East Japan Railway Company (9020) Q2 2026 earnings summary

Executive summary

• Operating income for the first half of FY2026.3 significantly exceeded plan, driven by strong railway usage and higher sales at station stores.

• Operating revenues for the six months ended September 30, 2025, rose 4.9% year-over-year to ¥1,463,096 million, with profit attributable to owners of parent up 5.3% to ¥147,227 million.

• Comprehensive income increased 32.1% year-over-year to ¥170,177 million.

• Interim and year-end dividends were raised to 35 yen each, with full-year dividend forecast revised to 70 yen per share, reflecting a higher payout ratio in line with long-term shareholder return policy.

Financial highlights

• Q2 FY2026.3 operating revenues rose to ¥1,463.0 billion (+4.9% YoY); operating income was ¥231.4 billion (-1.7% YoY).

• Profit attributable to owners increased to ¥147.2 billion (+5.3% YoY); EBITDA reached ¥436.9 billion (+0.9% YoY).

• All segments posted revenue growth; transportation and retail/services saw income gains, while real estate & hotels income declined due to lower real estate sales.

• Extraordinary gains rose sharply due to increased sales of investments in securities, while an extraordinary loss of ¥3,366 million was recognized for local transport operations after heavy rain suspension.

• Equity ratio improved to 29.1% from 28.1% at the previous fiscal year-end.

Outlook and guidance

• Full-year operating revenues forecast revised to ¥3,058.0 billion (+¥35.0 billion from prior forecast), 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).

• Basic earnings per share forecast at ¥209.98.

• ROE expected at 8.1% (+0.4%), ROA at 3.9% (+0.2%).

• Dividend payout ratio to gradually rise to 40% by FY2028.3 as growth investments stabilize.