Seibu Holdings Inc (9024) Q4 2025 earnings summary

Executive summary

• Operating revenue surged 88.7% year-over-year to ¥901.1 billion, driven by the securitization of Tokyo Garden Terrace Kioicho, strong inbound tourism from a weaker yen, price hikes, and higher commuter traffic.

• Profit attributable to owners of parent rose to ¥258.1 billion, up 856.6% year-over-year, mainly from a gain on bargain purchase related to NW Corporation shares.

• Operating profit rose 513.6% to ¥292.7 billion, and EBITDA reached ¥347.1 billion, both exceeding forecasts.

• Net profit missed forecasts due to impairment losses in Hotel and Leisure and higher taxes.

Financial highlights

• Operating revenue: ¥901.1 billion (+88.7% YoY); Operating profit: ¥292.7 billion (+513.6% YoY); EBITDA: ¥347.1 billion (+240.8% YoY); Ordinary profit: ¥287.6 billion (+568.9% YoY).

• Comprehensive income was ¥274.6 billion, up 324.1% year-over-year.

• Total assets increased to ¥1,834.1 billion; net assets rose to ¥567.1 billion; equity-to-asset ratio improved to 30.6%.

• Free cash flow soared to ¥380.7 billion, up ¥332.6 billion year-over-year; cash and cash equivalents at period-end were ¥276.9 billion.

• Net interest-bearing debt decreased by ¥346.4 billion to ¥384.2 billion.

Outlook and guidance

• For FY2026, operating revenue is forecast to decline 43.3% to ¥511.0 billion due to the absence of large one-time real estate securitization.

• Operating profit is projected to fall 86.3% to ¥40.0 billion, and profit attributable to owners of parent is expected at ¥26.0 billion, down 89.9%.

• Annual dividend for FY2026 is planned at ¥40 per share, maintaining the previous year’s level.

• Continued focus on capital recycling in real estate, with further property acquisitions and partnerships to maximize asset value.

• Railway fare revision planned for March 2026 to support sustainable operations.