Sojitz (2768) Q3 2025 earnings summary

Executive summary

• Consolidated profit for the period rose to JPY 76.1 billion, achieving 69% of the full-year forecast of JPY 110 billion by Q3, with strong core operating cash flow and profit generation.

• Revenue increased by JPY 93.2 billion year-over-year to JPY 1,881.3 billion, driven by growth in Automotive, Retail & Consumer Service, Chemicals, and Energy Solutions & Healthcare.

• Gross profit increased by JPY 18.3 billion year-over-year to JPY 260.6 billion, reaching 74% of the full-year forecast.

• ROE improved to 11.6% and ROA to 3.7% as of December 31, 2024.

• Interim and year-end dividends set at JPY 75 each, totaling JPY 150 for the year.

Financial highlights

• Gross profit growth driven by new consolidated companies in Automotive, Energy Solutions, Healthcare, and Retail & Consumer Service.

• SG&A rose by JPY 22.9 billion year-on-year, mainly due to new subsidiaries and weaker yen.

• Core operating cash flow for Q1-3 was JPY 97.3 billion, up JPY 13.1 billion year-on-year, 75% of the full-year forecast.

• Total assets increased by JPY 190 billion to JPY 3,076.8 billion, mainly from working capital and new subsidiaries.

• Net interest-bearing debt increased by JPY 122.6 billion to JPY 819.9 billion; net DER rose to 0.86x.

Outlook and guidance

• Steady progress toward full-year targets, with most segments expected to meet or exceed forecasts.

• Full-year profit forecast maintained at JPY 110 billion, with 69% progress as of Q3.

• Core operating cash flow forecast for FY24 is JPY 130 billion, with 75% achieved by Q3.

• Automotive segment expects recovery in North America and profitability in Australia by Q4.

• Chemicals and Consumer Industry & Agriculture likely to exceed or meet forecasts.