East Japan Railway Company (9020) Q4 2026 earnings summary

Executive summary

• Achieved record-high operating revenues of JPY 3.0846 trillion for FY2026.3, with both revenue and income increasing year-over-year, driven by strong passenger traffic, fare revisions, and new business openings such as TAKANAWA GATEWAY CITY and OIMACHI TRACKS.

• All business segments—Transportation, Retail & Services, Real Estate & Hotels, and Others—achieved year-over-year revenue and income growth.

• Advanced dual-axis management strategy focusing on Mobility and Lifestyle Solutions, with updated KPIs and the "To the Next Stage 2034" vision.

• Prioritized safety initiatives and governance reforms following operational disruptions and misconduct cases.

• Significant investments in safety, governance, and digital transformation.

Financial highlights

• Operating revenues reached JPY 3.0847 trillion, up 6.8% year-over-year; operating income rose 9.9% to JPY 414.3 billion; EBITDA was JPY 842.9 billion (+7.7% YoY); net income attributable to owners was JPY 247.8 billion (+10.5% YoY).

• ROE improved to 8.4%; ROA at 3.9%.

• Dividend payout ratio increased to 33.7% with annual dividends of JPY 74 per share.

• Net interest-bearing debt rose to JPY 5,162.2 billion; net interest-bearing debt/EBITDA at 5.8x.

• Capital expenditures totaled JPY 949.1 billion, exceeding plan due to early site acquisitions and project launches.

Outlook and guidance

• For FY2027.3, targeting operating revenue of JPY 3.295 trillion (+6.8%) and operating income of JPY 429 billion (+3.6%).

• Dividend forecast for FY2027.3: JPY 84 per share (payout ratio 37.2%).

• Updated long-term targets: operating revenue of JPY 4.3 trillion and operating income of JPY 750 billion by March 2032; EBITDA target of JPY 1.2 trillion and ROE 10%+.

• Major capital investments planned in safety, platform gates, earthquake countermeasures, and new lines.