Idemitsu Kosan Co. (5019) Q4 2025 earnings summary

Executive summary

• Operating and equity income excluding inventory impact fell ¥95.9B year-over-year, mainly from lower coal prices, reduced Basic Chemical sales, and weaker market margins.

• Net income attributable to owners dropped 54.5% to ¥104.1B, reflecting higher impairment losses, lower segment profits, and a ¥12.9B provision for doubtful accounts at NSRP.

• Net sales rose 5.4% year-over-year to ¥9,190.2B, driven by yen depreciation despite lower crude oil prices.

• Comprehensive income decreased 61.5% to ¥108.3B.

• FY2024 segment income excluding inventory impact matched forecasts, but net income missed by ¥20.2B.

Financial highlights

• FY2024 net sales rose 5.4% to ¥9,190.2B; operating income dropped 53.2% to ¥162.2B.

• Net income attributable to owners fell 54.5% year-over-year to ¥104.1B.

• Equity income increased 35.2% to ¥22.6B.

• Gross profit declined to ¥689.4B from ¥847.1B year-over-year.

• Operating cash flow for FY2024 at ¥476.7B; investing cash flow at -¥118.5B; financing cash flow at -¥343.5B.

Outlook and guidance

• FY2025 operating and equity income (excl. inventory) forecast to decline ¥67.7B year-over-year to ¥147.0B.

• Net income attributable to owners expected at ¥50.0B, down ¥54.1B year-over-year.

• Fiscal year ending March 31, 2026 forecast: net sales ¥7,900.0B (down 14.0%), operating income ¥37.0B (down 77.2%), net income ¥50.0B (down 51.9%).

• Dividend maintained at ¥36/share; no change to shareholder return policy.

• FY2025 ROE estimated at ~7%, below target, despite extraordinary income from asset sales.