Tokyo Gas (9531) Q3 2025 earnings summary

Executive summary

• Net sales for 3Q FY2024 were ¥1,843.7 billion, down 3.1% YoY, mainly due to lower city gas unit prices and higher raw material costs from exchange rate fluctuations.

• Operating profit dropped 55.2% to ¥72.9 billion and profit attributable to owners was ¥36.5 billion, down 68.3% YoY, impacted by higher costs and extraordinary losses.

• The company is executing a strategy focused on asset optimization, divestment of non-core assets, and growth in next-generation energy and overseas businesses.

• Large-scale share buybacks and progressive dividend increases are being implemented to enhance shareholder returns and capital efficiency.

• Comprehensive income declined 63.2% YoY to ¥89,751 million.

Financial highlights

• Gross profit for the nine months was ¥268,982 million, down from ¥342,900 million YoY.

• EPS for the nine months was 93.81 yen, compared to 277.04 yen in the prior year.

• Total assets as of December 31, 2024, were ¥3,891,482 million, with an equity ratio of 43.4%.

• Net assets decreased by ¥5,595 million from March 31, 2024, mainly due to dividends and treasury share purchases.

• Extraordinary losses included a ¥8.6 billion loss on valuation of investment securities in 3Q.

Outlook and guidance

• Full-year FY2024 net sales forecast is ¥2,689.0 billion (up 0.9% YoY), with profit attributable to owners projected at ¥72.0 billion (down 57.6% YoY).

• Operating profit for the full year is expected to decline 46.9% to ¥117,000 million.

• FY2024 full-year profit forecast revised downward by ¥9.0 billion from previous guidance, mainly due to lower Energy Solution profits.

• Dividend forecast for FY2024 is unchanged at 70.00 yen per share.

• ROE target of 8% for FY2025 and 10% or more by FY2030, with ongoing asset divestments and capital reallocation.