The Kansai Electric Power Company (9503) Q4 2026 earnings summary

Executive summary

• FY2025 consolidated revenue was JPY 4.0566 trillion, with recurring profit at JPY 518.5 billion, both down from FY2024, mainly due to lower electricity sales and reduced nuclear capacity factor, alongside higher expenses.

• FY2026 recurring profit is forecast at JPY 290 billion, a decrease of JPY 228.5 billion, due to FX, fuel prices, lower nuclear capacity, and higher costs.

• Annual dividend for FY2025 is JPY 75 per share, rising to JPY 80 in FY2026.

• Management Plan 2026 targets disciplined investments and a vision toward 2040, focusing on safety, energy security, and sustainable growth.

• Most financial targets for the Medium-term Management Plan were achieved despite a 2.5% decrease in total electricity sales volume to 152.2 TWh.

Financial highlights

• FY2025 consolidated net sales: JPY 4,056.6 billion, down 6.5% year-over-year; ordinary profit: JPY 518.5 billion, down 2.5%; profit attributable to owners of parent: JPY 380.0 billion, down 9.6%.

• Retail electricity sales volume in FY2025 was 116.3 billion kWh, up 800 million kWh year-over-year, while total electricity sales volume decreased to 152.2 TWh.

• Nuclear capacity factor dropped 4.4% to 84.1%.

• Growth investments in FY2025 totaled JPY 185 billion, below the projected JPY 300 billion.

• Free cash flow for FY2025 was JPY 80.4 billion.

Outlook and guidance

• FY2026 ordinary profit expected at JPY 290 billion, down JPY 228.5 billion year-over-year; profit attributable to owners of parent forecast at JPY 310 billion.

• Main headwinds: lower nuclear capacity due to maintenance, higher fuel and maintenance costs, and inflation.

• Shareholder return policy revised to target a consolidated payout ratio of 25%-35%, with over JPY 270 billion to be returned over three years.

• ROE target set at over 8% on a three-year average.

• FY2026 consolidated net sales forecast: JPY 4,500 billion (+10.9% year-over-year).