Sumitomo Corporation (8053) Q3 2026 earnings summary

Executive summary

• Profit for FY2025 Q1-3 attributable to owners was ¥408.5 billion, broadly in line with the previous year, with a 72% progress rate toward the full-year forecast of ¥570.0 billion, which includes a ¥-20.0 billion loss buffer.

• Revenues for the nine months ended December 31, 2025, rose 1.2% year-over-year to ¥5,382.7 billion, with gross profit up ¥35.3 billion to ¥1,086.7 billion.

• Comprehensive income attributable to owners rose sharply to ¥752.8 billion (+55% YoY), driven by significant foreign exchange gains.

• Additional SCSK shares were acquired, raising the equity stake to 88.63% and reducing shareholders' equity by approximately ¥560.0 billion.

• Annual dividend of ¥140 per share and share repurchase program (¥80.0 billion, with ¥66.7 billion repurchased by Jan. 2026) remain unchanged.

Financial highlights

• Revenues for FY25 Q1-3 were ¥5,382.7 billion (+¥63.0 billion YoY); gross profit was ¥1,086.7 billion (+¥35.3 billion YoY).

• Profit for the period attributable to owners was ¥408.5 billion (down 1.9% YoY).

• Comprehensive income for the period surged to ¥752.8 billion, driven by FX gains.

• Free cash flow turned positive at ¥144.3 billion, up ¥302.9 billion YoY, but was negative ¥158.6 billion in some reports due to higher investment activity.

• Total assets increased to ¥12,999.2 billion as of December 31, 2025.

Outlook and guidance

• Full-year profit forecast remains at ¥570.0 billion, with EPS guidance of ¥473.07 and segment forecasts largely unchanged.

• Q4 is expected to benefit from real estate deliveries and iron ore earnings.

• Year-end dividend forecast is ¥70 per share, totaling ¥140 for the year.

• ROE for FY2025 is expected to be in the mid-12% range.