Mitsui O.S.K. Lines (9104) investor relations material

Executive summary

• FY2025 revenue rose to ¥1,825.0 billion, up 2.8% year-over-year, but net income dropped to ¥213.2 billion, down 49.9% from FY2024.

• Operating profit declined 15.8% to ¥127.0 billion, mainly due to one-off expenses in the Energy Business.

• Ordinary profit fell 58.1% to ¥175.8 billion.

• FY2026 revenue is forecast at ¥2,040.0 billion, with net income expected to decrease to ¥170.0 billion.

• Annual dividend for FY2025 was ¥200 per share; FY2026 is planned at ¥205 per share, with a progressive policy and flexible share buybacks targeting a 40% payout ratio.

Financial highlights

• Operating profit margin declined to 7.0% from 8.5% year-over-year.

• Net assets increased to ¥2,929.1 billion, with a shareholders' equity ratio of 48.2%.

• Cash and cash equivalents at year-end were ¥201.4 billion, up ¥45.5 billion from the prior year.

• Interest-bearing debt rose by ¥648.7 billion to ¥2,495.5 billion.

• FY2026 operating profit is forecast at ¥105.0 billion, down ¥22.0 billion from FY2025.

Outlook and guidance

• FY2026 profit is expected to decline due to deteriorating profitability in car carrier, containership, and chemical tanker businesses, mainly from Middle East disruptions and higher fuel costs.

• Navigation around the Strait of Hormuz is assumed to normalize by July 2026.

• Segment outlooks anticipate profit growth in Dry Bulk and Wellbeing & Lifestyle, but declines in Product Transport and Associated Businesses.

• New Chemical Logistics Business segment to be established in FY2026.

• Dividend policy targets a progressive increase, with a total payout ratio of approximately 40%.