Mitsubishi Corporation (8058) Q1 2025 earnings summary

Executive summary

• Consolidated net income for Q1 FY2024 was ¥354.4 billion, up ¥36.7 billion year-over-year, driven by gains from the sale of two metallurgical coal mines and yen depreciation, representing 37% progress toward full-year guidance.

• Underlying operating cash flow reached ¥313.6 billion, with 33% progress toward the annual projection and solid asset replacement and shareholder returns.

• Profit attributable to owners of the Parent rose 11.5% year-over-year to ¥354.4 billion, with EPS at ¥86.93 (basic).

• Comprehensive income increased 29.9% year-over-year to ¥931.6 billion, driven by gains on other investments and foreign exchange.

Financial highlights

• Cash inflow for the period totaled ¥653.5 billion, including ¥313.6 billion from operations and ¥339.9 billion from divestitures.

• Adjusted free cash flow was ¥457.0 billion after ¥196.5 billion in investment outflows.

• Cumulative underlying operating cash flow under the Midterm Corporate Strategy 2024 reached ¥2.8 trillion, with ¥1.8 trillion recovered from divestitures.

• Dividend per share forecast for FY2024/FY2025 is ¥100.

• Equity attributable to owners of the Parent rose to ¥9,560.4 billion, with a 39.2% equity ratio.

Outlook and guidance

• FY2024 full-year consolidated net income guidance remains at ¥950.0 billion, with 37% achieved in Q1; FY2025 profit is forecast at ¥950 billion, a 1.5% decrease year-over-year.

• Management will reassess full-year guidance due to uncertainties in commodity markets and the broader business environment.

• Double-digit ROE target (10.4%) and high single-A credit rating maintained.