Nankai Tatsumura Construction (1850) investor relations material

Executive summary

• Achieved record highs in operating revenue and all profit levels for FY2025, driven by EXPO 2025 and strong inbound tourism, with core businesses leading growth.

• Operating revenue for the fiscal year ended March 31, 2026, rose 1.5% year-over-year to ¥264,714 million, with operating income up 15.2% to ¥39,945 million and profit attributable to owners of parent increasing 11.5% to ¥25,135 million.

• Comprehensive income surged 63.2% year-over-year to ¥41,750 million.

• Dividend increased to 50 yen (up 10 yen YoY), payout ratio 22.0%; treasury shares purchased for 12.0 billion yen.

• FY2026 forecast targets further record highs in revenue and income, offsetting post-EXPO and geopolitical headwinds through fare revisions and real estate expansion.

Financial highlights

• FY2025 operating revenue: ¥264.7B (+1.5% YoY); operating income: ¥39.9B (+15.2% YoY); net income: ¥25.1B (+11.5% YoY).

• EBITDA: ¥68.7B (+8.6% YoY); ROE: 7.8% (+0.3pt YoY); net interest-bearing debt/EBITDA: 6.1x.

• FY2026 forecast: operating revenue ¥287.5B (+8.6% YoY), operating income ¥40.0B (+0.1% YoY), net income ¥23.8B.

• Ordinary income increased 6.1% YoY to ¥37,763 million; basic EPS rose to ¥227.51.

• Cash flows from operating activities were ¥47,535 million; cash and cash equivalents at period end were ¥38,827 million.

Outlook and guidance

• FY2026 aims for record revenue and income despite post-EXPO decline and Japan-China tensions, leveraging fare hikes, new property income, and real estate sales.

• Dividend forecast for FY2026: 55 yen/share, payout ratio 25.0%.

• Medium-term plan targets FY2027 operating income of ¥42.0B (up from ¥36.0B), ROE of 7%+, and payout ratio around 30%.

• Basic earnings per share for FY2027 is projected at ¥219.96.

• Forecasts indicate a decline in profit attributable to owners of parent for FY2027 despite revenue growth.