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Sojitz Corporation

2768・Prime Market・Wholesale Trade

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Sojitz Corporation2768

Business

Sojitz Corporation is a general trading company (sogo shosha) established in 2003 through the business integration of Nichimen Corporation and Nissho Iwai Corporation. The company comprises eight segments—Automotive & Aerospace Infrastructure, Energy & Healthcare, Metals & Mineral Resources Recycling, Chemicals, Consumer Industry & Agriculture Business, Retail & Consumer Service, and Others—and consists of a total of 542 companies, including 413 consolidated subsidiaries and 129 equity-method affiliates. With Latin America, Australia, Southeast Asia, and Europe and the Americas as key bases, the company conducts global operations spanning goods trading, trade, manufacturing, services, project investment, and financial activities. Revenue for FY2026 (ending March 2026) is expected to reach ¥2,757,350 million.

Business Model

Sojitz's revenue structure consists of three layers: (1) trading income from commodity trading and trade, (2) investment income and dividend income from equity-method affiliates, and (3) gross profit from operating companies consolidated as subsidiaries. Under Medium-Term Management Plan 2026, based on the "KATI model," the company is pursuing a strategy of expanding functions and developing new domains starting from businesses where it has expertise, and evolving individual initiatives into a sustainable earnings base ("Katamari"). It practices disciplined cash allocation, directing 70% of basic operating cash flow to growth and human capital investment and 30% to shareholder returns.

Company Strengths

The company successively acquired McClure and Freestate in the US and Ellis Air and Climatech in Australia, building an energy solutions business that includes energy-saving and data center-related services. In FY2026 (ending March 2026), gross profit in the Energy & Healthcare segment is expected to expand by ¥25.7 billion year on year to over ¥65,900 million, with the effect of new consolidations confirmable in the figures.

The Chemicals segment holds a customer base of over 5,000 companies at home and abroad, backed by many years of trading track record. Through the new consolidation of Nippon A&L Inc., the company has expanded into manufacturing areas such as SBR latex and ABS resin, and gross profit in the Chemicals segment for FY2026 (ending March 2026) is expected to increase by ¥7.3 billion year on year to ¥72,542 million. The company also leverages its European network through Sojitz SOLVADIS GmbH to diversify its supply chain in response to geopolitical risks.

The company operates a fertilizer business with a high market share in Southeast Asia through Thai Central Chemical in Thailand and Atlas Fertilizer in the Philippines, among others. In Vietnam, it has already established an integrated system covering everything from livestock fattening to meat processing and sales. The business is also evolving into an agricultural platform combining digital agriculture (AI analysis of satellite imagery and agricultural simulation), with its long track record serving as a source of competitive advantage.

ENVALITH's Perspective

For FY2026 (ending March 2026), revenue increased 9.9% year-on-year to ¥2,757,350 million, but profit attributable to owners of parent declined 6.3% year-on-year to ¥103,611 million. The primary cause was a sharp profit decline of ¥24,363 million year-on-year in the Metals, Resources & Recycling segment, driven by falling market prices for Australian coking coal, sluggish production efficiency, and impairment losses. Without a recovery in resource market conditions—an external factor—a full-scale reversal in company-wide profit will be difficult, and the extent to which growth in the non-resource segments can offset the downturn in the resource segment remains the key focus for ongoing evaluation.

The company forecasts profit attributable to owners of parent for FY2027 (ending March 2027) at ¥130,000 million (+25.5% year-on-year), a substantial increase. The assumed exchange rate is ¥150/US dollar. This forecast is premised on continued growth in the Energy and Healthcare businesses and a recovery in the resource segment, but multiple uncertainties remain, including the outlook for improvement in Australian coking coal market conditions and production efficiency, the sustainability of the effect from newly consolidating the energy conservation business, and the reproducibility of gains from asset replacement. Investors need to scrutinize the validity of these assumptions individually.

At the end of FY2026 (ending March 2026), net interest-bearing debt increased by ¥152,275 million from the previous fiscal year-end to ¥1,039,566 million, and the net debt-to-equity ratio rose to 0.95x. Total assets expanded significantly to ¥3,648,023 million (up 18.2% year-on-year), driven by the acquisition of new consolidated subsidiaries and other factors. Cash flow from financing activities showed an inflow of ¥110,217 million (mainly from long-term borrowings of ¥657,848 million), reflecting continued borrowing-dependent investment expansion. The equity ratio has been trending downward, falling to 29.9% (from 31.4% in the previous period), making the balance between investment expansion and financial soundness a key evaluation axis going forward.

Growth Strategy

Through expanded investment and cross-organizational strengthening of DX/GX under the Medium-Term Management Plan 2026, the company aims to reach the 'Next Stage' with net income attributable to owners of the parent of ¥200.0 billion.

The company has strengthened its position as the largest profit-contributing segment company-wide through new consolidations and bolt-on investment expansion in energy-conservation-related businesses (ESCO operations in the US and Australia), accumulation of renewable energy IPP businesses such as solar power and offshore wind, and expansion of hospital PPP and private medical businesses. Profit attributable to owners of the parent reached ¥31,932 million in FY2026 (ending March 2026), achieving a substantial year-on-year increase.

Through asset sales including the Nigeria gas retail business, freight car leasing business, and domestic commercial development and operation business, gain on liquidation of affiliated companies reached ¥41,746 million in FY2026 (ending March 2026), a substantial year-on-year increase. The company intends to maintain discipline in asset efficiency improvement and investment recovery while continuing to reinvest in new growth areas.

Due to an increase in defense-related transactions (supported as an external tailwind by Japan's policy of expanding defense spending) and expansion of aircraft-related transactions, profit attributable to owners of the parent in the Aerospace & Social Infrastructure segment increased to ¥15,506 million (up ¥3,300 million year-on-year). The company also made investments in an Australian infrastructure development company and public transportation businesses, strengthening its framework for securing large-scale project orders.

The company has announced consolidated earnings forecasts for FY2027 (ending March 2027) of profit attributable to owners of the parent of ¥130,000 million (up 25.5% year-on-year), gross profit of ¥440,000 million, and profit before tax of ¥170,000 million. The assumed exchange rate is ¥150 per US dollar. Continued growth in Energy & Healthcare and recovery in the Metals & Mineral Resources segment will be key to achieving this target.

Under the 'Medium-Term Management Plan 2026', the company has adopted a progressive dividend policy based fundamentally on a shareholders' equity DOE (dividend on equity) of 4.5%. The annual dividend for FY2026 (ending March 2026) was ¥165 (an increase from ¥150 in the previous fiscal year), with a payout ratio of 33.3%. The Board of Directors has resolved an interim dividend of ¥90 per share for FY2027 (ending March 2027) (an increase from ¥82.50 in the previous fiscal year).

Last updated: July 19, 2026