Penske, Trucks and the Businesses Others RunNarrow moat

Mitsui & Co. (8031) — moat facet

Mitsui's steadiest profit comes from American trucks and cars and Brazilian gas pipes, run by partners.

Mitsui's second-largest segment makes most of its money through other people's companies. Machinery & Infrastructure earned ¥225.9 billion in the latest year, and its share of profit from equity-method investees was ¥239.8 billion1: more than the segment's entire net profit. It is the purest example of Mitsui as an investor rather than a trader.

Machinery & Infrastructure contributors, yr to Mar 2026 (¥ bn)Americas vehicles and trucks48.4IPP businesses28.8Construction machinery27.7Shipping21.5FPSO/FSO leasing20.2Gas infrastructure17.7Mitsui Integrated Report 2026, major affiliates by segment
Cars, trucks, power and pipes, mostly run by partners.

The largest pieces are American. Mitsui has owned part of Penske Automotive Group since February 20012 and holds 20.3%, which contributed ¥27.1 billion3. It also owns the business that holds its interest in Penske Truck Leasing, which contributed ¥18.8 billion4, a fleet of approximately 390,000 trucks5. The company estimates its mobility business earned approximately ¥180 billion in the latest year6.

The rest is infrastructure. Independent power producers contributed ¥28.8 billion, gas distribution in Brazil, Mexico and the United States ¥17.7 billion, FPSO and FSO leasing ¥20.2 billion, and shipping ¥21.5 billion7. The Brazilian gas distributors supply approximately 25% of the country's gas demand across twelve states8, and 97% of Mitsui's power capacity is sold under long-term contracts9.

What these businesses have in common is contracted or regulated income and partners who run them. The segment's return on its ¥4,427.3 billion of assets was about 5.1%1011, lower than resources but far steadier: its profit was ¥248.7 billion, ¥232.9 billion and ¥225.9 billion over three years1213.

The segment's core operating cash flow was ¥184.1 billion and its net investment close to zero, minus ¥0.4 billion14: it is a business that produces cash without asking for much. That is the opposite of the resources segment, where net investment was ¥827.9 billion15. The Penske proposal, if completed, would change that for a year.

The moat is narrow: long-held stakes in businesses with regulated or contracted cash flows, built through relationships that take decades. The measure is the segment's profit. Its plan for the current year, on a new basis that includes power, is ¥240.0 billion16.

Moat trajectory: Holding steady

Profit has held between ¥226 billion and ¥249 billion for three years.

The number that tests this moat
Reported
Machinery & Infrastructure net profit, latest year
¥225.9bn (equity-method profit ¥239.8bn)

The steadiest segment; its new-basis plan is ¥240.0 billion.

