Sojitz (2768) Q4 2026 earnings summary

Executive summary

• FY2025 net income was JPY 103.6 billion, below forecasts and Medium-term Management Plan targets, due to one-time losses from structural reforms in automotive and Australian coking coal businesses.

• Revenue rose 9.9% year-over-year to JPY 2,757.4 billion, driven by growth in energy solutions, healthcare, chemicals trading, defense, and marine products.

• Strategic focus on building scalable business clusters (Katamari), digital transformation, and human capital enhancement for sustainable profit.

• Ongoing structural reforms and portfolio reviews, including withdrawal from underperforming businesses and capital alliances to enhance profitability.

• Long-term vision targets JPY 200 billion profit and 15% ROE, with a medium-term plan aiming for ROE >12% and profit >JPY 120 billion (3-year avg).

Financial highlights

• FY2025 consolidated profit was JPY 103.6 billion, down JPY 7 billion year-over-year and 90% of the full-year forecast.

• Gross profit increased by JPY 20.7 billion year-over-year to JPY 367.5 billion, mainly from newly consolidated subsidiaries.

• SG&A rose by JPY 35.2 billion, with 90% attributable to new subsidiaries.

• Total assets reached JPY 3,648 billion, up JPY 560.7 billion from the previous year; total equity attributable to owners rose to JPY 1,090.4 billion.

• Basic EPS was JPY 494.95, down from JPY 513.74 year-over-year; annual dividend per share was JPY 165, up from JPY 150.

Outlook and guidance

• FY2026 profit forecast is JPY 130 billion, up JPY 26.4 billion year-over-year, with ROE targeted at 12%.

• Gross profit for FY2026 expected to reach JPY 440 billion; interim dividend set at JPY 90 per share.

• Focus on adding at least three new business clusters (Katamari) and completing structural reforms.

• Limited impact expected from Middle East geopolitical risks.