Sumitomo Raises Fiscal-Year Net Profit Forecast by ¥40 Billion to ¥670 Billion
Key Facts
On November 2, 2026, Sumitomo raised its forecast for net profit attributable to owners of the parent for the fiscal year ending March 31, 2027, to ¥670 billion from its previous estimate of ¥630 billion. The increase amounts to ¥40 billion, or 6.3%, according to the company’s financial disclosure. The forecast covers the full fiscal year, while net profit for the six months ended in September was ¥347.9 billion, according to first-half results. The company said it expects stable performance across its businesses in the second half. It also raised its forecast for underlying profit for the fiscal year to ¥670 billion from ¥620 billion.
Net profit attributable to owners of the parent was ¥347.9 billion in the first half, up 15.5% from ¥301.2 billion in the same period a year earlier, according to figures reported by Reuters. Underlying profit, which excludes asset replacements and exceptional gains and losses, rose to ¥334 billion from ¥259 billion. The comparison between the two figures shows growth in underlying earnings alongside the increase in net profit during the period. Sumitomo said first-half earnings represented strong progress toward its previous underlying profit forecast of ¥620 billion. After raising the forecast to ¥670 billion, the company expected stable performance across all its businesses in the second half.
The forecast revision came amid favorable currency movements, higher energy and mineral resource prices, and strong underlying earnings, Reuters reported, citing the company. Among segment results, mineral resources profit rose to ¥54.4 billion in the six months ended September 30, 2026, from ¥31.6 billion in the same period of 2025. Sumitomo attributed the improvement to higher copper prices, wider aluminum margins and strong precious metals trading. Energy transformation business profit rose to ¥58.2 billion from ¥48.1 billion year on year. The company said asset recycling in several power generation projects outside Japan contributed to profit growth in the segment.
The improvement was not evenly distributed across segments; digital AI business profit increased by ¥8.5 billion, while profit in the automotive and real estate segments declined, Reuters reported. The revised forecast also included a ¥30 billion loss reserve, with expected profit before the reserve at ¥700 billion. The company expected a return on equity of about 14% for the full fiscal year. These figures reflect different components of the annual estimate, from the reserve included to the profit expected before it. The disclosure’s comparison did not provide an estimate of analyst or market expectations.
Sumitomo raised its expected annual dividend for the fiscal year ending March 31, 2027, to ¥44 per share from its previous estimate of ¥40. It set the interim dividend at ¥22 per share, with payment scheduled to begin on December 1, 2026. The record date for the dividend was September 30, 2026. The revision comes under the company’s shareholder return policy, which provides for flexible dividends and share buybacks, with a total payout ratio of at least 40%. The policy also calls for dividend increases in line with earnings growth.
The company had announced share buybacks of up to ¥80 billion under a program running from May 7, 2026, to March 31, 2027, but completed the buybacks on September 3, 2026. In trading, Sumitomo’s American Depositary Receipts, trading under the ticker SSUMY, closed at $10.63 on October 30, 2026. The disclosure set November 6, 2026, as the scheduled date for filing the semiannual financial report. These dates give shareholders two upcoming milestones: the start of interim dividend payments, followed by the financial report filing. This follows the announcement of first-half results and revisions to the fiscal-year earnings and dividend forecasts.