Energy & ChemicalsThin moat

ITOCHU (8001) — moat facet

Energy & Chemicals has declined for two years, and this year's jump is mostly one sale.

Energy & Chemicals earned ¥91.7 billion in the year to March 2024, ¥78.6 billion in 2025 and ¥69.3 billion in 202612. Its revenue was ¥3,069.6 billion3, a margin of about 2.3%4, and its assets ¥1,819.4 billion, earning about 3.8%5.

Energy & Chemicals, yr to Mar 2026 (¥ bn)42.3Chemicals22.2Energy4.8Power & environmentITOCHU results presentation, May 2026
Chemicals earn twice as much as energy.

Energy earned ¥22.2 billion, chemicals ¥42.3 billion and power and environmental solutions ¥4.8 billion6. ITOCHU ENEX, 55.7% owned, contributed ¥9.0 billion; C.I. TAKIRON ¥6.2 billion; ITOCHU CHEMICAL FRONTIER ¥9.5 billion; and LNG dividends ¥3.3 billion7.

The first quarter of the current year earned ¥64.3 billion against ¥19.5 billion8, including the ¥34.0 billion CIECO Azer sale gain9, and the plan was raised to ¥111.5 billion10.

The measure is the division's profit without the sale. Oil and gas output is planned to fall to 17 thousand barrels a day11; the chemicals business has to carry the division.

Moat trajectory: Narrowing

Down from ¥91.7 billion to ¥69.3 billion; this year's plan includes a sale gain.

The number that tests this moat
Reported
Energy & Chemicals net profit
¥69.3bn against ¥78.6bn and ¥91.7bn

Two years of decline; the current year's ¥111.5 billion plan includes the CIECO Azer gain.

