Sumitomo Corporation (8053) Q2 2026 earnings summary

Executive summary

• Profit for FY2025 Q1-2 attributable to owners of the parent was ¥301.2 billion, up 18.6% year-over-year, with a 53% progress rate toward the unchanged full-year forecast of ¥570.0 billion.

• Revenues for the six-month period ended September 30, 2025, rose 0.5% year-over-year to ¥3,537.2 billion, with gross profit up ¥22.8 billion to ¥706.7 billion.

• Growth was driven by main segments such as leasing, diverse urban development, and digital, with asset replacement and extraordinary profits/losses contributing ¥43.0 billion in H1.

• Major portfolio transformation included the sale of non-core assets and acquisitions in digital and aircraft leasing.

• Comprehensive income for the period surged to ¥371.7 billion from ¥60.5 billion a year earlier.

Financial highlights

• Operating profit before tax increased 12.9% year-over-year to ¥372.4 billion.

• Free cash flow for the six-month period was ¥240.8 billion, up from ¥113.0 billion a year earlier.

• Shareholders’ equity rose to ¥4,884.2 billion, with a ratio of 40.8% and net D/E ratio improved to 0.55.

• Annual dividend forecast remains ¥140 per share; ¥24.1 billion of the ¥80.0 billion share repurchase program completed by September.

• Total assets as of September 30, 2025, were ¥11,976.6 billion, up ¥345.4 billion from March 31, 2025.

Outlook and guidance

• Full-year profit forecast remains at ¥570.0 billion, with EPS guidance of ¥471.75 and a reduced loss buffer from ¥-40.0 billion to ¥-20.0 billion.

• Annual dividend forecast for FY2026 is ¥140 per share, up from ¥130 in the previous year; interim dividend is ¥70 per share.

• Ongoing share repurchase program up to ¥80.0 billion, with ¥24.1 billion repurchased by September 30, 2025.

• Segment forecasts updated: main growth areas expected to maintain momentum, while recovery initiatives are planned for underperforming segments in H2.

• Asset replacement and extraordinary profits/losses expected to contribute ¥60.0 billion for the year.