Chemicals.

• Gross profit increased by JPY 29.1 billion to JPY 111.3 billion, reflecting higher trading volumes and improved market prices.

• Core operating cash flow improved to JPY 40.0 billion, up JPY 7.9 billion year-on-year.

• Dividend per share increased 9% year-on-year to JPY 180, reflecting a progressive dividend policy.

Financial highlights

• Revenue: JPY 834.2 billion (+JPY 235.3 billion YoY); Gross profit: JPY 111.3 billion (+JPY 29.1 billion YoY).

• Profit for the period: JPY 30.2 billion (+JPY 9.1 billion YoY); Core earnings: JPY 40.1 billion (+JPY 17.2 billion YoY).

• Basic and diluted EPS for the quarter were JPY 144.72, up from JPY 100.30 year-on-year.

• Total assets increased to JPY 3,730.4 billion; total equity attributable to owners reached JPY 1,144.7 billion.

• Net interest-bearing debt rose to JPY 1,171.1 billion; net DER: 1.02x.

Outlook and guidance

• Full-year profit forecast maintained at JPY 130 billion, with basic EPS projected at JPY 622.55.

• Dividend forecast for FY26/FY2027 is JPY 180 per share, a 9% increase year-on-year.

• Forecast assumes a yen/dollar rate of JPY 150/US$.

• Continued focus on structural reforms, asset replacement, and growth investments, especially in North and Latin America, Australia, and digital-related businesses.

• Automotive and Consumer Industry & Agriculture Business segments are underperforming but expected to recover in the second half.