Mitsui Kinzoku (5706): FY2025 Results Summary — Record Highs on AI Server Demand and Metals Tailwinds

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Mitsui Kinzoku Company, Limited (TSE 5706) reported record results for FY2025, the fiscal year ended March 31, 2026, with net sales of 758.5 billion yen (up 6.5% year on year), operating income of 130.9 billion yen (up 75.1%), ordinary income of 136.7 billion yen (up 79.0%) and net income attributable to owners of parent of 91.3 billion yen (up 41.1%). The company states that net sales, operating profit, ordinary profit and net profit all increased, reaching record highs, driven by strong demand in the high-end server market including AI servers, which lifted sales volumes of major products such as VSP and MicroThin in the Engineered Materials segment, and in the Metals segment by the weak yen and high metal prices together with significant favorable inventory effects associated with these factors. For FY2026 the company forecasts net sales of 830.0 billion yen but lower profits, as favorable factors in the Metals segment in the previous fiscal year — yen depreciation, higher metal prices and related inventory effects — disappear and large-scale scheduled maintenance weighs on earnings.

Consolidated Results (Full-Year Actual)

The following is the consolidated statement of income for FY2025 (Unit: Billion yen). Gross profit rose to 202.6 billion yen from 150.2 billion yen while cost of sales declined, and SG&A expenses fell to 71.7 billion yen. Extraordinary income/losses turned to a net loss of -19.3 billion yen from a net gain of 4.4 billion yen a year earlier, mainly reflecting -16.9 billion yen of profit/loss on sale of shares of subsidiaries and associates.

Item	FY2025 Results	FY2024 Results	Difference (25-24)
Net Sales	758.5	712.3	46.2 (6.5%)
Cost of sales	555.9	562.1	-6.2 (-1.1%)
Gross Profit	202.6	150.2	52.4 (34.9%)
SG&A expenses	71.7	75.5	-3.8 (-5.0%)
Operating Income	130.9	74.7	56.2 (75.1%)
Non-operating income/expenses – net	5.8	1.7	4.2
Ordinary Income	136.7	76.4	60.3 (79.0%)
Extraordinary profit/losses – net	-19.3	4.4	-23.6
Net Income before income taxes	117.5	80.8	36.7 (45.4%)
Income taxes & minority interests	26.2	16.1	10.1
Net income attributable to owners of parent	91.3	64.7	26.6 (41.1%)

Operating income of FY2025 was 130.9 billion yen, 13.9 billion yen better than the FY2025 forecast announced on February 13. The company attributes the upside to Engineered Materials (+2.8; copper foil +1.1, catalysts +1.2), Metals (+2.5), inventory factors (+11.2) and actuarial gains in retirement benefit obligations of the head office (+0.2), partly offset by corporate & others (-2.6) and the PGM price difference on catalysts (-0.2).

Segment Results

Engineered Materials sales rose 33.4% to 328.4 billion yen and operating income rose 61.5% to 67.5 billion yen. On an ordinary income basis the segment improved by 26.2 billion yen, with copper foil contributing +22.6 (MicroThin and VSP volume of sales increases, others) and catalysts +6.1 (volume of sales increases, PGM price difference improvement, others), while PVD materials was -0.9 and headquarters -2.4. Metals sales rose 15.9% to 376.7 billion yen and operating income rose 69.5% to 70.8 billion yen. Corporate sales fell to 187.7 billion yen from 231.8 billion yen, reflecting the transfer of all shares of MITSUI KINZOKU ACT, completed on November 4, 2025 (Unit: Billion yen).

Segment	Metric	FY2025	FY2024	FY2026 Forecast (May 13)
Engineered Materials	Sales	328.4	246.2	379.0
Engineered Materials	Operating income	67.5	41.8	67.5
Engineered Materials	Ordinary income	66.5	40.3	67.0
Metals	Sales	376.7	325.0	434.0
Metals	Operating income	70.8	41.8	37.0
Metals	Ordinary income	75.1	44.5	37.5
Corporate	Sales	187.7	231.8	132.0
Corporate	Operating income	0.4	0.7	-0.1
Business Creation	Operating income	-7.5	-6.3	-9.0
Adjustment	Sales	-134.3	-90.6	-115.0
Adjustment	Operating income	-0.3	-3.2	-4.4
Consolidated	Sales	758.5	712.3	830.0
Consolidated	Operating income	130.9	74.7	91.0

Within Engineered Materials, copper foil sales grew to 135.0 billion yen from 93.2 billion yen and catalysts to 120.6 billion yen from 92.7 billion yen. In Metals, Lead & Zinc sales were 247.1 billion yen against 230.2 billion yen, and Copper & Precious Metals sales were 105.4 billion yen against 75.5 billion yen. Monthly sales volume of VSP rose to 550 t/month in 2025 from 370 t/month in 2024, and the MicroThin total sales volume index rose to 137 from 95 (2024 Q1 = 100).