Source: Mitsui & Co. Integrated Report 2026, data ↗
Aspects of the moat
DIG DEEPER 01
Penske Automotive: A 20% Stake Since 2001
Mitsui has owned a fifth of Penske's car dealerships for twenty-five years and now wants more of them.
DIG DEEPER 02
Penske Truck Leasing: About 390,000 Trucks
Mitsui owns part of America's largest truck lessor, and its profit has fallen by a third with freight.
DIG DEEPER 03
Power Under Long-Term Contract
Almost all of Mitsui's power is sold before it is generated.
DIG DEEPER 04
Brazil's Gas Distributors
Mitsui distributes a quarter of Brazil's gas under state concessions.
⚠ Threats to the moat
⚠ THREAT 01
Minority Stakes, Partners' Decisions
Mitsui's steadiest segment runs almost entirely through companies it does not control.
⚠ THREAT 02
Mainstream: Renewables That Keep Writing Down
Mitsui has written down the same renewables developer three years running.
References
  1. ReportedMachinery & Infrastructure earned ¥225.9 billion in the latest year, and its share of profit from equity-method investees was ¥239.8 billion: more than the segment's entire net profit.
    Mitsui & Co. Integrated Report 2026, data section - results by operating segment: gross profit, equity-method profit, dividend income, core operating cash flow and total assets. — FY to March 2022-2026 · publ. 2026 · source ↗
  2. ReportedMitsui has owned part of Penske Automotive Group since February 2001 and holds 20.3%, which contributed ¥27.1 billion.
    Mitsui & Co., Annual Securities Report for the year to March 2026 (English) - company history, employees, share price history, total shareholder return, equity production, the revenue of the Singapore trading subsidiary, competition and the Arctic LNG 2 guarantees. — FY to March 2026 · publ. 12 August 2026 · source ↗
  3. ReportedMitsui has owned part of Penske Automotive Group since February 2001 and holds 20.3%, which contributed ¥27.1 billion.
    Mitsui & Co. Integrated Report 2026, data section - the major affiliates by segment with ownership and share of profit. — FY to March 2022-2026 · publ. 2026 · source ↗
  4. ReportedIt also owns the business that holds its interest in Penske Truck Leasing, which contributed ¥18.8 billion, a fleet of approximately 390,000 trucks.
    Mitsui & Co. Integrated Report 2026, data section - the major affiliates by segment with ownership and share of profit. — FY to March 2022-2026 · publ. 2026 · source ↗
  5. ReportedIt also owns the business that holds its interest in Penske Truck Leasing, which contributed ¥18.8 billion, a fleet of approximately 390,000 trucks.
    Mitsui & Co. Integrated Report 2026, At a Glance - consolidated subsidiaries and equity-method investees, offices, share of profit by region and market positions. — 2026 · publ. 2026 · source ↗
  6. ReportedThe company estimates its mobility business earned approximately ¥180 billion in the latest year.
    Mitsui & Co. Integrated Report 2026, Our Edge - profit of the iron ore, LNG, mobility and protein and healthcare businesses, the iron ore and LNG growth paths, IHH's hospitals and market positions. — 2026 · publ. 2026 · source ↗
  7. ReportedIndependent power producers contributed ¥28.8 billion, gas distribution in Brazil, Mexico and the United States ¥17.7 billion, FPSO and FSO leasing ¥20.2 billion, and shipping ¥21.5 billion.
    Mitsui & Co. Integrated Report 2026, data section - the major affiliates by segment with ownership and share of profit. — FY to March 2022-2026 · publ. 2026 · source ↗
  8. ReportedThe Brazilian gas distributors supply approximately 25% of the country's gas demand across twelve states, and 97% of Mitsui's power capacity is sold under long-term contracts.
    Mitsui & Co. Integrated Report 2026, data section - the major affiliates by segment with ownership and share of profit. — FY to March 2022-2026 · publ. 2026 · source ↗
  9. ReportedThe Brazilian gas distributors supply approximately 25% of the country's gas demand across twelve states, and 97% of Mitsui's power capacity is sold under long-term contracts.
    Mitsui & Co., results presentation for the year to March 2026 - producing assets with partners and stakes, LNG projects, affiliates and power contracts. — FY to March 2026 · publ. 1 May 2026 · source ↗
  10. ReportedThe segment's return on its ¥4,427.3 billion of assets was about 5.1%, lower than resources but far steadier: its profit was ¥248.7 billion, ¥232.9 billion and ¥225.9 billion over three years.
    Mitsui & Co. Integrated Report 2026, data section - results by operating segment: gross profit, equity-method profit, dividend income, core operating cash flow and total assets. — FY to March 2022-2026 · publ. 2026 · source ↗
  11. Moat Explorer calcThe segment's return on its ¥4,427.3 billion of assets was about 5.1%, lower than resources but far steadier: its profit was ¥248.7 billion, ¥232.9 billion and ¥225.9 billion over three years.
