ITOCHU Corporation

First-half consolidated net profit increased 6%, or ¥25.5 billion, year over year to ¥438.4 billion, and core profit rose ¥12.5 billion to about ¥396 billion. Core profit in the non-resource sector increased ¥10 billion to ¥306 billion, while the resource sector increased ¥3 billion to ¥89.5 billion. Operating cash flows reached ¥578.6 billion, a record high, and core operating cash flows reached ¥513 billion, also an all-time high. Total shareholders’ equity rose by about ¥170 billion from the end of the prior fiscal year to ¥5.6 trillion, and NET DER improved to 0.47x. For the full year, Itochu kept the overall forecast unchanged at ¥880.0 billion, raised Textile by ¥40 billion to ¥73 billion, raised The 8th by ¥30 billion to ¥65 billion, and cut Metals & Minerals by ¥40 billion to ¥200 billion. The company reiterated a ¥200 per share dividend, a 50% total payout ratio, and ¥150 billion of share buybacks, with ¥71.5 billion completed by end-October.

Keita Ishii framed the first half as steady progress toward the annual target, emphasizing resilience in a volatile second quarter and the ability to offset weaker resource prices through non-resource strength, turnaround efforts, and asset replacement gains. He highlighted the first-half record in core operating cash flow, the high proportion of profitable group companies, and said the company will keep pushing growth investments under its new management policy, described as “brand new deal.” His tone was confident but measured, with repeated emphasis on discipline, resilience, and building the profit base for next fiscal year and beyond.

The financial commentary centered on cash generation, balance-sheet strength, and capital allocation. Management said operating cash flows hit ¥578.6 billion and core operating cash flows surpassed ¥500 billion for the first time at ¥513 billion, while total shareholders’ equity increased to ¥5.6 trillion and NET DER improved to 0.47x. They also noted ¥192 billion of net investment cash outflow, driven by WECARS, equity method investments in Machinery, and fixed-asset purchases, and said they will balance growth investments, shareholder returns, and interest-bearing debt control.

There was no separate analyst Q&A section in the transcript provided, so no analyst concerns or management responses were included. The main “questions” addressed were effectively management’s own guidance updates: Metals & Minerals was lowered because of falling iron ore prices and operational issues in coking coal, while Textile and The 8th were raised due to expected extraordinary gains. Management also explained that half the ¥150 billion buyback had already been completed by end-October.