Sojitz (2768) Q2 2025 earnings summary

Executive summary

• Profit for FY2024 H1 was ¥44.3bn, achieving 40% of the full-year forecast of ¥110.0bn, with solid core operating cash flow progress at 50%.

• Revenue rose 4.0% year-over-year to ¥1,235.2bn, driven by strong overseas trade in Chemicals and acquisitions in Automotive.

• Shareholder returns policy includes a share repurchase of up to ¥25.0bn and a progressive dividend, aiming for a market cap of ¥2 trillion by 2030.

• The company is advancing its Medium-Term Management Plan 2026, focusing on business portfolio transformation and growth investments.

• Profit before tax declined 8.5% to ¥59.0bn due to higher SG&A from new subsidiary acquisitions.

Financial highlights

• Revenue for FY2024 H1 was ¥1,235.2bn, up ¥47.9bn year-over-year; gross profit rose by ¥8.2bn to ¥165.6bn.

• Net income for H1 was ¥44.3bn, down ¥3.6bn year-over-year; core operating cash flow increased by ¥6.8bn to ¥64.5bn.

• Total assets as of Sep 30, 2024, were ¥2,921.8bn, up ¥34.9bn from Mar 31, 2024; equity ratio improved to 32.8%.

• Net interest-bearing debt increased to ¥807.6bn; net DER rose to 0.84 times.

• Basic and diluted EPS for H1 FY2024 were ¥203.93, down from ¥212.06 year-over-year.

Outlook and guidance

• Full-year profit forecast remains at ¥110.0bn, with segment-level revisions: upward for Aerospace, Energy Solutions, and Chemicals; downward for Automotive and Metals.

• Gross profit forecast revised down to ¥350.0bn (from ¥360.0bn), profit before tax to ¥135.0bn (from ¥140.0bn).

• Core operating cash flow for FY2024 is forecast at ¥130.0bn, with 50% achieved in H1.

• Assumes ¥140/USD exchange rate for H2 FY2024.

• Shareholder returns for MTP2026 are set at approx. 30% of core operating cash flow, targeting total returns of ¥130.0bn over three years.