Sumitomo Metal Mining (5713) Q4 2025 earnings summary

Executive summary

• FY2024 net sales rose to JPY 1,593.3B, up 10.2% year-over-year, but profit attributable to owners fell 71.9% to JPY 16.5B due to large impairment losses, mainly in battery materials and nickel operations.

• Profit before tax dropped to JPY 31.4B from JPY 95.8B, with basic earnings per share down to JPY 59.99 from JPY 213.28.

• Comprehensive income decreased 49.5% year-over-year to JPY 105.6B.

• Excluding temporary factors, profit before tax was approximately JPY 110-120B, indicating underlying business stability.

Financial highlights

• Gross profit for FY2024 was JPY 58.5B, down from JPY 166.1B year-over-year.

• Major impairment losses totaled JPY 112.7B, primarily in battery materials and nickel operations.

• Net cash provided by operating activities was JPY 149.6B, while investing activities used JPY 138.9B.

• Dividend per share for FY2024 was JPY 104, with a payout ratio of 173.4%.

• Equity attributable to owners increased to JPY 1,845.7B, with a ratio of 60.1%.

Outlook and guidance

• FY2025/2026 forecast: net sales of JPY 1,538B, profit before tax of JPY 100B (up 218.6%), and net profit of JPY 58B (up 251.8%).

• Gross profit forecast at JPY 132B, with basic earnings per share projected at JPY 210.89.

• Dividend per share is projected to increase to JPY 131, with a payout ratio of 62.1%.

• No major impairment losses are anticipated for FY2025.