Source: ITOCHU financial results, year to March 2026 ↗
References
  1. ReportedEnergy & Chemicals earned ¥91.7 billion in the year to March 2024, ¥78.6 billion in 2025 and ¥69.3 billion in 2026.
    ITOCHU Corporation, Financial Information Report 2025 - segment information for the years to March 2025 and 2024, and the DESCENTE tender offer. — FY to March 2025 · publ. 2025 · source ↗
  2. ReportedEnergy & Chemicals earned ¥91.7 billion in the year to March 2024, ¥78.6 billion in 2025 and ¥69.3 billion in 2026.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  3. ReportedIts revenue was ¥3,069.6 billion, a margin of about 2.3%, and its assets ¥1,819.4 billion, earning about 3.8%.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  4. Moat Explorer calcIts revenue was ¥3,069.6 billion, a margin of about 2.3%, and its assets ¥1,819.4 billion, earning about 3.8%.
    Moat Explorer calculation from ITOCHU's reported figures. Trailing twelve months to June 2026: net profit 900.3 - 283.9 + 293.8 = 910.1; revenue 14,823.1 - 3,558.9 + 3,875.9 = 15,140.1; EPS 128.00 - 40.10 + 42.02 = 129.92. Market value at 24 September 2026: 6,993,053,267 shares x ¥2,220.5 = ¥15.53 trillion. P/E at March year-end: market value over net profit, e.g. 13,802 / 900.3 = 15.3 (2026), 6,090 / 820.3 = 7.4 (2022), 3,046 / 500.5 = 6.1 (2019). Non-resource share of profit: 774.7 / (774.7 + 133.3) = 85%. Segment net profit over segment assets, year to March 2026: Machinery 155.6 / 2,603.5 = 6.0%; Metals & Minerals 143.5 / 1,793.4 = 8.0%; ICT & Financial 93.0 / 1,577.2 = 5.9%; Food 92.1 / 2,403.4 = 3.8%; Energy & Chemicals 69.3 / 1,819.4 = 3.8%; General Products & Realty 60.8 / 1,628.7 = 3.7%; The 8th 45.0 / 2,197.3 = 2.0%; Textile 43.3 / 751.9 = 5.8%. Segment net margin on revenue: Food 92.1 / 5,134.2 = 1.8%; Energy & Chemicals 69.3 / 3,069.6 = 2.3%; Machinery 155.6 / 1,500.6 = 10.4%; Metals & Minerals 143.5 / 1,231.5 = 11.7%. Berkshire's market value over cost: 8,886 / 4,165 = 2.13 times; dividend on cost 181 / 4,165 = 4.3%. Self-tender: 82,735,750 x ¥1,813 = about ¥150.0 billion. Net profit growth since the year to March 2016: 900.3 / 240.4 = 3.7 times. Dividend growth: 42.0 / 10.0 = 4.2 times (split-adjusted). ROE spread over the company's cost of capital: 14.6 - 8 = 6.6 points. Equity growth: 6,590.0 / 5,755.1 = 1.15. Stake in DENTSU SOKEN at the tender price: ¥215.2 billion for 38%. ACG profit target over investment: ¥50 billion is the aerospace target, about ¥310 billion the ACG investment. Berkshire's stake at ¥2,220.5: 704,799,500 x 2,220.5 = about ¥1.565 trillion. ITOCHU over Marubeni net profit: 900.3 / 543.9 = 1.66. 8% hurdle on the CSN Mineração additional investment: 0.08 x 119.2 = 9.5. 8% hurdle on ¥215.2 billion: about ¥17.2 billion. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in ITOCHU's financial statements, results decks and market data; operands shown in the source line.
  5. Moat Explorer calcIts revenue was ¥3,069.6 billion, a margin of about 2.3%, and its assets ¥1,819.4 billion, earning about 3.8%.
    Moat Explorer calculation from ITOCHU's reported figures. Trailing twelve months to June 2026: net profit 900.3 - 283.9 + 293.8 = 910.1; revenue 14,823.1 - 3,558.9 + 3,875.9 = 15,140.1; EPS 128.00 - 40.10 + 42.02 = 129.92. Market value at 24 September 2026: 6,993,053,267 shares x ¥2,220.5 = ¥15.53 trillion. P/E at March year-end: market value over net profit, e.g. 13,802 / 900.3 = 15.3 (2026), 6,090 / 820.3 = 7.4 (2022), 3,046 / 500.5 = 6.1 (2019). Non-resource share of profit: 774.7 / (774.7 + 133.3) = 85%. Segment net profit over segment assets, year to March 2026: Machinery 155.6 / 2,603.5 = 6.0%; Metals & Minerals 143.5 / 1,793.4 = 8.0%; ICT & Financial 93.0 / 1,577.2 = 5.9%; Food 92.1 / 2,403.4 = 3.8%; Energy & Chemicals 69.3 / 1,819.4 = 3.8%; General Products & Realty 60.8 / 1,628.7 = 3.7%; The 8th 45.0 / 2,197.3 = 2.0%; Textile 43.3 / 751.9 = 5.8%. Segment net margin on revenue: Food 92.1 / 5,134.2 = 1.8%; Energy & Chemicals 69.3 / 3,069.6 = 2.3%; Machinery 155.6 / 1,500.6 = 10.4%; Metals & Minerals 143.5 / 1,231.5 = 11.7%. Berkshire's market value over cost: 8,886 / 4,165 = 2.13 times; dividend on cost 181 / 4,165 = 4.3%. Self-tender: 82,735,750 x ¥1,813 = about ¥150.0 billion. Net profit growth since the year to March 2016: 900.3 / 240.4 = 3.7 times. Dividend growth: 42.0 / 10.0 = 4.2 times (split-adjusted). ROE spread over the company's cost of capital: 14.6 - 8 = 6.6 points. Equity growth: 6,590.0 / 5,755.1 = 1.15. Stake in DENTSU SOKEN at the tender price: ¥215.2 billion for 38%. ACG profit target over investment: ¥50 billion is the aerospace target, about ¥310 billion the ACG investment. Berkshire's stake at ¥2,220.5: 704,799,500 x 2,220.5 = about ¥1.565 trillion. ITOCHU over Marubeni net profit: 900.3 / 543.9 = 1.66. 8% hurdle on the CSN Mineração additional investment: 0.08 x 119.2 = 9.5. 8% hurdle on ¥215.2 billion: about ¥17.2 billion. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in ITOCHU's financial statements, results decks and market data; operands shown in the source line.
  6. ReportedEnergy earned ¥22.2 billion, chemicals ¥42.3 billion and power and environmental solutions ¥4.8 billion.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - net profit, core profit and extraordinary items by segment, investment and exit, and the management plan for the year to March 2027. — FY to March 2026 · publ. 14 May 2026 · source ↗
  7. ReportedITOCHU ENEX, 55.7% owned, contributed ¥9.0 billion; C.I. TAKIRON ¥6.2 billion; ITOCHU CHEMICAL FRONTIER ¥9.5 billion; and LNG dividends ¥3.3 billion.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - shareholder returns (dividends, buybacks and payout), ROE, leverage and share-price performance against TOPIX. — FY to March 2026 · publ. 14 May 2026 · source ↗
  8. ReportedThe first quarter of the current year earned ¥64.3 billion against ¥19.5 billion, including the ¥34.0 billion CIECO Azer sale gain, and the plan was raised to ¥111.5 billion.
    ITOCHU Corporation, Consolidated Financial Results for the three months ended June 30, 2026 (IFRS) - revenues, trading income, equity earnings, net profit, segment results, the balance sheet and the ¥300 billion buyback. — April-June 2026 · publ. 6 August 2026 · source ↗
  9. ReportedThe first quarter of the current year earned ¥64.3 billion against ¥19.5 billion, including the ¥34.0 billion CIECO Azer sale gain, and the plan was raised to ¥111.5 billion.
    ITOCHU Corporation, FY2026 first-quarter business results summary - core profit, extraordinary items, group-company results, investments, the Aviation Capital Group agreement and the revised segment plan. — April-June 2026 · publ. 7 August 2026 · source ↗
  10. ReportedThe first quarter of the current year earned ¥64.3 billion against ¥19.5 billion, including the ¥34.0 billion CIECO Azer sale gain, and the plan was raised to ¥111.5 billion.
    ITOCHU Corporation, FY2026 first-quarter business results summary - core profit, extraordinary items, group-company results, investments, the Aviation Capital Group agreement and the revised segment plan. — April-June 2026 · publ. 7 August 2026 · source ↗
  11. ReportedOil and gas output is planned to fall to 17 thousand barrels a day; the chemicals business has to carry the division.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - resource and non-resource profit, equity production volumes and sensitivities. — FY to March 2026 · publ. 14 May 2026 · source ↗
Sources
Generated September 24, 2026