Sojitz (2768) Q4 2026 earnings summary

Executive summary

• FY2025 net income was JPY 103.6 billion, below forecasts and the Medium-term Management Plan targets, due to one-time losses from structural reforms in automotive and Australian coking coal businesses.

• Revenue rose 9.9% year-over-year to JPY 2,757.4 billion, driven by growth in energy solutions, healthcare, chemicals trading, and defense/marine products.

• Strategic focus remains on building scalable business clusters (Katamari), digital transformation, and human capital enhancement for sustainable growth.

• New investments and co-creation with external partners are enhancing profitability and capital efficiency.

• Long-term vision targets JPY 200 billion profit and 15% ROE.

Financial highlights

• Consolidated profit for FY2025 was JPY 103.6 billion, down JPY 7 billion year-over-year and 90% of the full-year forecast.

• Gross profit increased by 6.0% to JPY 367.5 billion, mainly from newly consolidated subsidiaries.

• SG&A rose by JPY 35.2 billion, mostly due to new subsidiaries.

• Basic EPS was JPY 494.95, down from JPY 513.74 year-over-year.

• Total assets reached JPY 3,648 billion, up JPY 560.7 billion from the previous year.

Outlook and guidance

• FY2026 profit forecast is JPY 130 billion, up JPY 26.4 billion year-over-year, with ROE targeted at 12%.

• Gross profit for FY2026 expected to reach JPY 440 billion.

• Dividend forecast for FY2026 is JPY 180 per share, up JPY 15.

• Management aims to add at least three new business clusters (Katamari) and complete structural reforms.

• Limited impact expected from Middle East geopolitical risks.