Hankyu Hanshin Holdings (9042) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue rose 7.1% YoY to ¥641,454m, while operating profit fell 2.9% to ¥81,676m and profit attributable to owners declined 2.4% to ¥52,562m.

• Revenue growth reflected Entertainment, condominium sales and short-term Real Estate returns; higher costs, weaker Expo 2025 comparisons and Middle East disruption weighed on profit.

Financial highlights

• Operating expenses increased to ¥559,778m from ¥514,757m, outpacing revenue growth; ordinary profit fell 4.9% to ¥80,971m.

• Business profit was ¥83.1bn versus ¥84.7bn; interest expense rose ¥2.6bn to ¥10.0bn.

• Extraordinary losses declined to ¥1,436m from ¥7,596m; prior-year losses included ¥6,265m for property and equipment removal.

• Comprehensive income increased to ¥56,347m from ¥50,431m, with other comprehensive income of ¥754m versus a ¥5,580m loss.

Outlook and guidance

• FY2027 revenue forecast is ¥1,260.0bn, up 4.7% YoY and ¥5.0bn below May guidance; operating profit is revised up ¥6.0bn to ¥127.7bn.

• Business profit is forecast at ¥130.0bn; ordinary profit at ¥121.0bn, down 2.8% YoY; attributable profit at ¥90.0bn, up 14.6%, with basic EPS of ¥388.98.

• International Transportation revenue forecast falls ¥16.5bn versus May due to its planned divestiture; guidance assumes share transfer completion in Q4 and includes results through Q3.

• Travel revenue is forecast to rise on domestic demand, while profit is expected to decline as overseas package-tour suspensions continue amid Middle East tensions.