MITSUI E&S (7003) investor relations material

Executive summary

• Achieved three consecutive years of revenue and profit growth, with net sales rising 12.1% year-over-year to ¥353.2 billion, driven by Marine Propulsion and Logistics Systems.

• Operating income surged 62.7% to ¥37.6 billion, with record-high operating profit margin and ordinary income up 61.7% to ¥44.9 billion.

• Profit attributable to owners was ¥38.5 billion, nearly flat year-over-year, declining 1.6% due to lower gains on sales of subsidiaries and affiliates.

• Significant progress in green and digital strategies, including dual-fuel engines, remote-operated cranes, and digital inspection solutions.

• Orders received fell 25.1% year-over-year to ¥315.8 billion, reflecting fewer large-scale orders.

Financial highlights

• Net sales rose to ¥353.2 billion, up ¥38.1 billion year-over-year, with gross profit improving to ¥69.5 billion from ¥51.6 billion.

• Operating income increased to ¥37.6 billion, up ¥14.5 billion year-over-year, with margin rising to 10.7%.

• Ordinary income reached ¥44.9 billion, up ¥17.1 billion year-over-year.

• Shareholders’ equity rose to ¥150.1 billion, equity ratio improved to 46.3%, and net assets rose to ¥233.8 billion.

• Operating cash flow increased to ¥28.4 billion, free cash flow at ¥31.0 billion, and cash and cash equivalents at year-end increased to ¥54.6 billion.

Outlook and guidance

• For FYE Mar. 2027, new orders and net sales are forecast at ¥370.0 billion each, with operating income expected to decline to ¥32.0 billion due to higher fixed costs.

• Profit attributable to owners of parent forecast at ¥30.0 billion, EPS at ¥297.33, and ordinary income at ¥37.0 billion.

• Free cash flow projected to decrease to ¥6.0 billion, reflecting growth investments and increased working capital.

• Dividend forecast for FY2027 is ¥60.00 per share, targeting a 20% payout ratio.

• Business plan focuses on growth investment, shareholder returns, and strengthening the financial base.