Cosmo Energy Holdings Co., Ltd. (TSE: 5021), one of Japan's major integrated oil and energy groups spanning refining, marketing, petrochemicals, and renewable energy, reported full-year results for the fiscal year ended March 31, 2026 on May 12, 2026. Consolidated revenue declined 4.4% year-on-year to ¥2,677,582 million — largely reflecting the pass-through effect of lower global crude oil prices on refined-product revenues — while the underlying profit improvement told a more constructive story. Operating profit rose 12.9% to ¥144,790 million, reversing the prior year's 14.0% decline, as inventory valuation gains and tighter cost discipline more than offset the revenue headwind. Ordinary profit edged down a modest 1.0% to ¥149,247 million, while net profit attributable to owners of the parent surged 28.4% to ¥74,023 million, recovering strongly from the ¥57,671 million recorded a year earlier. Earnings per share stood at ¥453.06 (adjusted for the 2-for-1 share split executed in October 2025).
Comprehensive income also improved markedly, more than doubling to ¥86,151 million (+81.5%), reflecting both the core earnings recovery and favourable movements in accumulated other comprehensive income items — including unrealised gains on securities and foreign currency translation adjustments tied to the group's overseas operations. Operating cash flow strengthened substantially to ¥213,737 million from ¥137,118 million the prior year, underlining the group's capacity to generate cash even in a softer revenue environment. The improvement in operating profit margin — from approximately 4.6% in FY2025 to 5.4% in FY2026 — reflects better inventory management and a partial rebound in refining economics after the prior year's compression.
Balance sheet reinforced as equity ratio ticks higher
Total consolidated assets rose modestly to ¥2,196,556 million at fiscal year-end, up from ¥2,156,605 million a year earlier, while net assets increased to ¥735,761 million from ¥707,477 million. The equity ratio improved to 27.6% from 27.1%, reflecting retained-earnings accretion and net asset appreciation — a gradual but consistent strengthening of the balance sheet for a capital-intensive refiner. Shareholders' equity (self-equity) stood at ¥606,220 million, up from ¥584,782 million, and book value per share rose to ¥3,817.76 from ¥3,537.69 (split-adjusted). On the cash side, the group ended the year with ¥81,770 million in cash and equivalents, up from ¥34,905 million, after investing activities consumed ¥84,699 million and financing activities used ¥81,934 million.
Dividend set at ¥90 year-end after mid-year split; FY2027 guided at ¥165 annual
The dividend situation for FY2026 was shaped by the October 2025 2-for-1 stock split. The interim dividend of ¥150.00 was declared before the split on a pre-split basis; the year-end dividend of ¥90.00 per share (post-split) was declared for the period ended March 2026 and is payable in June 2026. The total annual payout amounted to ¥26,751 million, representing a payout ratio of 36.4% on a split-adjusted basis (assuming ¥165 annual dividend equivalent). For FY2027, the company projects an annual dividend of ¥165 per share (¥75 interim + ¥90 year-end), implying a projected payout ratio of 59.6% against the reduced earnings guidance — demonstrating a commitment to shareholder returns even as profits are expected to decline.
FY2027 guidance flags sharp profit retreat on weaker refining economics
Cosmo Energy's outlook for FY2027 (Apr 2026–Mar 2027) reflects the challenging environment facing Japanese oil refiners as global crude oil prices soften and domestic refining margins normalise from elevated levels. The company guides full-year revenue of ¥2,870,000 million (+7.2%) — a volume-driven top-line gain — alongside a steep 29.6% decline in operating profit to ¥102,000 million. Ordinary profit is expected to fall 22.9% to ¥115,000 million, and net profit attributable to owners is forecast to drop 40.6% to ¥44,000 million, with EPS guided at ¥277.10. The divergence between a rising top line and sharply falling profits reflects margin compression in the refining segment, the likely absence of inventory valuation gains that boosted FY2026, and increased depreciation and investment costs tied to the group's ongoing energy transition strategy, which includes expanding its wind power and decarbonisation-related businesses. Investors will focus on whether the group's renewable energy segment can provide meaningful earnings diversification as the core refining operation faces structural headwinds.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 2,677,582 | 2,799,947 | −4.4% |
| Operating profit (¥ million) | 144,790 | 128,249 | +12.9% |
| Ordinary profit (¥ million) | 149,247 | 150,758 | −1.0% |
| Net profit attrib. to owners (¥ million) | 74,023 | 57,671 | +28.4% |
| EPS (¥, post-split) | 453.06 | 336.39 | +34.7% |
| Comprehensive income (¥ million) | 86,151 | 47,467 | +81.5% |
| Operating CF (¥ million) | 213,737 | 137,118 | +55.9% |
| Total assets (¥ million) | 2,196,556 | 2,156,605 | +1.9% |
| Net assets (¥ million) | 735,761 | 707,477 | +4.0% |
| Equity ratio | 27.6% | 27.1% | +0.5pp |
| Book value per share (¥, post-split) | 3,817.76 | 3,537.69 | +7.9% |
| Year-end dividend (¥, post-split) | 90.00 | 180.00 | — |
| FY2027 guidance — revenue (¥ million) | 2,870,000 | — | +7.2% |
| FY2027 guidance — operating profit (¥ million) | 102,000 | — | −29.6% |
| FY2027 guidance — ordinary profit (¥ million) | 115,000 | — | −22.9% |
| FY2027 guidance — net profit (¥ million) | 44,000 | — | −40.6% |
| FY2027 guidance — EPS (¥) | 277.10 | — | — |
| FY2027 dividend forecast (¥ annual) | 165 | — | — |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.