Mitsui Mining & Smelting (5706) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 net sales were ¥169.0B, down 0.5% year-over-year, with operating income at ¥11.4B, down 51.3%, and net income attributable to owners at -¥6.0B, reversing a profit from the prior year.

• Comprehensive income was negative ¥7.3B, compared to positive ¥31.3B in the prior year.

• Extraordinary losses from the divestiture of Mitsui Kinzoku ACT led to a net income decrease year-over-year.

Financial highlights

• Gross profit margin in Q1 FY2025 was 18.0% (¥30.4B gross profit on ¥169.0B sales), down from ¥41.8B year-over-year.

• Extraordinary losses included a ¥19.7B provision for losses on sales of shares of subsidiaries and associates.

• Full-year FY2025 net sales forecast is ¥665.0B, operating income ¥46.0B, ordinary income ¥44.0B, and net income attributable to owners ¥17.0B.

• Dividend per share is forecast at ¥195, up from ¥180, including a commemorative dividend.

• Total assets declined to ¥638.9B as of June 30, 2025, from ¥657.9B at March 31, 2025.

Outlook and guidance

• FY2025 sales and profits are expected to increase compared to previous forecasts, driven by higher sales volumes in MicroThin, Electrolytic Copper Foil VSP, and exhaust gas purification catalysts.

• Operating income forecast for FY2025 was raised by ¥4.0B to ¥46.0B, with first and second half increases of ¥1.5B and ¥2.5B, respectively.

• Full-year net sales forecast for FY ending March 31, 2026, is ¥665.0B, down 6.6% year-over-year.

• Profit attributable to owners of parent is forecast at ¥17.0B, down 73.7% year-over-year.

• Basic earnings per share for the full year is expected to be ¥297.30.