East Japan Railway Company (9020) Q2 2027 earnings summary

Executive summary

• H1 FY2027 operating revenue rose 8.4% YoY to ¥1,585.4bn; operating income increased 13.6% to ¥262.9bn and parent-attributable profit rose 3.2% to ¥152.0bn.

• Strong rail usage and fare revisions supported results; full-year FY2027 forecasts were raised across revenue and income measures.

• Priorities include safety, sustainable mobility, real estate growth, digital services, and stronger governance and information security.

Financial highlights

• H1 ordinary income rose 15.7% to ¥230.1bn; EBITDA increased 10.3% to ¥481.9bn.

• Revenue rose ¥122.2bn YoY and expenses increased ¥90.8bn, lifting income by ¥31.4bn.

• Non-operating expenses increased ¥4.5bn YoY, mainly on higher interest expense; extraordinary gains declined and losses increased.

• Passenger revenue gains included ¥21bn from non-commuter Shinkansen and ¥17bn from non-commuter conventional-line fares; fare revisions contributed an estimated ¥43.5bn.

Outlook and guidance

• FY2027 forecasts: revenue ¥3,358.0bn, operating income ¥450.0bn, ordinary income ¥378.0bn and parent-attributable profit ¥265.0bn.

• Forecasts were raised from April by ¥63.0bn for revenue, ¥21.0bn for operating income, ¥25.0bn for ordinary income and ¥10.0bn for parent-attributable profit.

• Annual dividend forecast rose to ¥88 per share, including ¥44 interim and ¥44 year-end; payout ratio forecast is 37.5%, progressing toward a 40% target.

• FY2032 goals include ~¥4.3tn revenue, ~¥750bn operating income, ROA of at least 5%, ROE of at least 10%, and net interest-bearing debt/EBITDA of ~5x.

• FY2031 targets include at least ¥1.4tn in real estate asset management scale, ¥10bn Smart Logistics revenue and more than 70m Suica holders.