Thank you very much for joining our first quarter financial results briefing for FY 2026, despite your very busy schedule. I will begin by explaining the highlights of the results. Please turn to page three of the earnings presentation material, as indicated at the bottom right. Turning first to our financial results. Underlying operating cash flow for the first quarter of FY 2026 was JPY 341.2 billion, while consolidated net income was JPY 298.5 billion. Both achieved 27% progress rate against our full year guidance, marking a solid start in excess of the normal Q1 progress rate as we steadily accumulated adjusted consolidated net income even though significant profit contributions are expected from Q2 onward. At this point, we are maintaining our full year forecast.
As the FX and certain commodity prices remained more favorable than our initial assumptions, we will carefully assess the potential for an upward revision to our guidance in Q2. Turning next to progress on Corporate Strategy 2027. Our plan for profit growth of JPY 400 billion through the Enhance, Reshape, and Create initiatives continues to make steady progress. Our cash flow allocation plan is also broadly on track in light of our recent solid performance and advancement in selecting projects from our investment pipeline. We will remain firmly committed to achieving an ROE of 12% or higher in FY 2027, the numerical target set out in Corporate Strategy 2027, and will steadily implement the necessary measures.
As one of the measures to achieve an ROE of 12% or higher, we do not rule out capital adjustments through share buybacks and intend to respond flexibly after carefully assessing factors, including potential upside to future earnings and the recent impact of the weaker JPY on our capital. I would like to elaborate on the progress of the profit growth plan I mentioned earlier. Please turn to page four. Since the beginning of this fiscal year, we have already begun generating profits from several projects. First, initiatives to stabilize production at LNG Canada are progressing smoothly, while the integration of the salmon farming business acquired last fiscal year is also proceeding broadly in line with the plan, with both business making steady earnings contributions.
In addition, we completed the acquisition of all shares in the U.S. shale gas business in July, and the profit contribution will kick in from Q2. We will continue to advance our value creation framework, leveraging our integrated strength as its engine while steadily strengthening the earnings base over existing businesses and creating new business opportunities. This concludes my presentation. Yoshihiro Shimazu, our CFO, will provide an overview of the financial results.
I am Shimazu, CFO. I would like to brief you on the overview of our financial results. Please refer to page five on the bottom right. For the first quarter of FY 2026, underlying operating cash flow was JPY 341.2 billion, an increase of JPY 90.8 billion year-over-year. Consolidated net income was JPY 298.5 billion, increase of JPY 95.4 billion year-over-year. The year-on-year increases in both figures were primarily driven by higher market prices in the Australian steelmaking coal and copper businesses, as well as an increase in transactions accompanying the start of production at LNG Canada. Progress against our full year earnings forecast is on track at 27% for both underlying operating cash flow and consolidated net income. In particular, adjusted consolidated net income remained solid across multiple groups, notably in mineral resources, where the progress rate stands at 33%, significantly exceeding the standard run rate.
Please turn to page six on the bottom right for supplementary details regarding the impact of the Middle East situation. At the beginning of the fiscal year, we assumed the turmoil would continue through the first half of FY 2026. There is an increasing possibility that it will be more prolonged than initially expected. On the other hand, the materialized impact on each business during Q1 was generally limited, and it does not constitute a major downward pressure on our earnings at this point. Even if we conservatively assume the current situation continues until the end of the fiscal year, the impact on earnings is expected to be largely remain within our initial assumptions, and we have kept our contingency buffers unchanged.
The positive impact on profits from higher oil prices is not included in this estimation, and we will carefully examine the room for upward revision to our earnings forecast heading into the second quarter. I will explain our cash flow allocation and financial leverage. Please refer to page seven on the bottom right. Regarding cash-ins for Q1 of FY 2026, in addition to an underlying operating cash flow of JPY 0.3 trillion, divestitures amounted to JPY 0.2 trillion, mainly due to the redemption of preferred shares by Chiyoda Corporation. As for cash outs, we executed JPY 0.1 trillion in investments centered on sustaining CapEx. In July, we completed our capital contribution to the U.S. shale gas business, meaning gross investments are also being steadily executed.
Both underlying operating cash flow and divestitures remain largely on track with our Corporate Strategy 2027, and we continue to rigorously screen and prioritize our investment opportunities. We will continue our efforts to strengthen cash-ins and utilize leverage. Any additional allocation capacity will be flexibly deployed toward growth investments and shareholder returns as we pursue both growth and efficiency. For earnings by segment, please refer to the details provided on pages 8- 10 on the bottom right. Please turn to page 11 on the bottom right. In response to strong interest regarding our capital recycling, we have compiled a list of major track records starting from our previous Midterm Corporate Strategy 2024. Under Corporate Strategy 2027, we are continuously reviewing our ownership strategy for each business. Currently, for underperforming investments, we plan to exit approximately 30 companies, representing an invested capital of about JPY 350 billion.
We will continue to closely scrutinize our remaining businesses and strive to further improve capital efficiency through capital recycling. This concludes my explanation.