    Moat Explorer calculation from Mitsui & Co.'s reported figures. Resource share of profit: (253.6 + 164.2) / 834.0 = 50.1% (2026), 51.0% (2025), 58.0% (2024). Iron ore business share: 262.2 / 834.0 = 31.4%. Trailing twelve months to June 2026: net income 833,971 - 191,647 + 294,052 = 936,376; revenue 13,995.2 - 3,299.9 + 4,347.6 = 15,042.9; EPS 291.12 - 66.68 + 103.73 = 328.17. P/S at March year-ends: 5,340.8 / 11,757.6 = 0.45 (2022), 0.44 (2023), 0.80 (2024), 0.55 (2025), 16,969.0 / 13,995.2 = 1.21 (2026). Share price change since March: 5,033 / 5,959 - 1 = -15.5%. Shares issued, split-adjusted: 3,284.7 million (March 2022) to 2,864.7 million (March 2026) = -12.8%. Equity-method profit and dividend income: 447.4 + 178.7 = 626.1, 57.6% of profit before tax of 1,087.1. Segment profit over segment assets, year to March 2026: Mineral & Metal Resources 253.6 / 4,313.2 = 5.9%; Machinery & Infrastructure 225.9 / 4,427.3 = 5.1%; Energy 164.2 / 4,181.4 = 3.9%; Chemicals 67.5 / 2,241.8 = 3.0%; Lifestyle 52.0 / 3,091.1 = 1.7%; Innovation & Corporate Development 59.0 / 2,655.3 = 2.2%; Iron & Steel Products 18.9 / 862.4 = 2.2%. Innovation & Corporate Development including other and adjustments: 59.0 + 20.7 - 27.7 = 51.9 (2026), 87.3 - 42.8 + 21.5 = 65.9 (2025), 53.8 + 5.6 - 5.9 = 53.6 (2024). A $10 move in iron ore: 10 x ¥3.0 billion = ¥30 billion, 3.3% of the ¥920 billion forecast. Berkshire's market value over cost: 8,785 / 3,490 = 2.52 times; dividend on cost 201 / 3,490 = 5.8%. Progress against guidance: 294.1 / 920.0 = 32.0%. Profit growth since the year to March 2016's loss: from -83.4 to 834.0. Resource profits: 335.1 + 281.7 = 616.8 (2024) and 253.6 + 164.2 = 417.8 (2026). Three largest segments: (253.6 + 225.9 + 164.2) / 841.1 = 76.5%. Energy Trading Singapore: 1,986,458 / 13,995,222 = 14.2%. First-quarter one-time gains: (44.2 + 10.2) / 294.1 = 18.5%. Innovation & Corporate Development first quarter against plan: 65.2 / 70.0 = 93%. Arctic LNG 2 provision change: 66,109 - 57,759 = 8,350. A $1 move in US gas: 10 x ¥1.2 billion = ¥12 billion. Vale dividend: 35.0 / 59.6 - 1 = -41%; 43.5 / 35.0 - 1 = +24%. Truck leasing holding: 19.8 / 28.4 - 1 = -30%; 18.8 / 19.8 - 1 = -5%. Profit to the 2029 target: 1,100 / 834.0 = 1.32; to the 2031 vision: 1,400 / 834.0 = 1.68. Berkshire value over cost 2.52 and dividend yield on cost 5.8%. Ministers North at full production: 7% x 20 Mt = 1.4 Mt. Mainstream charges: 15.1 + 15.9 + 28.05 = 59.05. Vale dividend fall against segment profit: (59.6 - 35.0) / 285.4 = 8.6%. Mitsui against smaller houses: profit 936.4 / 619.1 = 1.51 and 936.4 / 575.9 = 1.63; value 14.63 / 8.51 = 1.72 and 14.63 / 8.09 = 1.81. Trailing P/E: 14.63 trillion / 936.4 billion = 15.6; P/S 14.63 / 15.043 = 0.97. Dividend growth: 115 / 27.5 = 4.2 times. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Mitsui & Co.'s results, integrated report, securities report and market data; operands shown in the source line.
  12. ReportedThe segment's return on its ¥4,427.3 billion of assets was about 5.1%, lower than resources but far steadier: its profit was ¥248.7 billion, ¥232.9 billion and ¥225.9 billion over three years.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2025 (IFRS) - including segment information for the years to March 2025 and 2024. — FY to March 2025 · publ. May 2025 · source ↗
  13. ReportedThe segment's return on its ¥4,427.3 billion of assets was about 5.1%, lower than resources but far steadier: its profit was ¥248.7 billion, ¥232.9 billion and ¥225.9 billion over three years.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the consolidated statements of income, financial position and cash flows, segment information, dividends, buybacks and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  14. ReportedThe segment's core operating cash flow was ¥184.1 billion and its net investment close to zero, minus ¥0.4 billion: it is a business that produces cash without asking for much.
    Mitsui & Co. Integrated Report 2026, data section - results by operating segment: gross profit, equity-method profit, dividend income, core operating cash flow and total assets. — FY to March 2022-2026 · publ. 2026 · source ↗
  15. ReportedThat is the opposite of the resources segment, where net investment was ¥827.9 billion.
    Mitsui & Co. Integrated Report 2026, data section - results by operating segment: gross profit, equity-method profit, dividend income, core operating cash flow and total assets. — FY to March 2022-2026 · publ. 2026 · source ↗
  16. ReportedIts plan for the current year, on a new basis that includes power, is ¥240.0 billion.
    Mitsui & Co., Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the consolidated statements of income, financial position and cash flows, segment information, dividends, buybacks and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
Sources
Generated September 24, 2026