Nippon Yusen Kabushiki Kaisha (9101) Q4 2024 earnings summary

Executive summary

• Full-year revenue was JPY2,387.2bn, operating profit JPY174.7bn, recurring profit JPY261.3bn and parent-attributable profit JPY228.6bn; profits declined sharply from record levels but exceeded the February forecast.

• Weaker container-shipping earnings and lower equity-method earnings weighed on results; stronger container freight markets in Q4 supported the full-year outcome.

• FY2025 guidance forecasts lower revenue, operating profit and recurring profit, but higher parent-attributable profit.

Financial highlights

• Full-year equity-method earnings were JPY99.6bn versus JPY812.0bn, including JPY53.4bn from ONE; extraordinary income included JPY32.7bn from investment-security sales.

• Q4 revenue was JPY598.0bn, operating profit JPY30.4bn, recurring profit JPY61.1bn and parent-attributable profit JPY75.0bn.

• Operating cash flow was JPY401.4bn, investing cash outflow JPY285.6bn, financing cash outflow JPY163.4bn and period-end cash JPY144.9bn.

• ROIC was 8.4% versus a 6.5% target; ROE was 8.9% against an 8–10% target. Equity ratio was 62.3% and D/E ratio 0.34.

Outlook and guidance

• FY2025 forecast: revenue JPY2,290bn, operating profit JPY165bn, recurring profit JPY250bn and parent-attributable profit JPY245bn.

• FY2025 EPS is forecast at JPY533.61, based on ¥145/US$ average FX and bunker fuel at US$621.40/MT.

• FY2025 Q2 forecast is revenue JPY1,165bn, operating profit JPY80bn, recurring profit JPY140bn and parent-attributable profit JPY135bn.

• Outlook assumes Red Sea rerouting and tight liner capacity in H1; forwarding volumes are expected to rise, while lower freight rates may weigh on profit.