Idemitsu Kosan Co. (5019) Q2 2026 earnings summary

Executive summary

• Operating and net income for 2Q FY2025 declined year-over-year due to weaker chemical and coal markets, lower crude oil prices, and inventory valuation losses, but the petroleum segment outperformed last year on strong domestic margins.

• Net sales for the six months ended September 30, 2025, were ¥3,805.7 billion, down 15.5% year-over-year.

• Net income attributable to owners was ¥36.1 billion, a 63.7% decrease year-over-year.

• Progress toward full-year earnings forecasts is at 60% for operating + equity income and 65% for net income.

• Full-year forecasts for FY2025 have been revised upward by ¥28 billion for operating + equity income and ¥25 billion for net income, reflecting stronger-than-expected petroleum performance.

Financial highlights

• 2Q FY2025 net sales were ¥3,805.7 billion, down 15.5% year-over-year; operating income was ¥25.8 billion, down 73.4%.

• Net income attributable to owners was ¥36.1 billion, a 63.7% decrease year-over-year.

• Excluding inventory impact, operating + equity income was ¥88.4 billion (down 22.4%) and net income was ¥77.4 billion (down 22.5%).

• Gross profit for the period was ¥284.0 billion, down from ¥345.9 billion year-over-year.

• ROE on net income excluding inventory effects is forecast at 8.5% for FY2025.

Outlook and guidance

• FY2025 full-year net sales forecast revised to ¥7,950.0 billion; net income forecast raised to ¥75.0 billion.

• Operating + equity income (excluding inventory impact) forecast increased to ¥175.0 billion.

• Operating income forecast at ¥68.0 billion (+58.1%), ordinary income at ¥75.0 billion (+27.9%), and net income attributable to owners at ¥85.0 billion (+60.4%).

• Net income per share forecasted at ¥61.24; dividend forecast maintained at ¥36.00 per share for the full year.

• Investment forecast for FY2025 reduced by ¥113 billion due to postponed M&As and cautious decarbonization investments.