Tokyo Gas (9531) Q2 2025 earnings summary

Executive summary

• FY2024 2Q net sales declined 4.0% year-over-year to ¥1,221.4 billion, mainly due to lower city gas unit prices from resource cost adjustments.

• Operating profit dropped 70.5% year-over-year to ¥38.2 billion, and profit attributable to owners fell 83.5% to ¥17.1 billion.

• City gas sales volume rose 0.4% year-over-year, driven by higher industrial and utility demand, while residential demand declined.

• The company is executing its Compass Transformation 23-25 plan, focusing on business portfolio management, asset realignment, and growth investments.

• Treasury share buybacks totaling ¥40 billion were announced to enhance capital efficiency and support an 8% ROE target for FY2025.

Financial highlights

• 2Q FY2024 net sales: ¥1,221.4 billion, down ¥51.3 billion (-4.0%) year-over-year.

• 2Q FY2024 profit attributable to owners: ¥17.1 billion, down ¥86.8 billion (-83.5%) year-over-year.

• Operating profit for 2Q FY2024: ¥38.2 billion, down ¥91.5 billion (-70.5%) year-over-year.

• Gross profit for the interim period was ¥171.0 billion, down from ¥246.3 billion a year earlier.

• Equity ratio improved to 45.0% as of September 30, 2024, up 1.4 points from March 31, 2024.

Outlook and guidance

• FY2024 full-year net sales forecast: ¥2,653.0 billion, down 0.4% year-over-year.

• Operating profit forecast: ¥125.0 billion, down 43.3% year-over-year.

• Net profit attributable to owners forecast at ¥81.0 billion, a 52.3% decrease year-over-year.

• City gas sales volume for FY2024 is expected to rise 1.7%, while electric power sales volume is projected to decline 5.6%.

• ROE target for FY2025 is 8%, with a total payout ratio (dividends plus buybacks) of around 40% annually.