ITOCHU ENEX (8133): FY2025 Results Summary — Net Profit Down 6.1% YoY as One-Off Gains Fade, Dividend Raised to ¥66

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ITOCHU ENEX CO., LTD. reported consolidated net sales of 851.1 billion yen (-7.9% year on year), operating profit of 24.1 billion yen (-10.2%), and net profit attributable to ITOCHU ENEX’s shareholders of 16.1 billion yen (-6.1%) for the fiscal year ended March 31, 2026 (FY2025). Net profit reached 100% of the full-year forecast. Base earnings, which exclude one-off gains/losses, stood at 15.8 billion yen. The company said the year-on-year decline in net profit was mainly a reactionary decline due to the absence of the strong performance in supply/demand operations in the Industrial Business and one-off gains related to solar power plants in Power & Utility recorded in the previous fiscal year, as well as a decrease in unit sales of new and used cars and a reduction in gross profit per vehicle in Car-Life.

Consolidated Results (Full-Year Actual)

Gross profit was 91.0 billion yen (-3.7% YoY). The ratio of SG&A expenses to gross profit deteriorated by 1.4 points to 76.2%. Operating profit achieved 99% of the FY2025 plan, while net profit attributable to shareholders achieved 100% of the FY2025 plan of 16.0 billion yen.

Item	FY2024 Results	FY2025 Results	Change	FY2025 Plan	Achievement Rate
Net sales	9,245	8,511	-734	―	―
Gross profit	944	910	-35	―	―
Selling, general and administrative expenses	-706	-694	+13	―	―
Loss (gain) related to fixed assets	-9	14	+23	―	―
Operating profit	269	241	-28	245	99%
Share of profit (loss) of investments accounted for using the equity method	18	24	+6	―	―
Net profit attributable to ITOCHU ENEX’s shareholders	171	161	-10	160	100%
Ratio of SG&A expenses to gross profit	74.8%	76.2%	1.4 pt deterioration	―	―

(Unit: 100 million yen, as reported.) On the balance sheet, total assets increased 10.4 billion yen year on year to 452.5 billion yen, mainly due to the solid creation of operating cash flows (End of March 2025: 4,422; End of March 2026: 4,525; change +104, in 100 million yen). Shareholders’ equity increased 9.5 billion yen to 181.8 billion yen, mainly reflecting the rise in net profit (1,723 to 1,818; change +95), and the equity ratio rose 1.2 points to 40.2% (from 39.0%). Net interest-bearing debt moved to -197 from -114 (change -82, in 100 million yen), and net DER improved to -0.11 times from -0.07 times (change -0.04 pt). Cash flows from operating activities were 441 in FY2025 versus 317 in FY2024, and substantive operating cash flow (operating CF less the increase/decrease in working capital) was 377 versus 421 a year earlier (all in 100 million yen).

Segment Results

By segment, Car-Life net profit attributable to shareholders was 52 (100 million yen) (YoY: -¥400 million, 109% of the segment plan achieved), reflecting decreases in unit sales of new and used cars and gross profit in the car dealer business. Industrial Business net profit was 48 (100 million yen) (YoY: -¥300 million, 103% of the plan achieved), as profit increased in the industrial gas sales business but could not offset the absence of the prior year’s strong supply/demand performance. Power & Utility net profit was 26 (100 million yen) (YoY: -¥800 million, 76% of the plan achieved), mainly due to the reaction to one-off gains related to solar power plants recorded in the previous fiscal year. Home-Life net profit was 29 (100 million yen) (YoY: -¥0 million, 100% of the plan achieved), as improved profit margins in LP gas sales and lower expenses from the integration of subsidiaries were offset by negative inventory effects. The Common segment improved by YoY: +¥500 million.

