Sumitomo Metal Mining (5713) Q1 2027 earnings summary

Executive summary

• Achieved record-high first-quarter profit for FY2026 Q1, driven by higher metal prices, yen depreciation, and robust demand for Advanced Materials in data-center-related electronics, despite cost increases from the Middle East situation.

• Net sales for Q1 FY2026 rose 42.3% year-over-year to ¥540,110 million, with profit before tax up 211.4% to ¥118,040 million and profit attributable to owners of parent up 220.5% to ¥87,935 million.

• Comprehensive income for the quarter reached ¥130,550 million, a significant turnaround from a loss of ¥40,052 million in the prior year.

• Full-year profit before taxes forecast revised upward to ¥324.0bn, the second-highest on record.

• Repurchased ¥20.0bn in shares, scheduled for cancellation by September 30, 2026.

Financial highlights

• Q1 net sales: ¥540.1bn (+42.3% YoY); gross profit: ¥109.6bn (+213.1% YoY); profit before tax: ¥118.0bn (+211.3% YoY); net income: ¥87.9bn (+220.8% YoY).

• Basic earnings per share for Q1 FY2026 was ¥326.62, up from ¥100.27 in Q1 FY2025.

• Total assets as of June 30, 2026, were ¥3,627,234 million, with equity attributable to owners of parent at ¥2,129,916 million and an equity ratio of 58.7%.

• Full-year forecast: net sales ¥2,065bn (+9.7% YoY), profit before tax ¥324.0bn (+41.5% YoY), net income ¥216.0bn (+55.4% YoY).

• Profit excluding period factors revised up by ¥70.0bn to ¥310.0–300.0bn.

Outlook and guidance

• Full-year FY2027 net sales are forecast at ¥2,065,000 million, up 18.6% year-over-year.

• Profit attributable to owners of parent is projected at ¥216,000 million, up 22.5% year-over-year, with basic EPS forecast at ¥803.95.

• Metal prices (copper, gold, nickel) and yen depreciation expected to remain favorable.

• Cost increases from the Middle East situation expected to persist, especially for operating materials.

• Demand for Advanced Materials in electronics projected to stay robust.