FY2026 Forecast

The forecast announced on May 13 calls for net sales of 830.0 billion yen and operating income of 91.0 billion yen, a decrease of 39.9 billion yen from FY2025 (Unit: Billion yen). By half, the company guides for net sales of 410.0 billion yen and operating income of 49.0 billion yen in the first half, and 420.0 billion yen and 42.0 billion yen in the second half.

Item	FY2026 Forecast (May 13)	FY2025 Results	Difference (26-25)
Net Sales	830.0	758.5	71.5 (9.4%)
Operating Income	91.0	130.9	-39.9 (-30.5%)
Ordinary Income	93.0	136.7	-43.7 (-32.0%)
Net income attributable to owners of parent	75.0	91.3	-16.3 (-17.8%)

The bridge from FY2025 operating income of 130.9 billion yen to the FY2026 forecast of 91.0 billion yen comprises Engineered Materials +2.4 (copper foil +4.7, catalysts +0.7, headquarters -3.4), Metals -12.3 (LME/Forex +2.7, energy cost increase including cokes -3.8, operational and by-product differences in zinc and lead smelting +6.0, lead raw material mix variance -8.8, zinc and lead smelting costs increase -6.3, copper smelting -8.8, precious metals recycling -1.4), corporate & others -1.4, inventory factors -21.9, PGM price difference on catalysts -2.0 and actuarial gains in retirement benefit obligations -4.7. Excluding inventory factors and transient factors, the company says the FY2026 operating profit forecast is expected to decline by only 12.4 billion yen year on year, from 97.8 billion yen to 85.4 billion yen.

Metal price and foreign exchange assumptions for the FY2026 forecast are Zinc 3,200 $/t, Lead 1,900 $/t, Copper 590 ￠/lb, Indium 700 $/Kg, Palladium 1,600 $/oz, Rhodium 10,000 $/oz and 155.0 yen/US$. FY2025 actual averages were Zinc 2,968 $/t, Lead 1,953 $/t, Copper 491 ￠/lb, Palladium 1,336 $/oz, Rhodium 7,731 $/oz and 150.8 yen/US$. The zinc TC assumption is 85 $/t for FY2026, against 80 $/t in FY2025 and 165 $/t in FY2024.

Shareholder Returns

The annual dividend per share for FY2025 (shown as ’26/3 in the materials) is ¥245, including an interim dividend of ¥100, with DOE of 3.5%. For FY2026 (shown as ’27/3) the company forecasts an annual dividend of ¥280 with an interim dividend of ¥140 and DOE of 3.5%.

Item	’23/3	’24/3	’25/3	’26/3 (FY2025)	’27/3 Forecast (as of May 13)
Dividend per share	¥140	¥140	¥180 *1	¥245	¥280
<Interim Dividend>	( – )	(¥70)	(¥90) *1	(¥100)	(¥140)
DOE	3.3%	3.1%	3.0% *2	3.5%	3.5%

*1 Including the 150th Anniversary commemorative dividend of 15 yen. *2 Excluding the 150th Anniversary commemorative dividend of 15 yen.

Financial Position and Topics

At the end of FY2025 total assets were 697.5 billion yen and equity capital was 412.0 billion yen, lifting the equity ratio to 59.1% from 50.4% a year earlier. The balance of debt with interest fell to 114.1 billion yen (55.9 billion yen on a net basis), and the D/E ratio improved to 0.28 (0.14 net). The company’s forecast for the end of FY2026 is total assets of 760.0 billion yen, equity capital of 471.9 billion yen, an equity ratio of 62.1% and a D/E ratio of 0.23 (0.11 net).

On organizational changes, the company notes that from April 1, 2025 the former Mobility Sector was reorganized, with catalysts moving into the Engineered Materials Sector and Mitsui Kinzoku ACT, Mitsui Kinzoku Die-Casting Technology and Kyusyu Precision Equipment and Components placed under Corporate; in October 2025 the HRDP was transferred from the Business Creation Sector to the Engineered Materials Sector. The transfer of all shares of MITSUI KINZOKU ACT was completed on November 4, 2025; ACT recorded sales of 51.2 billion yen in FY2025 against 95.8 billion yen in FY2024, with an operating loss of -0.8 billion yen versus operating income of 1.0 billion yen. For FY2026, listed transient factors are large-scale maintenance for zinc smelting of -2.0 billion yen and for copper smelting of -2.6 billion yen, a total of -4.6 billion yen.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.