Energy Transformation BusinessNarrow moat

Sumitomo Corporation (8053) — moat facet

Sumitomo's power segment is its largest earner and plans to earn more by selling some of its plants.

1. ReportedEnergy Transformation Business earned ¥84.3 billion in the year to March 2024, ¥96.4 billion in 2025 and ¥102.4 billion in 2026.
   Sumitomo Corporation, Consolidated Financial Results for the year ended March 31, 2025 (IFRS) - including restated segment information for the year to March 2024. — FY to March 2025 · publ. May 2025 · source ↗
2. ReportedEnergy Transformation Business earned ¥84.3 billion in the year to March 2024, ¥96.4 billion in 2025 and ¥102.4 billion in 2026.
   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 ↗
3. ReportedIts revenue was ¥700.0 billion and its assets ¥1,977.8 billion, a return on assets of about 5.2%, and its return on invested capital 10%.
   Sumitomo Corporation, Annual Financial Report for the year to March 2026 - consolidated financial statements and notes, including the SCSK acquisition accounting. — FY to March 2026 · publ. June 2026 · source ↗
4. Moat Explorer calcIts revenue was ¥700.0 billion and its assets ¥1,977.8 billion, a return on assets of about 5.2%, and its return on invested capital 10%.
   Moat Explorer calculation from Sumitomo Corporation's reported figures. Per-share figures divided by four for the 1 July 2026 split: EPS 499.09 / 4 = 124.77, 463.66 / 4 = 115.92; DPS 150 / 4 = 37.5. Trailing twelve months to June 2026: profit 600.3 - 170.9 + 190.1 = 619.5; revenue 7,337.3 - 1,787.9 + 1,949.4 = 7,498.8; EPS 124.77 - 35.29 + 39.95 = 129.43. Market value at March year-ends (close x shares issued, including treasury shares): 1,118.5 x 1,250.6m = ¥1,399bn (2016), 5,780 x 1,211.4m = ¥7,002bn (2026); P/E 1,399 / 74.5 = 18.8 and 7,002 / 600.3 = 11.7. Trailing P/E 8.51 trillion / 619.5 billion = 13.7; P/S 8.51 / 7.4988 = 1.13. Revenue by region, year to March 2026: Japan 2,840,605 / 7,337,259 = 38.7%; United States 1,391,341 / 7,337,259 = 19.0%. Equity-method profit over profit before tax: 266.7 / 702.0 = 38%. Mineral share of underlying profit: 99 / 524 = 19%. Profit growth over two years: 600.3 / 386.4 = 1.55. Profit against the plan target: 630.0 / 650.0 = 97%. Lifestyle and corporate band: 14.1 - 4.5 = 9.6 (2025) and -3.6 + 33.5 = 29.9 (2026). Largest four segments, year to March 2026: 102.4 + 88.9 + 82.3 + 81.5 = 355.1, 59% of 600.3. Berkshire market value over cost: 4,022 / 1,907 = 2.1 times; dividends on cost 102 / 1,907 = 5.3%. SCSK premium: 5,700 / 4,359 - 1 = 30.8%. Share count since 2013: 1,195.1m pre-split equivalent against 1,250.6m = -4.4%. Buyback: 47.65m shares against 4,780.5m issued = 1.0%. Q1 progress: 190.1 / 630.0 = 30%. Segment return on assets, year to March 2026: Energy Transformation 102.4 / 1,977.8 = 5.2%; Steel 74.3 / 1,199.5 = 6.2%; Automotive 63.2 / 861.7 = 7.3%; Transportation & Construction Systems 88.9 / 1,874.9 = 4.7%; Diverse Urban Development 81.5 / 1,792.9 = 4.5%; Media & Digital 51.2 / 1,492.7 = 3.4%; Mineral Resources 82.3 / 2,463.7 = 3.3%; Chemical Solutions 26.5 / 942.7 = 2.8%. Dividend per share, split-adjusted: 70 / 4 = 17.5 (2021) to 150 / 4 = 37.5 (2026) and 40 forecast; 37.5 / 17.5 = 2.1 times. Commercial Aviation underlying: 38.7 / 19.7 = 1.96 times. Eight growth areas: 382.7 / 279.9 - 1 = 36.7%. Low-ROIC capital: ¥3.0 bn / ¥1 trillion = 0.3%. Commercial Aviation forecast increase: 38.7 - 19.7 = 19.0; 19.0 / 330 = 5.8%. SCSK charge against comprehensive income: 722.7 / 1,029.6 = 70%. SCSK price rise: (5,700 - 5,050) x 154.7m = ¥100.6bn. Construction systems margin: 18.8 / 718.3 = 2.6%. Planned investment raised from 1.8 to 3.0 trillion = +67%. Low-return plus asset-turnover capital: (1.0 + 0.7) / 9.44 = 18%. Eight growth areas forecast increase: 382.7 - 305.0 = 77.7, against 15.0 added in the latest year. Forecast dividends over forecast profit: 191.0 / 630.0 = 30.3%. Value against the big three: 8.51 / 17.62 = 0.48, 8.51 / 14.63 = 0.58; their value over Sumitomo's 1.72-2.07; profit 619.05 / 936.38 = 0.66 and 619.05 / 895.86 = 0.69. Low-ROIC capital against total invested capital: 1.0 / 9.44 = 10.6%. — FY to March 2026 · publ. September 2026 · source ↗
