Japan’s Four Biggest Trading Houses Raise Profit Outlooks; Mitsubishi Unveils ¥1 Trillion Buyback

Japan’s major trading houses raised their profit outlooks on the back of higher copper prices and strong liquefied natural gas operations. Mitsubishi Corp. also outlined a share buyback of up to ¥1 trillion alongside what would be record net profit.

Four of Japan’s five major trading houses, excluding Itochu Corp., raised their net profit forecasts for the fiscal year ending March 2027, Nikkei reported on November 4. Net profit at all five companies rose by double digits in April through September from a year earlier.

Mitsubishi raised its full-year net profit forecast by ¥100 billion to ¥1.2 trillion. That would be up 50% from a year earlier and above the previous record of ¥1.1806 trillion set in the fiscal year ended March 2023. Improved profitability in its copper business and a return to the black at its Canadian LNG production project are set to support earnings. The company also lifted its projected return on equity to 12.7% from 11.5%.

Mitsui & Co. raised its net profit forecast by ¥130 billion to ¥1.05 trillion. It said businesses rebuilding LNG trading routes as Middle East tensions disrupt supply chains would add ¥40 billion to annual net profit. President Kenichi Hori said demand to strengthen companies’ ability to respond to change across industries would continue for the next several years.

Marubeni also raised its annual net profit forecast by ¥50 billion to ¥630 billion. That would mark a record high, up 16% from a year earlier. The company lifted its full-year dividend forecast to ¥125 a share from ¥115.

Marubeni President Masayuki Omoto said demand for transmission lines and cables needed for AI data centers is supporting strength in the copper market. He added that copper prices should remain firm over the medium to long term because supply growth is constrained by the difficulty of developing new mines.

Itochu, by contrast, left its full-year forecast unchanged, citing uncertainty in the US economy. First-half net profit reached 61% of its annual target, but the company kept a ¥40 billion buffer against a potential economic slowdown. President Keita Ishii said the outlook for interest rates and foreign exchange remained unclear after the midterm elections and that he is concerned about the US, which drives the global economy.