Sojitz (2768) Q2 2026 earnings summary

Executive summary

• Consolidated profit for the first half was JPY 45.3 billion, representing 39% of the unchanged full-year forecast of JPY 115 billion, with strong gains in Energy Solutions & Healthcare and Aerospace, but weakness in Metals and Automotive.

• Revenue for the first half rose 0.4% year-over-year to JPY 1,240.3 billion, driven by growth in Energy Solutions & Healthcare, offsetting declines in Metals, Mineral Resources & Recycling.

• Gross profit increased to JPY 171.6 billion, up JPY 6 billion year-on-year, but profit before tax fell 8.9% due to higher SG&A expenses.

• Management is actively addressing underperforming businesses with structural reforms and swift decision-making.

• Strategic focus on expanding new investments, enhancing existing businesses, and portfolio transformation toward sustainable growth.

Financial highlights

• Basic earnings per share increased to JPY 216.45 from JPY 203.93 year-over-year.

• Total assets as of September 30, 2025, were JPY 3,249.4 billion, up JPY 162.1 billion from March 31, 2025.

• Net interest-bearing debt rose to JPY 968.2 billion, with a net DER of 0.99.

• Free cash flow was a net outflow of JPY 44.3 billion, reflecting active investment activity.

• Cash and cash equivalents at period end were JPY 186.6 billion.

Outlook and guidance

• Full-year consolidated profit forecast remains at JPY 115 billion, with segment forecasts revised based on current performance.

• Core operating cash flow forecast for the year is JPY 140 billion, with a cumulative MTP target of JPY 450 billion unchanged.

• Annual dividend for the year ending March 2026 is set at JPY 165 per share, a 10% increase, with ongoing stock repurchases.

• Over JPY 100 billion in new investments planned for the second half, and over JPY 300 billion for the next fiscal year.

• The revised forecast assumes a yen/dollar rate of JPY 145/US$.