Segment	Metric	FY2024 Results	FY2025 Results	Change	Rate of Change
Car-Life	Net sales	6,300	5,847	-452	-7.2%
Car-Life	Operating profit	115	99	-16	-14.1%
Car-Life	Net profit attributable to shareholders	56	52	-4	-7.6%
Industrial Business	Net sales	1,346	1,173	-172	-12.8%
Industrial Business	Operating profit	69	60	-9	-12.9%
Industrial Business	Net profit attributable to shareholders	52	48	-3	-6.3%
Power & Utility	Net sales	776	714	-62	-8.0%
Power & Utility	Operating profit	58	44	-14	-23.7%
Power & Utility	Net profit attributable to shareholders	34	26	-8	-23.9%
Home-Life	Net sales	823	778	-46	-5.5%
Home-Life	Operating profit	25	29	+3	+12.8%
Home-Life	Net profit attributable to shareholders	29	29	-0	-1.0%

(Unit: 100 million yen, as reported.) In Car-Life, gasoline sales volume was 2,024 thousand kL (-4%) and diesel oil sales volume was 2,728 thousand kL (-2%); new car unit sales fell 14% to 23 thousand units and used car unit sales fell 13% to 17 thousand units. In Power & Utility, electricity retail volume rose 22% to 2,847 GWh, driven by a 44% increase in sales of high voltages. In Home-Life, LP gas sales volume was 408 thousand tons (-2%) and the number of customers under direct LP gas supply contracts fell to 568 thousand from 575 thousand.

FY2026 Forecast

For fiscal year 2026, the company aims to achieve a net profit of 16.5 billion yen, exceeding the 15.8 billion yen in core earnings (excluding one-time gains and losses) recorded in fiscal year 2025. It plans to accelerate new and strategic investments, targeting a cumulative total of 50 billion yen over the two-year period. Under the ENEX2030 medium-term plan’s Financial Indicators, the FY2026 plan also calls for substantive operating CF of ¥38.0 billion, ROE of 9.0%, and new and strategic investments of ¥39.2 billion (versus ¥10.8 billion executed in FY2025).

Financial Indicator	’25-’26 Plan	FY2025 Results	FY2026 Plan
Net profit	¥16.0 billion each fiscal period	¥16.1 billion (base earnings ¥15.8 billion)	¥16.5 billion (base earnings ¥16.5 billion)
Substantive operating CF	¥38.0 billion each fiscal period	¥37.7 billion	¥38.0 billion
ROE	Approx. 9.0%	9.1%	9.0%
New and strategic investments	¥50.0 billion cumulative (2-year)	¥10.8 billion	¥39.2 billion

By department, the FY2026 business policy plans call for net profit (100 million yen) of 50 in Car-Life (versus 52 in FY2025), 54 in Industrial Business (versus 48), 30 in Power & Utility (versus 26), and 30 in Home-Life (versus 29).

Shareholder Returns

ITOCHU ENEX’s shareholder return policy is to provide progressive dividends with a consolidated dividend payout ratio of 40% or more. The annual dividend for FY2025 is scheduled to rise 4.00 yen year on year to an ordinary dividend of 66 yen per share, corresponding to a dividend payout ratio of 46.4%. For FY2026, the company forecasts a further increase to 68 yen per share, corresponding to a dividend payout ratio of 46.5%. Annual dividends have risen every year since FY2017 (40 yen/share) under the current policy; in FY2020 a memorial dividend of 6 yen per share was separately paid, and the consolidated dividend payout ratio figures for that year include the memorial dividend.

Medium-Term Plan / Topics

ITOCHU ENEX is in the 2nd Stage (’25-’26) of its ENEX2030 medium-term business plan (‘To Create Driving Force Of Life’), which runs in four stages through FY2030 (’23-’24, ’25-’26, ’27-’28, ’29-’30). The company said it has been implementing its qualitative plan steadily, focusing on developing on-site capabilities (sales activities using DX, including the EneStore online shop for vehicle-related products and the Ekotomall housing equipment e-commerce website) and executing new and strategic investments (increasing LNG engine capacity, strengthening the marine fuel business through in-house logistics, and strengthening consolidated group business management including a new ERP system).

Notable initiatives updated for FY2025 include the acquisition of shares in Kanmon Kaiun K.K. (now ENEX Marine Connect Co., Ltd.) to bring marine fuel logistics in the Kyushu area in-house; the launch of Replaform, an e-commerce platform for housing equipment; the installation of two additional LNG engine power generation units (bringing total capacity to 15.6 MW); and the rollout of WECARS Partners, a new vehicle distribution model leveraging WECARS’s nationwide network of used-car stores. Under the ENEX2030 plan’s non-financial indicators, the FY2025 GHG emissions reduction (Scopes 1 and 2, versus FY2018) was down 37% based on FY2024 results, against a target of a 50% reduction or more by FY2030.

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.