Sumitomo Corporation (8053): FY2025 Results Summary — Record Profit, Dividend Hike, and 4-for-1 Share Split

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

Sumitomo Corporation reported profit for the year attributable to owners of the parent of ¥600.3 bil. for FY2025, a record high and an increase of ¥38.5 bil. compared with FY2024, with ROE of 12.9%. For FY2026, the company forecasts a further record profit of ¥630.0 bil. (¥660.0 bil. before a loss buffer of ¥-30.0 bil.) and ROE of around 13%. Regarding the Middle East situation, impacts that can be reasonably estimated have been incorporated into the segment forecasts. The annual dividend for FY2025 was raised to ¥150/share, FY2026’s dividend is forecast to rise further to ¥160/share, and a 4-for-1 share split is planned effective July 1, 2026.

Consolidated Results (Full-Year Actual)

FY2025 results reflected steady growth in the company’s 8 growth areas, led by Digital, Leasing, Real estate, and Energy solutions, together with further acceleration of asset replacement: asset replacement and extraordinary profits/losses totaled ¥72.0 bil. in FY2025 (¥47.0 bil. in FY2024). Underlying profit rose to ¥528.0 bil. from ¥515.0 bil. in FY2024.

Item	FY2025	FY2024	Change
Profit for the year (attributable to owners of the parent)	¥600.3 bil.	¥561.9 bil.	¥+38.5 bil. (YoY)
Underlying profit	¥528.0 bil.	¥515.0 bil.	+13.0 bil.
Asset replacement and extraordinary profits/losses	¥72.0 bil.	¥47.0 bil.	+25.0 bil.
ROE	12.9%	12.4%	+0.5pt (YoY)
Annual Dividend	¥150/share	¥130/share	–
Share Repurchase	¥70.0 bil.*	¥70.0 bil.	–

Segment Results

On the segment classification used prior to the FY2026 reorganization, Media & Digital led profit growth in FY2025 (+¥6.0 bil. to ¥51.2 bil.), driven by the consolidation of Net One Systems into SCSK and the impact of the increased equity stake in SCSK. Automotive rose ¥12.0 bil. to ¥63.2 bil., Diverse Urban Development rose ¥4.5 bil. to ¥81.5 bil. on delivery of large-scale properties, and Energy Transformation Business rose ¥6.0 bil. to ¥102.4 bil. Mineral Resources declined ¥8.8 bil. to ¥82.3 bil., mainly due to a drop in coal prices and a decrease in coking coal sales volume in Australia and a decline in prices in the South Africa iron ore mining business, partly offset by higher copper prices. Lifestyle Business swung to a loss of ¥-3.6 bil. (down ¥17.7 bil.), mainly due to weak performance in the melon business within the fresh produce business in Europe and the Americas, which was sold in the second half. Figures below are in billions of yen, as reported in the presentation.

Segment	Metric	FY2025	FY2024
Steel	Profit for the Year	74.3	68.4
Automotive	Profit for the Year	63.2	51.2
Transportation & Construction Systems	Profit for the Year	88.9	101.5
Diverse Urban Development	Profit for the Year	81.5	77.1
Media & Digital	Profit for the Year	51.2	45.2
Lifestyle Business	Profit for the Year	-3.6	14.1
Mineral Resources	Profit for the Year	82.3	91.1
Chemical Solutions	Profit for the Year	26.5	21.4
Energy Transformation Business	Profit for the Year	102.4	96.4
Corporate and Eliminations	Profit for the Year	33.5	-4.5
Total	Profit for the Year	600.3	561.9

FY2026 Forecast

Effective April 1, 2026, the former Media & Digital segment was reclassified into Communication Services and Digital AI. On this new, reclassified basis, FY2026 forecasts call for profit for the year of ¥630.0 bil. (¥660.0 bil. before the ¥-30.0 bil. loss buffer), underlying profit of ¥620.0 bil., and asset replacement and extraordinary profits/losses of ¥40.0 bil. By segment, Digital AI is forecast to increase ¥17.7 bil. to ¥53.0 bil., mainly reflecting the positive impact from the increased equity stake in SCSK, and Energy Transformation Business is forecast to increase ¥12.6 bil. to ¥115.0 bil. on progress in promoting an asset-turnover-based model in the Overseas IPP/IWPP business. Automotive is forecast to decline ¥29.2 bil. to ¥34.0 bil. due to tough competition in key markets and lower sales volumes from the deteriorating situation in the Middle East.

