Sumitomo Electric Industries (5802) investor relations material

Executive summary

• Net sales reached ¥5,110.2 billion, up ¥430.4 billion or 9.2% year-over-year, with record-high operating profit of ¥418.2 billion and OP rate of 8.2% for FY2025.

• Profit attributable to owners rose to ¥369.5 billion, a ¥175.7 billion or 90.7% increase from the previous year.

• Comprehensive income grew to ¥596,797 million, up 235.2% year-over-year.

• All major business segments posted sales and operating profit growth, with notable gains in Infocommunications and Environment & Energy.

Financial highlights

• Operating profit increased by ¥97.5 billion or 30.4% year-over-year, driven by higher sales volume and cost structure improvements.

• Ordinary income rose to ¥431.3 billion, up ¥121.8 billion or 39.3% from FY2024.

• Free cash flow improved to ¥250.3 billion, up ¥72.0 billion year-over-year.

• Gross profit increased to ¥1,034,031 million from ¥880,126 million year-over-year.

• Total assets grew by ¥382.9 billion to ¥4,824.5 billion, and shareholders' equity increased by ¥261.6 billion.

Outlook and guidance

• FY2026 net sales forecasted at ¥5,300.0 billion and operating profit at ¥425.0 billion, with continued growth expected in all segments except Environment & Energy due to the exclusion of Sumitomo Densetsu.

• Profit attributable to owners of parent is expected to decrease 13.4% to ¥320,000 million in FY2027.

• ROIC and ROE targets set at 15% and 13% or more, respectively.

• Guidance does not factor in potential downside risks from Middle East tensions.