Mitsubishi Corporation (8058): FY2025 Results Summary — Profit Beats Forecast, FY2026 Guidance Set at ¥1.1 Trillion with Higher Dividend

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

Mitsubishi Corporation (“MC”) reported FY2025 (fiscal year ended March 31, 2026) underlying operating cash flow of ¥1,048.1 billion and consolidated net income of ¥800.5 billion, both exceeding the company’s forecasts of ¥920.0 billion and ¥700.0 billion, respectively. Consolidated net income declined ¥150.2 billion year on year, mainly reflecting a decrease in capital recycling and one-time items to ¥96.8 billion from ¥268.8 billion in FY2024. For FY2026, MC forecasts underlying operating cash flow of ¥1,250.0 billion and consolidated net income of ¥1,100.0 billion, and will raise the dividend per share to ¥125, up ¥15 from FY2025.

Consolidated Results (Full-Year Actual)

Underlying operating cash flow rose ¥64.4 billion year on year to ¥1,048.1 billion, above the company’s forecast of ¥920.0 billion. Consolidated net income was ¥800.5 billion, down ¥150.2 billion (-16%) year on year but ¥100.5 billion above the ¥700.0 billion forecast. Of the ¥800.5 billion in consolidated net income, ¥96.8 billion consisted of capital recycling and one-time items, down from ¥268.8 billion in FY2024, which had included a large revaluation gain from Lawson’s reclassification as an equity-method affiliate and gains on the sale of two Australian steelmaking coal mines. ROE was 8.5%, down 1.8 points year on year, and the company completed ¥1,000.0 billion in share buybacks in FY2025, versus none in FY2024.

Item	FY2025	FY2024	Change
Underlying operating CF	¥1,048.1 bn	¥983.7 bn	+¥64.4 bn
Consolidated net income	¥800.5 bn	¥950.7 bn	(¥150.2 bn)
of which: Capital recycling and one-time items	¥96.8 bn	¥268.8 bn	(¥172.0 bn)
ROE	8.5%	10.3%	(1.8pt)
Dividend per share	¥110	¥100	+¥10
Share buybacks	¥1,000.0 bn	—	+¥1,000.0 bn

Segment Results

Effective April 1, 2026, Mitsubishi Corporation integrated the Environmental Energy and Power Solution segments into a single Energy & Power Solution segment; the company has restated FY2024 and FY2025 historical segment figures accordingly, as reflected below. Energy & Power Solution and Mineral Resources remained the two largest contributors to consolidated net income in FY2025. Materials Solution’s net income fell 61% year on year on impairments in SPDC and the basic materials business and lower North American plastic building materials prices, while Smart-Life Creation’s net income fell sharply from an elevated FY2024 base that had included a large one-time revaluation gain related to Lawson. Urban Development & Infrastructure and Mobility both posted higher net income, the former helped by the absence of prior-year provisions for Chiyoda Corporation’s U.S. Golden Pass LNG project, the latter by the absence of a prior-year impairment of equity-method investments in the automotive business.

Segment	Metric	FY2025	FY2024
Energy & Power Solution	Underlying operating CF	¥328.3 bn	¥326.7 bn
Energy & Power Solution	Consolidated net income	¥210.0 bn	¥186.2 bn
Materials Solution	Underlying operating CF	¥83.8 bn	¥108.0 bn
Materials Solution	Consolidated net income	¥29.0 bn	¥70.0 bn
Mineral Resources	Underlying operating CF	¥186.6 bn	¥185.9 bn
Mineral Resources	Consolidated net income	¥215.2 bn	¥235.0 bn
Urban Development & Infrastructure	Underlying operating CF	¥125.2 bn	¥74.0 bn
Urban Development & Infrastructure	Consolidated net income	¥87.0 bn	¥41.0 bn
Mobility	Underlying operating CF	¥105.2 bn	¥104.5 bn
Mobility	Consolidated net income	¥60.4 bn	¥114.3 bn
Food Industry	Underlying operating CF	¥117.3 bn	¥98.8 bn
Food Industry	Consolidated net income	¥86.7 bn	¥94.7 bn
Smart-Life Creation	Underlying operating CF	¥98.1 bn	¥99.6 bn
Smart-Life Creation	Consolidated net income	¥98.4 bn	¥188.1 bn

FY2026 Forecast

For FY2026, Mitsubishi Corporation forecasts underlying operating cash flow of ¥1,250.0 billion (+¥201.9 billion, +19%) and consolidated net income of ¥1,100.0 billion (+¥299.5 billion, +37%), driven by the consolidation and restructuring of the U.S. shale gas business and higher market prices and transaction volumes in the North American LNG / Equity LNG marketing business. The forecast includes ¥280.0 billion of capital recycling and one-time items. MC has embedded a ¥30.0 billion contingency for consolidated net income and a ¥23.0 billion contingency for underlying operating cash flow under “Other,” reflecting prudent assumptions regarding geopolitical volatility and supply chain disruptions, including a potential closure of the Strait of Hormuz extending into the first half of FY2026. ROE is forecast to recover to 11.5%.

