Mitsui Mining & Smelting (5706) investor relations material

Executive summary

• FY2025 saw record highs in net sales, operating profit, ordinary profit, and net profit, driven by strong demand in high-end server markets and favorable metal prices and forex effects.

• Net sales rose 6.5% year-over-year to ¥758,532 million for the fiscal year ended March 31, 2026, with operating profit up 75.1% to ¥130,912 million and ordinary profit up 78.9% to ¥136,736 million.

• Profit attributable to owners of parent increased 41.1% year-over-year to ¥91,263 million, and comprehensive income reached ¥94,768 million, up 46.5%.

• Basic earnings per share grew to ¥1,595.45 from ¥1,130.95 in the prior year.

• FY2026 is forecast to see continued strength in Engineered Materials but a decline in profits due to the absence of prior year’s favorable inventory and forex factors, and scheduled maintenance in Metals.

Financial highlights

• FY2025 net sales: ¥758.5B (+6.5% YoY); operating income: ¥130.9B (+75.1% YoY); ordinary income: ¥136.7B (+79.0% YoY); net income: ¥91.3B (+41.1% YoY).

• Gross profit increased to ¥202,647 million from ¥150,237 million year-over-year.

• Total assets rose to ¥697,481 million, and net assets increased to ¥420,910 million, with an equity-to-asset ratio of 59.1%.

• Dividend per share for FY2025: ¥245 (including ¥15 commemorative dividend); FY2026 forecast: ¥280.

• FY2026 forecast: net sales ¥830.0B (+9.4% YoY); operating income ¥91.0B (-30.5% YoY); ordinary income ¥93.0B (-32.0% YoY); net income ¥75.0B (-17.8% YoY).

Outlook and guidance

• Engineered Materials segment expected to remain strong in FY2026, especially VSP™ and MicroThin™ products.

• FY2027 forecast: net sales of ¥830,000 million (+9.4% YoY), operating profit of ¥91,000 million (-30.5%), and profit attributable to owners of parent of ¥75,000 million (-17.8%).

• Metals segment profits to decline due to loss of favorable inventory, forex, and metal price effects, and large-scale maintenance.

• Excluding inventory and transient factors, FY2026 operating profit is expected to decline by ¥12.4B YoY.