ITOCHU ENEX CO.,LTD.
8133・Prime Market・Wholesale Trade
Business
ITOCHU Enex Co., Ltd. is an energy distribution company whose parent company is ITOCHU Corporation, operating four segments: Car Life, Industrial Business, Electricity & Utility, and Home Life. Its core operations center on the operation of 1,496 gas stations (CS) and petroleum product wholesaling, with approximately 568 thousand direct LP gas sales customers and approximately 318 thousand electricity retail customers. The company covers a wide range of business areas, from industrial products such as asphalt, marine fuel, industrial gas, and AdBlue® to renewable energy power generation and heat supply, and is composed of 36 subsidiaries and 25 equity-method affiliates. Revenue for FY2025 was ¥851,235 million.
Business Model
The company procures energy products such as petroleum products, LP gas, and electricity, and earns distribution margins by delivering them to end customers through its CS network, direct sales operations, and corporate sales channels. In addition, service businesses including the Automobile Dealer Business, Auto Auction Business, Fleet Management Services, heat supply, and renewable energy power generation diversify earnings. Investment gains and losses from 25 equity-method affiliates also contribute to profit, forming a structure that combines asset-light investment returns with direct business income.
Company Strengths
As a subsidiary of parent company Itochu Corporation, the company has obtained high credit ratings from JCR, including AA- (Stable) and a J-1+ commercial paper rating. Through efficient cash management utilizing the group financial system, net DER stood at -0.11x, maintaining a state of effectively zero net debt. The company secures ample overdraft facilities and bond issuance capacity, providing a financial foundation capable of executing investments of approximately ¥2,800 million under its medium-term plan.
The company holds a multi-channel customer base comprising 1,496 CS (Car Life Station) locations, approximately 568 thousand direct LP gas sales customers, and approximately 318 thousand electricity retail customers. The four businesses—Car Life, Home Life, Industrial, and Electricity—complement one another, creating a structure that mitigates earnings volatility caused by fluctuations in the prices of specific products. In FY2025 (ending March 2025), all segments remained profitable.
In the Electricity & Utility Business, the company made capital expenditures of ¥5,032 million in FY2025 (ending March 2025) to expand power generation facilities and heat source equipment. The number of electricity retail customers reached approximately 318 thousand, an increase of approximately 7 thousand from the end of the previous fiscal year. Through the accumulation of renewable energy assets, including ¥7,052 million in investments in equity-method affiliates, the company is building a stable earnings base for the future.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥1,012,018 million in FY2023 (ended March 2023) and has declined for four consecutive fiscal years, reaching ¥851,235 million in FY2026 (ending March 2026). Operating profit fell back to ¥24,146 million from ¥26,896 million in FY2025 (ended March 2025), which had marked five consecutive years of improvement and a record-high level. The main causes of the profit decline were: (1) a pullback from the strong supply-demand operations in the Industrial Business in the prior period; (2) the fading of one-time gains from solar power plants in the Electricity & Utility Business; and (3) a decrease in vehicle sales volume and gross profit per vehicle in the Car Life Business. As external factors, lower selling prices due to falling crude oil prices and market fluctuations stemming from geopolitical risk also weighed on revenue. On the other hand, cash flow from operating activities increased significantly year on year to ¥45,071 million, and free cash flow stood at ¥30,149 million, indicating that financial strength has been maintained.
Growth Strategy
Under ENEX2030, the company is executing ¥210.0 billion in new strategic investments, targeting net income of ¥20.0 billion or more by 2030
The company is promoting a shift away from dependence on petroleum sales toward multi-functional CS combining EV charging, car sharing, and lifestyle services. Improving the earnings structure of the Automobile Dealer Business, centered on the Osaka Car Life Group, also remains a challenge. In FY2026 (ending March 2026), the number of CS locations decreased to 1,496, underscoring the need to accelerate the qualitative transformation.
The company continues to acquire new high-voltage electricity contracts (customer count up approximately 7,000 from the previous fiscal year-end to approximately 318,000) and to actively invest in renewable energy assets (capital expenditure of ¥5,032 million). It is also diversifying its earnings base through expanded investment in equity-method affiliates (¥7,052 million). Efforts continue to build a stable earnings base following the falloff of one-time gains recorded in the prior fiscal year.
The company is promoting continued strength in industrial gas sales, the acquisition of new asphalt business rights, and expansion of next-generation energy products such as AdBlue®, renewable fuels, and GTL fuel. In FY2026 (ending March 2026), profit declined due to a reversal in supply-demand operations, but industrial gas remained strong. Equity in earnings of affiliates rose ¥189 million year on year to ¥662 million, reflecting steady accumulation of investment returns.
The company is implementing a progressive dividend policy during the medium-term management plan period (FY2025-FY2026). With an annual dividend per share floor of ¥62, the dividend is set at ¥66 for FY2026 (ending March 2026) and forecast at ¥68 for FY2027 (ending March 2027), continuing the trend of increases. While placing strong emphasis on a consolidated dividend payout ratio of 40% or more, the company aims to secure funds for business investment while maintaining a sound financial base with a net DER of -0.11x.
Last updated: July 19, 2026