Mitsubishi Corporation (8058) Q4 2025 earnings summary

Executive summary

• FY2024 consolidated net income was ¥950.7 billion, with underlying operating cash flow at ¥983.7 billion, meeting all Midterm Corporate Strategy 2024 quantitative targets.

• Revenues for the year ended March 31, 2025, declined 4.9% year-over-year to ¥18,617.6 billion, mainly due to lower sales volumes and Lawson's reclassification as an equity method affiliate.

• FY2025 net income forecast is ¥700 billion, reflecting the absence of major capital recycling gains; underlying operating cash flow expected at ¥900 billion, driven by non-resource businesses.

• Shareholder returns include a ¥1 trillion share repurchase program and a dividend increase to ¥110 per share for FY2025.

• Major portfolio changes included the divestiture of Lawson, Inc. and Princes Limited, and the sale of Australian coal mine interests.

Financial highlights

• FY2024 underlying operating cash flow decreased by ¥194.8 billion year-over-year to ¥983.7 billion, mainly due to lower volumes and market conditions in steelmaking coal and ASEAN automotive.

• Consolidated net income for FY2024 was ¥950.7 billion, nearly flat year-over-year, supported by major capital recycling gains.

• Cash inflows over the Midterm Corporate Strategy 2024 period totaled ¥5.6823 trillion, with ¥3.4469 trillion from operating cash flow and ¥2.2354 trillion from divestitures.

• Adjusted free cash flow reached ¥2.7897 trillion, exceeding the latest forecast.

• Basic EPS increased to ¥236.97 from ¥230.10, reflecting the impact of a three-for-one stock split.

Outlook and guidance

• FY2025 consolidated net income is projected at ¥700 billion, a 26% decrease year-over-year, mainly due to the absence of one-time capital recycling gains.

• Underlying operating cash flow for FY2025 is forecast at ¥900 billion, with continued strength in non-resource businesses offsetting resource sector declines.

• Dividend per share to increase by ¥10 to ¥110 in FY2025, maintaining a progressive policy.

• Corporate Strategy 2027 aims for underlying operating cash flow of ¥1.4 trillion and ROE of 12% by FY2027.

• ROE expected at 7.9% in FY2025, with a target of 12% or higher by FY2027.