Idemitsu Kosan Co. (5019) Q3 2026 earnings summary

Executive summary

• Net sales for 3Q FY2025 were ¥5,944.6 billion, down 13.6% year-over-year, with operating income of ¥36.7 billion, down 70.2%, and net income attributable to owners at ¥52.6 billion, down 58.7%.

• Operating and net income declined due to major planned maintenance, lower coal prices, and inventory valuation losses.

• Despite declines, full-year forecasts remain unchanged, with increased sales volume anticipated in Q4.

• Strategic initiatives include consolidation of Fuji Oil as a subsidiary, new chemical recycling facilities, and major business integrations in chemicals.

• Comprehensive income for the period was ¥87.9 billion, a 35.5% decrease year-over-year.

Financial highlights

• Gross profit for the nine months was ¥431.4 billion, down from ¥507.1 billion year-over-year.

• EPS for the period was ¥42.93, compared to ¥94.43 in the prior year.

• Net sales for 3Q FY2025 were ¥5,944.6 billion, down 13.6% year-over-year.

• Operating income (excluding inventory impact) fell 72.3% to ¥40.3 billion.

• Net income attributable to owners (excluding inventory impact) dropped 26.3% to ¥105.7 billion.

Outlook and guidance

• Full-year forecast for FY2026 remains unchanged: net sales ¥7,950.0 billion, operating income ¥68.0 billion, net income attributable to owners ¥75.0 billion, and EPS ¥61.24.

• Assumptions include Dubai crude at $66.7/bbl, Australian coal at $104.6/ton, and an exchange rate of ¥145.5/USD.

• Sensitivity analysis shows significant earnings impact from fluctuations in crude oil prices and exchange rates.