Sumitomo Metal Mining (5713) Q2 2026 earnings summary

Executive summary

• First-half profit increased, driven by higher copper and gold prices, ramp-up at Quebrada Blanca and Cote mines, and lower unit costs at major mines, while net sales for the six months ended September 30, 2025, were ¥783,361 million, down 2.1% year-over-year.

• Profit before tax rose 6.6% to ¥77,815 million, and profit attributable to owners of parent increased 16.0% to ¥53,940 million year-over-year.

• Basic earnings per share for the period were ¥198.12, up from ¥169.25 in the prior year.

• Share repurchase of up to ¥15.0 billion completed; focus remains on balancing growth investments and shareholder returns.

• Operations at Quebrada Blanca are being stabilized as a long-term profit base; battery materials business is undergoing product replacement and cost improvements.

Financial highlights

• FY2025 1H net sales: ¥7,834 hundred million (down 2.1% year-over-year); net income: ¥539 hundred million (up 16.0% year-over-year).

• Gross profit rose 5.8% year-over-year to ¥873 hundred million; profit before tax up 6.6% to ¥778 hundred million.

• Full-year net sales forecast revised up to ¥15,540 hundred million; net income forecast raised to ¥740 hundred million.

• Total assets as of September 30, 2025, were ¥3,024,322 million, with total equity at ¥1,995,730 million.

• Annual dividend per share maintained at ¥131; total return ratio at 68%.

Outlook and guidance

• Full-year profit before tax forecast increased by ¥190 hundred million to ¥1,210 hundred million, mainly due to higher copper and gold prices.

• Full-year net sales forecast is ¥1,554,000 million, a 2.5% decrease year-over-year.

• Profit attributable to owners of parent is forecast at ¥74,000 million, up 348.8% year-over-year; basic EPS for the full year expected to be ¥272.66.

• Sensitivity: every $100/t change in copper price impacts PBT by ¥3.3 billion; every $10/oz change in gold price impacts PBT by ¥0.3 billion.

• Battery materials segment expects lower sales but higher profit due to product mix and cost improvements.