Mitsui Raises Net Profit Forecast to ¥1.05 Trillion After First-Half Surge
Key Facts
Mitsui raised its forecast for net profit attributable to owners of the parent for the fiscal year ending in March 2027 to ¥1.05 trillion from ¥920 billion previously, following strong first-half performance. It also increased its core operating cash flow forecast to ¥1.12 trillion from ¥1.05 trillion. Revenue totaled ¥8.322 trillion in the first half, up 23.1% year over year, while profit before income taxes rose 29.8% to ¥709.5 billion, the company said in its financial results. The revisions lift its fiscal-year profitability and core cash flow estimates as the company continues to target record earnings over the medium term. Mitsui’s U.S.-listed shares closed at $623.41 on November 3, according to EL7 data.
The company raised its fiscal-year gross profit forecast to ¥1.56 trillion from ¥1.45 trillion and its forecast for profit before tax to ¥1.37 trillion from ¥1.22 trillion. It expects equity-method investment earnings to increase by ¥70 billion to ¥590 billion from ¥520 billion. In the first half, profit before income taxes was ¥709.5 billion, alongside year-over-year growth of 29.8% and expanding revenue. The revised estimates highlight the role of investment results, along with operating earnings across the company’s businesses, in the expected improvement. Mitsui said the global economy improved gradually in the first half despite pressure from rising energy prices and supply-chain disruptions caused by instability in the Middle East.
Mineral resources and metals were among the drivers of improved first-half results, with the segment’s profit rising to ¥139.7 billion from ¥114.3 billion in the year-earlier period. The company attributed the increase to higher copper prices, lower iron ore costs and higher volumes resulting from operational efficiency. In the energy segment, first-half profit was ¥103.3 billion, compared with ¥102.2 billion a year earlier. Mitsui said it expects an additional contribution from liquefied natural gas trading in the second half and raised its fiscal-year energy profit forecast by ¥60 billion. This means LNG trading is expected to support the coming period, rather than serve as a main explanation for first-half gains.
Mitsui raised its full-year core operating cash flow forecast to ¥1.12 trillion from ¥1.05 trillion, but cash flow from operating activities in the first half fell to ¥223.4 billion from ¥428.7 billion in the year-earlier period. Free cash flow also declined to ¥23.4 billion from ¥187.6 billion. The company attributed the pressure to higher working capital, particularly an increase in trade receivables. By contrast, its measure of core operating cash flow rose to ¥511.6 billion in the first half from ¥448.5 billion, a measure that, by its definition, excludes the effects of changes in working capital and lease liability payments. The divergence between the measures shows the effect of working capital on actual cash flows, despite an increase in the core measure the company uses for its financial guidance.
The company maintained its plan to increase shareholder returns, forecasting an annual dividend of ¥140 per share for the year ending in March 2027, up ¥25 from the previous year. The expected amount is split equally between an interim and a final dividend, at ¥70 per share each. Over a longer horizon, Mitsui is targeting profit of ¥1.1 trillion and a return on equity of 12% in the fiscal year ending in March 2029. It also set a target for core operating cash flow of ¥1.2 trillion for that fiscal year. These targets link near-term dividends to the company’s broader plan for earnings and cash flow growth.
Mitsui expects the situation in the Middle East to have a net positive impact of ¥40 billion on earnings for the fiscal year ending in March 2027, with gains from oil, LNG and trading projects offset by logistics burdens and mining diesel costs. In its LNG business, the company said higher volumes and more advanced functions will have a greater effect on earnings in the fiscal year ending in March 2028. It scheduled a financial results meeting with analysts and institutional investors for November 6, 2026, and the interim report for November 13. The dividend is scheduled to be paid on December 2, 2026. These dates mark the next steps in the company’s results disclosures and payment of the announced dividend.