The Middle East CustomersThin moat

Sumitomo Corporation (8053) — moat facet

Sumitomo's Middle Eastern customers bought a quarter less last year, and the war has made this year uncertain.

Revenue from the Middle East and Africa was ¥485,892 million in the year to March 2025 and ¥365,372 million in the year to March 20261, a fall of about a quarter. Sumitomo's automotive businesses include Toyota businesses in Iraq and Libya2.

Middle East and Africa revenue (¥ bn, years to March)485.92025365.42026Sumitomo Annual Financial Report 2026
Down by a quarter.

The current year's forecast reflects the conflict. The company's results note that the military conflict involving the United States, Israel and Iran disrupted navigation through the Strait of Hormuz3, and its automotive forecast of ¥34.0 billion is about half the latest year's profit4. It built a ¥30.0 billion loss buffer into the group forecast5.

At the first quarter management said the impact had been much less than originally anticipated6.

The measure is regional revenue in the current year. A recovery would show the conflict's effect on customers passing.

Moat trajectory: Narrowing

Regional revenue fell by a quarter.

The number that tests this moat
Reported
Middle East and Africa revenue, latest year
¥365.4bn against ¥485.9bn

The region most exposed to the conflict; recovery would show customers returning.

Source: Sumitomo Corporation Annual Financial Report 2026 ↗
References
  1. ReportedRevenue from the Middle East and Africa was ¥485,892 million in the year to March 2025 and ¥365,372 million in the year to March 2026, a fall of about a quarter.
    Sumitomo Corporation, Annual Financial Report for the year to March 2026 - segment information and revenue by geography and type. — FY to March 2026 · publ. June 2026 · source ↗
  2. ReportedSumitomo's automotive businesses include Toyota businesses in Iraq and Libya.
    Sumitomo Corporation, results presentation for the year to March 2026 - leasing and aviation: SMFL, SMBC Aviation Capital, the lessor rankings, Air Lease and the automotive businesses. — FY to March 2026 · publ. May 2026 · source ↗
  3. ReportedThe company's results note that the military conflict involving the United States, Israel and Iran disrupted navigation through the Strait of Hormuz, and its automotive forecast of ¥34.0 billion is about half the latest year's profit.
    Sumitomo Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - results, segment profit, the financial position, dividends, the share split and the forecast for the year to March 2027. — FY to March 2026 · publ. May 2026 · source ↗
  4. ReportedThe company's results note that the military conflict involving the United States, Israel and Iran disrupted navigation through the Strait of Hormuz, and its automotive forecast of ¥34.0 billion is about half the latest year's profit.
    Sumitomo Corporation, results presentation for the year to March 2026 - consolidated results, underlying profit, forecasts, sensitivities and the loss buffer. — FY to March 2026 · publ. May 2026 · source ↗
  5. ReportedIt built a ¥30.0 billion loss buffer into the group forecast.
    Sumitomo Corporation, results presentation for the year to March 2026 - consolidated results, underlying profit, forecasts, sensitivities and the loss buffer. — FY to March 2026 · publ. May 2026 · source ↗
  6. ReportedAt the first quarter management said the impact had been much less than originally anticipated.
    Sumitomo Corporation, Q&A of the April-June 2026 results - the Middle East impact and the Energy Transformation earnings level. — April-June 2026 · publ. 2026 · source ↗
Sources
Generated September 24, 2026