East Japan Railway Company (9020) Q2 2026 earnings summary

Executive summary

• Consolidated operating revenues and operating income for the first half significantly exceeded initial plans, driven by strong railway usage and higher sales at station stores, with no major natural disasters impacting results.

• Full-year forecasts for operating revenues, EBITDA, operating income, and profit attributable to owners were all revised upward, with an increased dividend forecast and higher payout ratio reflecting improved results and long-term shareholder return policy.

• Management strategy emphasizes safety, quality, and trust, with countermeasures for recent railway incidents and a focus on digital transformation, AI adoption, and dual access management under "To the Next Stage 2034."

• Major initiatives include urban development projects, digital transformation, and the launch of PRIDE & INTEGRITY strategy for mobility business.

• Interim and year-end dividends were raised to 35 yen each, with a full-year forecast of 70 yen per share.

Financial highlights

• Operating revenues increased for the fifth consecutive quarter, up 4.9% year-over-year to ¥1,463.0 billion.

• Operating income for the period was ¥231.4 billion, down 1.7% year-over-year due to timing shifts in real estate sales.

• Profit attributable to owners of parent rose by 5.3% to ¥147.2 billion, mainly from gains on investment securities sales.

• Extraordinary gains increased due to higher sales of investments in securities.

• Dividend raised to ¥70 per share, with a payout ratio of 33.3%.

Outlook and guidance

• Full-year operating revenues forecast revised to ¥3,058.0 billion, up 5.9% year-over-year.

• Operating income forecast raised to ¥405.0 billion (+¥18.0 billion); profit attributable to owners to ¥237.0 billion (+¥10.0 billion).

• Dividend payout ratio targeted to gradually rise to 40% by FY2028.3.

• Free cash flow expected to stabilize and turn positive from fiscal year 2026.

• Basic earnings per share forecast at ¥209.98.