Sumitomo Corporation (8053) Q4 2026 earnings summary

Executive summary

• FY2025 profit attributable to owners reached a record ¥600.3 billion, up 6.8% year-over-year, with ROE at 12.9%.

• Revenues for the year ended March 31, 2026, rose 0.6% year-over-year to ¥7,337.3 billion.

• Comprehensive income surged 119.6% year-over-year to ¥1,029.6 billion, driven by strong other comprehensive income.

• FY2026 profit is forecast at ¥630.0 billion, with ROE around 13%, incorporating a ¥30.0 billion loss buffer for uncertainties, especially in the Middle East.

• Annual dividends increased to ¥150/share for FY2025 and forecasted at ¥160/share for FY2026 (pre-split), with a 4-for-1 share split planned for July 2026.

Financial highlights

• Underlying profit for FY2025 was ¥528.0 billion, with asset replacement and extraordinary profits/losses totaling ¥72.0 billion.

• Gross profit increased by ¥64.9 billion year-over-year, reaching ¥1,509.7 billion.

• Operating cash flow rose to ¥813.5 billion from ¥612.3 billion year-over-year.

• Total assets rose to ¥13,638.3 billion as of March 2026, up ¥2,007.2 billion year-over-year.

• Net D/E ratio increased to 0.68 as of March 2026, reflecting large-scale investments.

Outlook and guidance

• FY2026 profit guidance includes a ¥30.0 billion loss buffer for geopolitical risks, especially in the Middle East.

• Growth expected in mineral resources from higher prices and volumes, and steady gains in non-mineral resources from strategic investments.

• Continued focus on asset replacement, digital transformation, and growth in leasing, real estate, and energy solutions.

• Shareholder return policy maintains a total payout ratio of 40% or higher and progressive dividends.