⚠ The Rest of the Auto Business SwingsModerate threat

Sumitomo Corporation (8053) — threat to the moat

Sumitomo's automotive profit halves this year once last year's one-off gain drops out.

Around the steady car leasing business, Sumitomo's automotive segment is volatile. It earned ¥63.2 billion in the year to March 2026, including a gain of about ¥28 billion on selling Midas and a write-off of about ¥10 billion on non-performing loans in Indonesian auto finance1. The forecast for the current year is ¥34.0 billion2, and the first quarter earned ¥11.7 billion against ¥39.7 billion3.

Automotive segment profit (¥ bn, years to March)51.2202563.2202634.02027 forecast2026 includes about ¥28bn Midas gain; Sumitomo results presentation, May 2026
A one-off gain, then a halving.

The company cites intensified competition in key markets4, and the automotive businesses include Toyota businesses in Iraq, Libya, Central Asia and Ukraine5.

Car leasing is insulated from most of that. It is not insulated from the level of corporate investment in Japan.

The measure is the automotive forecast. Reaching ¥34.0 billion without one-off gains would give the segment a steadier base than the latest year's headline suggests.

References
  1. ReportedIt earned ¥63.2 billion in the year to March 2026, including a gain of about ¥28 billion on selling Midas and a write-off of about ¥10 billion on non-performing loans in Indonesian auto finance.
    Sumitomo Corporation, results presentation for the year to March 2026 - leasing and aviation: SMFL, SMBC Aviation Capital, the lessor rankings, Air Lease and the automotive businesses. — FY to March 2026 · publ. May 2026 · source ↗
  2. ReportedThe forecast for the current year is ¥34.0 billion, and the first quarter earned ¥11.7 billion against ¥39.7 billion.
    Sumitomo Corporation, results presentation for the year to March 2026 - consolidated results, underlying profit, forecasts, sensitivities and the loss buffer. — FY to March 2026 · publ. May 2026 · source ↗
  3. ReportedThe forecast for the current year is ¥34.0 billion, and the first quarter earned ¥11.7 billion against ¥39.7 billion.
    Sumitomo Corporation, results presentation for April-June 2026 - progress against the forecast, one-time items, the Madagascar sale, investment and the balance sheet. — April-June 2026 · publ. 31 July 2026 · source ↗
  4. ReportedThe company cites intensified competition in key markets, and the automotive businesses include Toyota businesses in Iraq, Libya, Central Asia and Ukraine.
    Sumitomo Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - results, segment profit, the financial position, dividends, the share split and the forecast for the year to March 2027. — FY to March 2026 · publ. May 2026 · source ↗
  5. ReportedThe company cites intensified competition in key markets, and the automotive businesses include Toyota businesses in Iraq, Libya, Central Asia and Ukraine.
    Sumitomo Corporation, results presentation for the year to March 2026 - leasing and aviation: SMFL, SMBC Aviation Capital, the lessor rankings, Air Lease and the automotive businesses. — FY to March 2026 · publ. May 2026 · source ↗
Sources
Generated September 24, 2026