Mitsui Mining & Smelting (5706) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of FY2025 increased by 4.6% year-over-year to ¥364.3B, with operating profit up 2.4% to ¥39.8B and ordinary profit up 2.0% to ¥39.1B, but net income attributable to owners dropped 48.6% to ¥19.0B due to extraordinary losses from the divestiture of Mitsui Kinzoku ACT.

• Comprehensive income decreased 50.2% year-over-year to ¥18,580 million.

• FY2025 full-year forecast expects higher sales and profits versus previous guidance, driven by strong demand in Engineered Materials and improved earnings in Metals from higher prices and a weaker yen.

Financial highlights

• 1H FY2025 net sales: ¥364.3B (+4.6% YoY); operating income: ¥39.8B (+2.4% YoY); ordinary income: ¥39.1B (+2.0% YoY); net income attributable to owners: ¥19.0B (-48.6% YoY).

• Gross profit increased to ¥79,848 million from ¥75,312 million year-over-year.

• Extraordinary losses surged to ¥20,256 million, mainly from a provision for loss on sales of shares of subsidiaries and associates.

• Basic earnings per share fell to ¥333.09 from ¥647.83 year-over-year.

• Total assets as of September 30, 2025, were ¥663,481 million, with an equity-to-asset ratio of 51.8%.

• FY2025 full-year forecast: net sales ¥715.0B (+0.4% YoY), operating income ¥78.0B (+4.4% YoY), ordinary income ¥77.0B (+0.8% YoY), net income ¥43.0B (-33.5% YoY).

• Dividend per share for FY2025 forecasted at ¥210, including a ¥15 commemorative dividend.

Outlook and guidance

• FY2025 sales and profits are expected to exceed previous forecasts, with Engineered Materials demand remaining robust and Metals segment benefiting from favorable market conditions and inventory effects.

• Operating income forecast for FY2025 raised by ¥32.0B to ¥78.0B compared to the previous forecast.

• Annual dividend forecast revised to ¥210 per share.