Item	Forecast	FY2025 (Actual)
Profit for the year (attributable to owners of the parent)	¥630.0 bil. (¥660.0 bil. before loss buffer)	¥600.3 bil.
Underlying profit	¥620.0 bil.	¥528.0 bil.
Asset replacement and extraordinary profits/losses	¥40.0 bil.	¥72.0 bil.
Loss buffer	¥-30.0 bil.	–
ROE	Around 13%	12.9%
Annual Dividend	¥160/share (pre-split; ¥40/share post-split)	¥150/share
Share Repurchase	¥70.0 bil.	¥70.0 bil.*

Segment	FY2025 Results	FY2026 Forecast	Change
Steel	74.3	72.0	-2.3
Automotive	63.2	34.0	-29.2
Transportation & Construction Systems	88.9	104.0	+15.1
Diverse Urban Development	81.5	95.0	+13.5
Communication Services	16.0	15.0	-1.0
Digital AI	35.3	53.0	+17.7
Lifestyle Business	-3.6	17.0	+20.6
Mineral Resources	82.3	95.0	+12.7
Chemical Solutions	26.5	33.0	+6.5
Energy Transformation Business	102.4	115.0	+12.6
Corporate and Eliminations	33.5	27.0	-6.5
Total	600.3	630.0	+29.7

Shareholder Returns

The shareholder return policy is a total payout ratio of 40% or higher combined with progressive dividend payments (dividends to be maintained or increased). The annual dividend for FY2025 was set at ¥150/share (interim ¥70, year-end ¥80), an increase of ¥10/share from the forecast announced on May 1, 2025, and the company will repurchase an additional ¥10.0 bil. of shares as additional shareholder return, of which ¥60.0 bil. of the FY2025 total has been repurchased and canceled. The FY2026 annual dividend forecast is ¥160/share on a pre-share-split basis (¥40/share on a post-split basis), with a planned share repurchase of ¥70.0 bil. A 4-for-1 share split is planned effective July 1, 2026, with the stated purpose of lowering the per-unit share price to create a more accessible investment environment, increase share liquidity, and expand the investor base.

Item	FY2025 (Actual)	FY2026 (Forecast)
Annual Dividend per Share	¥150 (Interim ¥70 / Year-end ¥80)	¥160 (pre-split); ¥40 (post-split)
Share Repurchase	¥70.0 bil. (of which ¥60.0 bil. repurchased and canceled)	¥70.0 bil.
Shareholder Return Policy	Total payout ratio of 40% or higher & progressive dividend payments	Same policy maintained

Medium-Term Plan / Topics

Under the Medium-Term Management Plan 2026, the CAGR (FY2023 to FY2026 Forecast) of underlying profit in the 8 growth areas is approx. +11%, with Digital and Leasing having executed major investments and Real estate and Energy solutions pursuing earnings growth through improved profitability via asset turnover. Full acquisition of SCSK was completed in March 2026, with profit growth from FY2026 onward forecast to exceed the plan at the time of acquisition, and acquisition of Air Lease Corporation was completed in April 2026, targeting growth in the aircraft leasing business exceeding the industry average of 5%. On business portfolio transformation, the company executed a Share Purchase Agreement on May 1, 2026 to divest its stake in the Ambatovy Nickel business in Madagascar to Ambatovy Mineral Resources Investment Holding Company (AMRI); an approximately ¥70.0 bil. loss is expected in FY2026 from this divestment, but the impact on earnings is expected to be immaterial after tax effects and has already been incorporated into the FY2026 forecast, with no further losses expected. Cash in from asset replacement for FY2024-FY2026 has been increased from a planned ¥0.8 trillion to ¥1.1 trillion, and under the FY2024-FY2026 revised plan, cash flow earnings are ¥2.0 trillion, investment ¥3.0 trillion, and shareholder returns ¥0.7 trillion. On financial soundness, the company aims to reduce interest-bearing liabilities and the Net D/E ratio, which rose to 0.68 in FY2025 from 0.57 in FY2024 due to the execution of large-scale investments, back to the FY2024 actual level by the end of FY2028.

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.