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Sumitomo Corporation (8053) — moat facet

Sumitomo's steel segment earns 10% on its capital distributing tubes to energy companies and sheet to carmakers.

Steel earned ¥69.2 billion in the year to March 2024, ¥68.4 billion in 2025 and ¥74.3 billion in 202612. Its revenue was ¥1,454.2 billion, down from ¥1,742.5 billion two years earlier, and its assets ¥1,199.5 billion34, a return of about 6.2%5.

Steel net profit (¥ bn, years to March)-39.8202155.22022110.4202369.2202468.4202574.32026Loss shown as magnitude; Sumitomo results presentation, May 2026
From a loss to a peak and back to steady.

The segment distributes steel sheet to car and appliance makers through a worldwide network of steel service centres on a just-in-time basis6, and runs one of the world's largest oil country tubular goods distribution businesses, with partnerships with energy majors7. Its profit history is volatile: a loss of ¥39.8 billion in the year to March 2021 and ¥110.4 billion in 20238.

The forecast for the current year is ¥72.0 billion9, and the first quarter earned ¥20.1 billion against ¥18.8 billion10. The segment's return on invested capital was 10%11.

Its underlying profit was ¥66.0 billion in the latest year and is forecast at ¥68.0 billion12. The segment sold Sekal during the year13 and holds Edgen Group, whose contribution recovered from a loss of ¥1.4 billion to a profit of ¥1.8 billion14.

The measure is the segment's profit through the energy cycle. Tubular goods demand follows oil and gas drilling, which the Middle East conflict may lift.

Moat trajectory: Holding steady

Profit has held near ¥70 billion for three years.

The number that tests this moat
Reported
Steel segment profit, April-June 2026
¥20.1bn against ¥18.8bn

A steady start against a ¥72.0 billion forecast.

Source: Sumitomo Corporation first-quarter presentation, July 2026 ↗
References
  1. ReportedSteel earned ¥69.2 billion in the year to March 2024, ¥68.4 billion in 2025 and ¥74.3 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. ReportedSteel earned ¥69.2 billion in the year to March 2024, ¥68.4 billion in 2025 and ¥74.3 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 ¥1,454.2 billion, down from ¥1,742.5 billion two years earlier, and its assets ¥1,199.5 billion, a return of about 6.2%.
    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. ReportedIts revenue was ¥1,454.2 billion, down from ¥1,742.5 billion two years earlier, and its assets ¥1,199.5 billion, a return of about 6.2%.
    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 ↗
  5. Moat Explorer calcIts revenue was ¥1,454.2 billion, down from ¥1,742.5 billion two years earlier, and its assets ¥1,199.5 billion, a return of about 6.2%.
    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.
  6. ReportedThe segment distributes steel sheet to car and appliance makers through a worldwide network of steel service centres on a just-in-time basis, and runs one of the world's largest oil country tubular goods distribution businesses, with partnerships with energy majors.
    Sumitomo Corporation, Annual Financial Report for the year to March 2026 - business risks, including concentration, country and commodity risks and the Strait of Hormuz. — FY to March 2026 · publ. June 2026 · source ↗
  7. ReportedThe segment distributes steel sheet to car and appliance makers through a worldwide network of steel service centres on a just-in-time basis, and runs one of the world's largest oil country tubular goods distribution businesses, with partnerships with energy majors.
    Sumitomo Corporation, results presentation for the year to March 2026 - steel, chemicals, real estate and lifestyle businesses. — FY to March 2026 · publ. May 2026 · source ↗
  8. ReportedIts profit history is volatile: a loss of ¥39.8 billion in the year to March 2021 and ¥110.4 billion in 2023.
    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 ↗
  9. ReportedThe forecast for the current year is ¥72.0 billion, and the first quarter earned ¥20.1 billion against ¥18.8 billion.
    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 ↗
  10. ReportedThe forecast for the current year is ¥72.0 billion, and the first quarter earned ¥20.1 billion against ¥18.8 billion.
    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 return on invested capital was 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 ↗
  12. ReportedIts underlying profit was ¥66.0 billion in the latest year and is forecast at ¥68.0 billion.
    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 segment sold Sekal during the year and holds Edgen Group, whose contribution recovered from a loss of ¥1.4 billion to a profit of ¥1.8 billion.
    Sumitomo Corporation, results presentation for the year to March 2026 - cash allocation, asset replacement, shareholder returns and the financial-soundness target. — FY to March 2026 · publ. May 2026 · source ↗
  14. ReportedThe segment sold Sekal during the year and holds Edgen Group, whose contribution recovered from a loss of ¥1.4 billion to a profit of ¥1.8 billion.
    Sumitomo Corporation, results presentation for the year to March 2026 - cash allocation, asset replacement, shareholder returns and the financial-soundness target. — FY to March 2026 · publ. May 2026 · source ↗
Sources
Generated September 24, 2026