Sojitz Reports Strong H1 Profit Growth, Raises Full-Year Outlook

Sojitz Corporation posted a significant increase in its first-half profits, reporting 63.6 billion yen in net income, a 21.3% jump compared to the same period last year. The strong results, covering the six months to September 30, 2026, were fueled by robust performance in its chemicals and energy solutions businesses, partially offset by challenges in the automotive sector. The company affirmed its full-year profit forecast of 130 billion yen, signaling continued confidence in its strategic direction.

Revenue for the period reached 1.672 trillion yen, a 34.8% increase year-over-year, bolstered by expanded business within its energy and infrastructure segment, alongside increased trading volumes in various chemical products. The company’s interim profit translated to 30.5% equity ratio and a net debt-to-equity ratio of 0.98. Sojitz is also actively pursuing structural reforms, including the sale of its Gregory Crinum coal assets in Australia, a move expected to streamline operations and improve profitability.

The positive interim results prompted Sojitz to maintain its previously announced annual dividend of 180 yen per share, comprising 90 yen for the interim and 90 yen for the final dividend. The company highlighted the progress of its 'Set for Next Stage' mid-term plan, emphasizing its focus on expanding into high-growth areas like renewable energy and infrastructure, alongside strengthening its existing trading capabilities. Specific initiatives include expanding its energy solutions business in the US and Australia, and bolstering its water treatment and industrial infrastructure ventures.

Within its diversified portfolio, the chemicals division experienced substantial growth, benefiting from rising prices and increased trading volumes. The energy and infrastructure segment also contributed significantly, driven by new investments and the consolidation of Australian infrastructure projects. However, the automotive sector faced headwinds due to challenges in the Australian used car market and costs associated with ongoing structural reforms. The company is also actively pursuing opportunities in water treatment and industrial infrastructure, particularly in the US and Australia.

Sojitz’s first-half performance demonstrates a successful strategy of diversifying its portfolio and focusing on high-growth sectors. The maintained full-year outlook and ongoing structural reforms suggest a commitment to long-term sustainable growth. The results align with broader trends of corporate earnings growth in India and increased demand for legal services related to dispute resolution and regulatory compliance, though the extent of Sojitz’s direct exposure to these trends remains unspecified within the filing.