Sojitz (2768) Q4 2025 earnings summary

Executive summary

• FY2024 profit reached JPY 110.6 billion, exceeding forecasts and prior year, with ROE at 11.7% and strong growth in energy solutions, healthcare, chemicals, defense, fertilizer, and retail.

• Business portfolio transformation focused on non-resource sectors improved resilience and cash generation, with non-resource businesses now accounting for 85% of profit.

• Strategic investments in energy-saving, infrastructure, marine products, and Vietnamese retail businesses drove growth.

• Segment reorganization effective April 2024, introducing new classifications for Aerospace, Transportation & Infrastructure, and Energy Solutions & Healthcare.

• MTP2026 targets include profit for the year of JPY 120 billion (3-year avg.), ROE >12%, and Next Stage goals of JPY 200 billion profit and 15% ROE.

Financial highlights

• Revenue for FY2024 was JPY 2,509.7 billion, up JPY 95.1 billion year-on-year, with gross profit at JPY 346.8 billion (+JPY 20.8 billion YoY).

• Consolidated profit for FY2024 was JPY 110.6 billion, up JPY 9.8 billion year-on-year, exceeding the JPY 110 billion forecast.

• Core operating cash flow reached JPY 135.2 billion (+JPY 26.0 billion YoY); basic EPS was JPY 514 per share (+63 yen YoY).

• Dividends per share increased to JPY 150 (+JPY 15 YoY); share buybacks of JPY 24 billion completed.

• Total assets increased by JPY 200 billion, mainly from working capital and new subsidiaries.

Outlook and guidance

• FY2025 profit forecast is JPY 115 billion, factoring in a JPY 5 billion negative impact from U.S. tariffs.

• Gross profit forecast for FY2025 is JPY 400 billion; core operating cash flow forecast at JPY 145 billion.

• Dividend per share for FY ending March 2026 planned at JPY 165, up 10% year-on-year; additional share buyback of up to JPY 10 billion or 2.8 million shares announced.

• MTP2026 investment plan remains unchanged, with 70% of core operating cash flow allocated to growth investments and 30% to shareholder returns.

• FY2026 guidance projects profit for the year at JPY 120 billion and basic EPS of JPY 551.23.