ITOCHU (8001) Q3 2025 earnings summary

Executive summary

• Net profit for Q3/FYE 2025 Q1-3 reached ¥676.5 billion, up 11% year-on-year, progressing 77% toward the full-year forecast of ¥880.0 billion, a record high.

• Non-resource sectors achieved all-time high profits, offsetting declines in resource sectors due to lower commodity prices.

• Major extraordinary gains, including the revaluation and consolidation of DESCENTE, significantly boosted results.

• Major growth investments included DESCENTE and CSN Mineração S.A., with net investment cash outflow of ¥538.0 billion in Q1-3.

• Revenues rose 5.6% year-on-year to ¥11,039.4 billion, driven by strong performances in Food, General Products & Realty, ICT & Financial Business, and Machinery.

Financial highlights

• Core profit declined by ¥2 billion year-on-year, with natural resources down ¥23.5 billion to ¥116 billion, while non-resource core profit rose by ¥21 billion (5%) to ¥464 billion.

• Gross trading profit increased by ¥122.6 billion to ¥1,771.0 billion; basic EPS for the period was ¥471.85.

• Operating cash flow was ¥706.2 billion, up from ¥626.3 billion year-on-year; free cash flows were ¥225.5 billion.

• Total assets increased by over ¥1.2 trillion to ¥15,742.6 billion, reflecting DESCENTE consolidation and yen depreciation.

• 229 out of 263 group companies were profitable, with loss-making companies reduced by eight.

Outlook and guidance

• Full-year net profit forecast is ¥880.0 billion, a 9.8%–10% increase, with 77% progress achieved by Q3.

• Sufficient loss buffer of ¥40.0 billion included in the forecast; confident in achieving record profit.

• No major turnaround expected in Metals & Minerals and Energy & Chemicals in Q4.

• ROE target of 16% and net DER maintained below 0.6 times.

• Dividend set at at least ¥200 per share or 30% payout ratio, with share buybacks of approx. ¥150.0 billion.