Sojitz (2768) Q1 2026 earnings summary

Executive summary

• Q1 consolidated profit was JPY 21.1 billion, down JPY 1.9 billion year-over-year, representing 18% of the full-year forecast of JPY 115 billion and aligning with initial plans.

• Revenue declined 4.0% year-over-year to JPY 598.9 billion, mainly due to lower profits in Metals, Mineral Resources & Recycling and Automotive segments.

• Strong results in Energy Solutions & Healthcare and Chemicals offset declines in Metals and Automotive, with limited impact from U.S. tariffs expected to remain within the JPY 5 billion buffer.

• Total comprehensive income dropped sharply by 93.7% year-over-year to JPY 4.3 billion, impacted by financial asset revaluations and FX translation differences.

• Q1 results are considered a solid start, with expectations for a 40%-60% split between first and second half.

Financial highlights

• Q1 revenue was JPY 598.9 billion, down from JPY 623.8 billion year-over-year.

• Gross profit decreased by JPY 2.7 billion year-over-year to JPY 82.2 billion.

• Core operating cash flow reached JPY 32.1 billion, representing 22% of the annual forecast.

• Net cash flow from operating activities was an outflow of JPY 0.7 billion; net free cash flow was an outflow of JPY 55.1 billion.

• Dividends per share set at JPY 165, a 10% increase year-over-year.

Outlook and guidance

• Full-year profit forecast remains unchanged at JPY 115 billion, with Q1 progress at 18%.

• Annual dividend forecast raised to JPY 165 per share.

• Impact of U.S. tariffs is expected to be managed within the JPY 5 billion buffer.

• Second-half earnings are expected to be stronger, especially in LNG and new investments.

• Automotive segment to focus on profitability improvements and monitor U.S. tariff impacts.