Idemitsu Kosan Co. (5019) Q3 2025 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024 rose 7.4% year-over-year to ¥6,876.5B, but operating and equity income excluding inventory impact fell ¥65.6B year-over-year due to lower coal prices, reduced Basic Chemical sales, and weaker market margins.

• Net income attributable to owners was ¥127.5B, down 46.7% year-over-year, but exceeded the May 2024 forecast.

• Comprehensive income decreased 52.2% year-over-year to ¥136.2B.

• Upward revision of FY2024 forecasts driven by robust domestic margins and JPY depreciation, offsetting Basic Chemical, Power, and Renewable Energy downturns, though some forecasts were also revised downward reflecting weaker operating results.

• Announced significant share buybacks totaling over ¥70B and terminated a license agreement with Shell International AG in November 2024.

Financial highlights

• 3Q FY2024 net sales rose 7.4% year-over-year to ¥6,876.5B; operating income dropped 52.7% to ¥145.4B.

• Gross profit for the nine months was ¥507.1B, down from ¥659.3B year-over-year.

• Net income attributable to owners was ¥127.5B, down 46.7% year-over-year.

• Excluding inventory impact, operating income was ¥168.5B (down 28.0% year-over-year).

• Inventory impact swung from +¥73.1B to -¥23.1B, a ¥96.2B negative shift.

Outlook and guidance

• Full-year net sales forecast for FY2024 is ¥9,200.0B, up 5.5% year-over-year.

• Operating income forecast revised up to ¥220.0B (+18.9% vs. previous forecast), but projected to decline 41.1% year-over-year; net income to ¥145.0B (+16.0% vs. previous forecast), down 36.5% year-over-year.

• Net income per share forecast for the year is ¥107.43.

• Petroleum segment forecast raised by ¥53B to ¥155B, Basic Chemicals cut to zero due to margin and volume declines.

• Coal and Oil E&P forecasts increased due to JPY depreciation and higher coal prices.