MITSUI-SOKO HOLDINGS (9302): FY2025 Results Summary — Airfreight Forwarding and Hakozaki Building Lift Operating Profit 24%

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

Note: MITSUI-SOKO HOLDINGS labels the fiscal year that ended on March 31, 2026 as “FY2026” in its materials (the Balance Sheet Status slide shows the FY2026 column as the balance as of Mar. 31, 2026). This article follows the site convention of “FY2025” in its title and slug, while all tables and text below keep the year labels used in the source presentation.

MITSUI-SOKO HOLDINGS reported higher operating revenue and operating profit for FY2026. In the logistics business, operating revenue and operating profit increased mainly due to higher air cargo handling volumes, and in the real estate business both increased due to new tenant occupancy at the MSH Nihonbashi Hakozaki Building. Driven by strong performance, both ordinary profit and net income also increased. For FY2027, the final year of the Medium-term Management Plan 2022, the company forecasts operating revenue of 316.0 bn yen and operating profit of 23.0 bn yen, and plans to raise the annual dividend to 50 yen.

Consolidated Results (FY2026 Actual)

Operating revenue was 299.5 bn yen (YoY +6.7%) and operating profit was 22.1 bn yen (YoY +24.0%), with the operating profit margin improving 1.0pt to 7.4%. Ordinary profit rose 18.0% and profit attributed to owners of parent rose 11.1%.

Total Consolidated (Unit: 100 mil. yen)	FY2025	FY2026	Change	Change(%)
Operating Revenue	2,807	2,995	＋188	＋6.7%
Operating Profit	178	221	＋43	＋24.0%
Operating profit margin	6.4%	7.4%	＋1.0pt	―
Ordinary Profit	180	213	＋33	＋18.0%
Profit attributed to owners of parent	100	112	＋12	＋11.1%

Below the operating line, non-operating profit (loss) moved from 2 to -8, extraordinary gains were 9 (versus 18) and extraordinary losses were 12 (versus 16), leaving profit before income taxes at 210 (＋28). Items noted on the slide include a gain on sale of shares of associate of +0.4 bn yen, a gain on sale of investment securities of +5 bn yen, expenses related to relocation of head office of -0.8 bn yen, expenses related to capital policy of -0.4 bn yen, a foreign exchange loss of -0.6 bn yen and demolition costs of fixed assets of -0.3 bn yen.

Segment Results

In the logistics business, airfreight forwarding was the largest driver, with operating revenue up 22.9% and operating profit up 38.7%, supported by robust cargo movements related to automotive. The real estate business grew operating profit 69.4% on new tenants in the Hakozaki Building and others.

Segment (Unit: 100 mil. yen)	FY2025	FY2026	Change	Change(%)
Operating Revenue	2,807	2,995	＋188	＋6.7%
Logistics business	2,751	2,920	＋169	＋6.1%
Warehousing/Port transportation	1,373	1,392	＋19	＋1.4%
Airfreight forwarding(FWD)	438	539	＋101	＋22.9%
3PL/LLP	804	825	＋21	＋2.6%
Land transportation	272	291	＋19	＋6.9%
Elimination of intra-group transactions	-136	-127	＋9	―
Real estate business	67	86	＋19	＋28.6%
Eliminate/Corporate	-10	-11	-1	―
Operating Profit	178	221	＋43	＋24.0%
Logistics business	214	245	＋31	＋14.4%
Warehousing/Port transportation	74	75	＋1	＋0.4%
Airfreight forwarding(FWD)	62	86	＋24	＋38.7%
3PL/LLP	67	70	＋3	＋5.5%
Land transportation	14	16	＋2	＋16.0%
Elimination of intra-group transactions	-3	-3	＋0	―
Real estate business	22	37	＋15	＋69.4%
Eliminate/Corporate	-57	-60	-3	―

The bridge of operating profit from 178 to 221 comprises ①Quantity (Original) +23, ②Quantity (New) +5, ③Margin +2, ④Real estate +15 and ⑤Corporate -3. Within these, air FWD contributed +24 on robust automotive-related cargo movements, while the real estate business added +20 from higher rent and other income due to new tenants, partly offset by an increase in amortization expense of -5. The company notes that airfreight rates remained substantially flat year-on-year, so the change in margins had no impact on earnings.

Cash Flow and Balance Sheet

Operating cash flow was a net cash inflow of 23.7 billion yen, mainly due to the recording of net income; investing cash flow was -96, driven by the MSH Nihonbashi Hakozaki Building’s multi-tenant construction project and the construction of a new warehouse in South Korea; and financing cash flow was -34, including dividends paid of -37, the third-party allotment (capital increase +107 and treasury share disposal +80) and repurchase of own shares of -120. Free cash flow was +141 and cash and cash equivalents rose from 347 to 477. On the balance sheet, total assets increased 303 to 3,107 and equity capital increased 249 to 1,421, lifting the equity ratio to 45.7% (＋3.9) and improving the D/E ratio to 0.60 (-0.15). The R&I rating changed from “A-” to “A”.

FY2027 Forecast

For FY2027, the company expects operating revenue of 316.0 bn yen (YoY +5.5%) and operating profit of 23.0 bn yen (YoY +4.0%). Ordinary profit is expected to decline slightly to 211, while profit attributed to owners of parent is expected to increase 12.1% to 125, due to the elimination of head office relocation expenses.