   Method: Arithmetic on figures reported in Sumitomo Corporation's results, presentations, annual financial report and market data; operands shown in the source line.
5. ReportedIts revenue was ¥700.0 billion and its assets ¥1,977.8 billion, a return on assets of about 5.2%, and its return on invested capital 10%.
   Sumitomo Corporation, results presentation for the year to March 2026 - return on invested capital and invested capital by segment, the eight growth areas and the low-growth, low-return capital. — FY to March 2026 · publ. May 2026 · source ↗
6. ReportedThe segment includes overseas power plants, which contributed ¥73.0 billion; domestic electricity retail, ¥22.0 billion; global gas and power trading, ¥28.0 billion; and LNG Japan, a 50% venture, ¥7.9 billion.
   Sumitomo Corporation, results presentation for the year to March 2026 - Energy Transformation: overseas power, domestic electricity retail, gas and power trading and LNG Japan. — FY to March 2026 · publ. May 2026 · source ↗
7. ReportedIts business units cover energy innovation, Japanese and overseas energy solutions, Indonesia, the gas value chain and maritime energy.
   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 ↗
8. ReportedThe forecast for the current year is ¥115.0 billion, including gains from selling power assets, which the company now counts as underlying profit.
   Sumitomo Corporation, results presentation for the year to March 2026 - Energy Transformation: overseas power, domestic electricity retail, gas and power trading and LNG Japan. — FY to March 2026 · publ. May 2026 · source ↗
9. ReportedThe forecast for the current year is ¥115.0 billion, including gains from selling power assets, which the company now counts as underlying profit.
   Sumitomo Corporation, results presentation for the year to March 2026 - Energy Transformation: overseas power, domestic electricity retail, gas and power trading and LNG Japan. — FY to March 2026 · publ. May 2026 · source ↗
10. ReportedThe first quarter earned ¥32.6 billion against ¥24.0 billion, including a Belgian offshore wind sale.
    Sumitomo Corporation, results presentation for April-June 2026 - progress against the forecast, one-time items, the Madagascar sale, investment and the balance sheet. — April-June 2026 · publ. 31 July 2026 · source ↗
11. ReportedThe segment's underlying profit was ¥88.0 billion in the latest year and is forecast at ¥115.0 billion, the same as the headline forecast because sale gains now count as underlying.
    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 ↗
12. ReportedThe segment's underlying profit was ¥88.0 billion in the latest year and is forecast at ¥115.0 billion, the same as the headline forecast because sale gains now count as underlying.
    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 ↗
13. ReportedThe company's LNG equity production is forecast at 510 thousand tonnes.
    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 ↗
14. ReportedReaching ¥115.0 billion with the Asian plants earning less depends on sales and renewals elsewhere.
    Sumitomo Corporation, results presentation for the year to March 2026 - Energy Transformation: overseas power, domestic electricity retail, gas and power trading and LNG Japan. — FY to March 2026 · publ. May 2026 · source ↗

• Sumitomo Corporation Annual Financial Report 2026