ENEOS (5020) investor relations material

Executive summary

• Operating profit for FY2026 Q1 surged year-over-year, primarily due to recovery in refinery operations and robust overseas market conditions, especially in Petroleum Products.

• Revenue for 1Q FY2026 rose 18.7% year-over-year to ¥3,407.8 billion, with operating profit surging to ¥482.6 billion from ¥50.3 billion in 1Q FY2025.

• Profit attributable to owners of the parent reached ¥415.0 billion, reversing a prior-year loss.

• The group advanced its portfolio restructuring, including a major U.S. C4 materials business acquisition, and continued to streamline group companies.

• Basic profit per share was ¥154.64, compared to a loss per share of ¥5.40 in 1Q FY2025.

Financial highlights

• Revenue rose to ¥3,407.8 bn (+19%), operating profit to ¥482.6 bn (+859%), and profit before tax to ¥477.7 bn (+976%) compared to FY2025 Q1.

• Gross profit increased to ¥645.4 billion from ¥187.3 billion year-over-year.

• Equity attributable to owners of the parent rose to ¥3,747.2 billion, with an equity ratio of 38.9%.

• Net cash from operating activities decreased to ¥58.6 billion from ¥182.4 billion year-over-year.

• Cash and cash equivalents at period end were ¥470.1 billion, down from ¥877.3 billion at the previous year-end.

Outlook and guidance

• Full-year outlook remains unchanged despite Q1 outperformance, as Middle East disruptions create ongoing uncertainty.

• FY2026 revenue forecast is ¥12,850 billion, with operating profit projected at ¥610 billion (up 30.7% year-over-year).

• Profit attributable to owners of the parent is forecast at ¥415 billion, with basic profit per share of ¥155.72.

• Operating profit excluding inventory valuation factors is forecast at ¥590 billion, up 24.4% year-over-year.

• Favorable overseas margins may persist, but the net earnings impact from crude procurement and exports is not yet reliably quantifiable.