Item	FY2026 Forecast	FY2025 (Actual)
Underlying operating CF	¥1,250.0 bn	¥1,048.1 bn
Consolidated net income	¥1,100.0 bn	¥800.5 bn
of which: Capital recycling and one-time items	¥280.0 bn	¥96.8 bn
ROE	11.5%	8.5%
Dividend per share	¥125	¥110

Segment	Metric	FY2026 Forecast	FY2025 (Actual)
Energy & Power Solution	Underlying operating CF	¥645.0 bn	¥328.3 bn
Energy & Power Solution	Consolidated net income	¥363.0 bn	¥210.0 bn
Materials Solution	Underlying operating CF	¥79.0 bn	¥83.8 bn
Materials Solution	Consolidated net income	¥50.0 bn	¥29.0 bn
Mineral Resources	Underlying operating CF	¥208.0 bn	¥186.6 bn
Mineral Resources	Consolidated net income	¥180.0 bn	¥215.2 bn
Urban Development & Infrastructure	Underlying operating CF	¥66.0 bn	¥125.2 bn
Urban Development & Infrastructure	Consolidated net income	¥75.0 bn	¥87.0 bn
Mobility	Underlying operating CF	¥111.0 bn	¥105.2 bn
Mobility	Consolidated net income	¥104.0 bn	¥60.4 bn
Food Industry	Underlying operating CF	¥127.0 bn	¥117.3 bn
Food Industry	Consolidated net income	¥99.0 bn	¥86.7 bn
Smart-Life Creation	Underlying operating CF	¥55.0 bn	¥98.1 bn
Smart-Life Creation	Consolidated net income	¥120.0 bn	¥98.4 bn

Shareholder Returns

Mitsubishi Corporation’s dividend policy is to continue progressive dividends based on the dividend amount per share, with further increases determined after assessing profit and underlying operating cash flow improvement. The dividend per share increased from ¥100 in FY2024 to ¥110 in FY2025, and will increase further to ¥125 in FY2026, reflecting improved visibility into earnings growth. In FY2025, MC completed ¥1,000.0 billion in share buybacks (announced April 3, 2025); total shareholder returns of ¥1,466.2 billion, including buybacks and cash dividends paid to non-controlling interests, exceeded the FY2025 plan of ¥1.5 trillion for the full CS 2027 three-year period on a run-rate basis. Under the updated CS 2027 (FY2025-FY2027) three-year plan, MC targets ¥1.5 trillion+ in dividends and ¥1.0 trillion+ in share buybacks. Although there is no total payout ratio target under CS 2027, the three-year average total payout ratio for FY2025 to FY2027 is expected to exceed the 40% target set under the prior Midterm Corporate Strategy 2024 (MCS 2024). The company will flexibly assess the deployment of unallocated cash capacity between investments and additional shareholder returns, while capping its net D/E ratio at approximately 0.6x under CS 2027; the actual net D/E ratio as at March 31, 2026 was 0.38x, up from 0.29x a year earlier.

Item	FY2025 (Actual)	FY2026 (Forecast / Plan)
Dividend per share	¥110	¥125
Share buybacks (single fiscal year)	¥1,000.0 bn	— (not set for FY2026 alone)
CS 2027 3-year Dividends plan (FY2025–FY2027, updated)	—	¥1.5 trillion+
CS 2027 3-year Share Buybacks plan (FY2025–FY2027, updated)	—	¥1.0 trillion+
Net D/E ratio	0.38x (actual, as at Mar 31, 2026)	approx. 0.6x (CS 2027 cap)

Corporate Strategy 2027 Update

Under Corporate Strategy 2027 (CS 2027), Mitsubishi Corporation continues to target consolidated net income of over ¥1.2 trillion by FY2027, supported by profit growth of over ¥400 billion from its “Enhance,” “Reshape,” and “Create” initiatives, measured against FY2024 adjusted consolidated net income of ¥681.9 billion (FY2024 consolidated net income was ¥950.7 billion, of which ¥268.8 billion consisted of capital recycling and one-time items). This comprises over ¥300 billion in combined growth from Enhance and Reshape and over ¥100 billion from Create. The overall profit growth plan for Enhance and Reshape remains unchanged at ¥300 billion despite upward revisions in asset turnover-type businesses and downward revisions reflecting changes in the business environment.

Reflecting FY2025 results that exceeded forecast and an expectation of solid FY2026 performance, MC revised its three-year (FY2025–FY2027) cash flow allocation plan under CS 2027 upward: underlying operating cash flow to ¥3.6 trillion+ (from ¥3.3 trillion+), divestitures to ¥2.1 trillion+ (from ¥1.7 trillion+, reflecting a planned sell-down of 25% of the upstream and midstream interests of the U.S. shale gas business and accelerated divestitures from other businesses), and sustaining CAPEX to ¥1.3 trillion+ (from ¥1.0 trillion+, including ¥0.3 trillion from the U.S. shale gas business). In FY2025, underlying operating cash flow of ¥1,048.1 billion, divestitures of ¥496.0 billion, and investments of ¥1,162.0 billion were recorded against the three-year plan.

Key investment projects announced during FY2025 include the acquisition of a U.S. shale gas business for approximately ¥800 billion (expected profit contribution of +¥50–60 billion, with 75% expected in FY2027), the Final Investment Decision for the Brunei Offshore Gas Development Project (¥40 billion investment, gas production of approximately 2.9 MTPA, MC’s share 18.75%, expected start of production around 2030), an agreement by Cermaq to acquire three salmon farming businesses for an enterprise value of ¥145 billion (profit contribution of over ¥10 billion expected in FY2027), the full consolidation of Mitsubishi Shokuhin for ¥138 billion (profit contribution of approximately +¥10 billion from FY2025), and agreements to acquire copper mining interests in Chile and the U.S. (the U.S. project for a consideration of ¥61 billion plus ¥26 billion in development costs, expected to increase average annual equity-basis copper production by approximately 30,000 MT).

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.