Total Consolidated (Unit: 100 mil. yen)	FY2026 Results	FY2027 Forecast	Change	Change(%)
Operating Revenue	2,995	3,160	＋165	＋5.5%
Operating Profit	221	230	＋9	＋4.0%
Ordinary Profit	213	211	-2	-0.9%
Profit attributed to owners of parent	112	125	＋13	＋12.1%

Segment Forecast (Unit: 100 mil. yen)	FY2026 Results	FY2027 Forecast	Change	Change(%)
Operating Revenue	2,995	3,160	＋165	＋5.5%
Logistics business	2,920	3,070	＋150	＋5.2%
Warehousing/Port transportation	1,392	1,430	＋38	＋2.7%
Airfreight forwarding(FWD)	539	622	＋83	＋15.4%
3PL/LLP	825	864	＋39	＋4.8%
Land transportation	291	291	―	―
Elimination of intra-group transactions	-127	-137	-10	―
Real estate business	86	100	＋14	＋15.9%
Eliminate/Corporate	-11	-10	＋1	―
Operating Profit	221	230	＋9	＋4.0%
Logistics business	245	253	＋8	＋3.4%
Warehousing/Port transportation	75	85	＋10	＋13.8%
Airfreight forwarding(FWD)	86	84	-2	-2.3%
3PL/LLP	70	71	＋1	＋1.2%
Land transportation	16	16	―	―
Elimination of intra-group transactions	-3	-3	―	―
Real estate business	37	45	＋8	＋22.9%
Eliminate/Corporate	-60	-68	-8	―

For FY2027 the company expects a gradual increase in the volume of imported cargo such as food raw materials, the launch of new healthcare logistics operations and home appliance/furniture delivery and installation services, and the full-year contribution from new tenants at the MSH Nihonbashi Hakozaki Building and others. Although labor and transportation costs are expected to rise, the company will continue to implement cost reduction and appropriate fee collection. Operating cash flow is expected to be a cash inflow of 26.0 billion yen, with investing cash flow of -210 used for the construction of new healthcare warehouses and a warehouse at the New Port of Busan, South Korea. The equity ratio is forecast at 45.2%, the D/E ratio at 0.63 and ROE at 8.8% versus 8.6% in FY2026, a level the company expects to remain above its cost of capital.

Shareholder Returns

The annual dividend for FY2026 was 49.00 yen with a payout ratio of 33.0%. Under the dividend policy of “Flexible dividends linked to our performance based on an annual dividend payout ratio of 30%,” the company plans an annual dividend of 50.00 yen per share for FY2027, with a forecast payout ratio of 30.0%.

Item	FY2026 (Actual)	FY2027 (Forecast)
Annual dividend per share	49.0 yen	50.0 yen
Payout ratio	33.0 %	30.0 %

Following a review of capital allocation ahead of the final year of the mid-term management plan, the share repurchase program has been authorized for up to 5.5 million shares and a total repurchase price of up to JPY 34 billion, by market purchases on the Tokyo Stock Exchange including the off-auction own share repurchase trading (ToSTNeT-3) system, and is expected to be completed by July 31, 2026 utilizing ASR (Accelerated Share Repurchase). Approximately 3.29 million shares / approximately JPY12 billion worth of treasury shares had been acquired by the end of FY2026. The capital allocation plan was revised from shareholder returns of JPY20 billion and growth investment of JPY100 billion to dividends of JPY20 billion plus share repurchases of JPY34 billion (maximum) and growth investment of approximately JPY60-75 billion, with maintenance and renewal investment unchanged at JPY30 billion.

Medium-Term Plan and Topics

The Medium-term Management Plan 2022, “Going on the Aggressive by Deepening,” targets operating revenue of ¥350 billion, operating profit of ¥23 billion, operating CF of ¥30 billion, investment of ¥130 billion, a payout ratio of 30%, a D/E ratio of 1.0 times and ROE over 12%. Operating profit for FY2026 was 22.1 billion yen, and the company expects to achieve the mid-term target of 23.0 billion yen in FY2027. Over the four-year period from FY2023 to FY2026, the logistics business increased actual value by 9.7 billion yen, and in FY2027 it is also expected to increase operating profit by 0.8 billion yen due to the commencement of operations at the Busan warehouse in South Korea and others. The Hakozaki Building has been operating at 100% capacity since Q4 FY2026 and will contribute to full-year earnings starting in FY2027.

Topics for FY2026 include a capital and business alliance agreement with Mitsui Fudosan Co., Ltd. entered into on February 6, 2026, through which the company raised approximately 18.4 billion yen via a third-party allotment, with funds allocated to construction projects for dedicated healthcare logistics hubs — approximately 15.0 billion yen for the Kanto region and approximately 7.0 billion yen for the Kansai region. In the Hokuriku region, the company decided to invest approximately 2.5 billion yen to address aging facilities and improve operational efficiency through the consolidation of nine locations, with the new warehouse in Fukui-shi scheduled for completion in April 2028. Other initiatives include an investment in Collabo CREATE CO., LTD., a new healthcare logistics company established on April 1, 2026 by SUZUKEN CO., LTD., a new facility of approximately 7,200 tsubo in Kawaguchi City, Saitama Prefecture to strengthen B2B2C capabilities, and field testing at the Port of Kobe of AI-based optimization of container warehousing planning developed with Hitachi, Ltd. and MITSUI E&S Co., Ltd. The company was selected for the first time as a “DX Stocks 2026” issue, was named one of the “SX nominated companies 2026” at “SX Brand,” and received the Special Award in the Environmentally Sustainable Company category at the 7th ESG Finance Awards Japan.

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.