Mitsui Mining & Smelting (5706) investor relations material

Executive summary

• Sales and profits increased year-over-year for Q1-3 FY2025, driven by higher sales volume in Engineered Materials and rising precious metal prices in catalysts, but net income declined due to extraordinary losses from the divestiture of Mitsui Kinzoku ACT.

• Net sales for the nine months ended December 31, 2025, rose 3.1% year-over-year to ¥542,207 million, with operating profit up 27.6% to ¥71,723 million and ordinary profit up 26.1% to ¥74,514 million.

• Profit attributable to owners of parent decreased 5.9% year-over-year to ¥49,053 million, while comprehensive income fell 19.3% to ¥44,818 million.

• FY2025 is forecasted to achieve record highs in net sales, operating profit, ordinary profit, and net income, supported by strong copper foil demand for AI servers, higher metal prices, and favorable currency effects.

Financial highlights

• Q1-3 FY2025 net sales: ¥542.2B (+3.1% YoY); operating income: ¥71.7B (+27.6% YoY); ordinary income: ¥74.5B (+26.1% YoY); net income attributable to owners: ¥49.1B (-5.9% YoY).

• Full-year FY2025 forecast: net sales ¥750.0B, operating income ¥117.0B, ordinary income ¥120.0B, net income ¥77.0B; basic EPS forecast ¥1,346.19.

• Dividend per share forecast for FY2025: ¥240, including a special/commemorative dividend.

• Gross profit increased to ¥128,343 million from ¥111,971 million year-over-year.

• Equity-to-asset ratio improved to 56.6% from 50.4% at the previous fiscal year-end.

Outlook and guidance

• Copper foil business expected to benefit from robust demand in high-end servers.

• Metal segment earnings to improve due to higher prices, weaker yen, and inventory effects.

• Operating income forecast for FY2025 raised by ¥39.0B to ¥117.0B compared to previous guidance.

• Full-year net sales forecast for FY ending March 31, 2026, is ¥750,000 million, up 5.3% year-over-year.

• Full-year basic earnings per share forecast is ¥1,346.19.