Sumitomo Metal Mining (5713) Q4 2026 earnings summary

Executive summary

• FY2025 saw stable operations at major sites, new mine start-ups, and benefits from higher copper and gold prices and yen depreciation, resulting in net sales rising 9.3% year-over-year to ¥1,741,586 million and profit before tax surging 714.7% to ¥255,680 million.

• Comprehensive income increased 173.8% year-over-year to ¥289,280 million, with non-consolidated profit up 570.9% due to higher non-ferrous metal prices and improved Materials business performance.

• Materials business for electronic components in data centers remained strong, supporting record profits.

• Revised financial and shareholder return policies to optimize capital structure, enhance shareholder returns, and included share repurchases and dividend increases.

• Future focus includes stabilizing Quebrada Blanca copper mine, securing resources, advancing battery materials, and monitoring global uncertainties.

Financial highlights

• FY2025 net sales: ¥1,741.6 billion, up 9.3% year-over-year; gross profit: ¥274.5 billion, up 369.2%.

• Profit before tax: ¥255.7 billion, up 714.7% year-over-year; net income: ¥176.3 billion, up 969.3%.

• Basic earnings per share jumped to ¥649.55 from ¥59.99 year-over-year.

• FY2026 forecast: net sales ¥1,883.0 billion (+8.1%), profit before tax ¥229.0 billion (down 10.4%), net income ¥139.0 billion (down 21.2%).

• Excluding temporary factors, profit before tax was ¥170–160 billion, up ¥50 billion year-over-year, mainly due to higher copper and gold prices.

Outlook and guidance

• FY2026 expects high copper and gold prices but forecasts lower profit due to reversal of inventory valuation gains and higher costs from overseas projects and battery material transitions.

• Profit before tax (excluding temporary factors) forecast at ¥240–230 billion, up ¥70 billion year-over-year, driven by higher metal prices and increased production at Quebrada Blanca.

• For the year ending March 31, 2027, net sales are forecast to rise 8.1% to ¥1,883,000 million, but profit attributable to owners of parent is expected to decline 21.2% to ¥139,000 million.

• Basic earnings per share for FY2027 is projected at ¥518.08, reflecting the impact of share repurchase and cancellation.

• Closely monitoring Middle East situation and rare-earth procurement; proactive measures in place for stable supply and cost pass-through.