Tokyu (9005) Q2 2025 earnings summary

Executive summary

• Operating revenue for the six months ended September 30, 2024, rose 8.6% year-over-year to ¥525.2 billion, with operating profit up 43.5% to ¥65.3 billion and profit attributable to owners of parent up 41.2% to ¥49.4 billion, driven by recovery in railway, hotel, and condominium sales.

• All business segments outperformed forecasts, leading to an upward revision of full-year guidance.

• 1H FY2024 operating profit exceeded pre-COVID levels, reaching a record high.

• Comprehensive income for the period was ¥59,647 million, up 19.9% year-over-year.

Financial highlights

• 1H FY2024 operating revenue: ¥525.2B (+8.6% YoY); operating profit: ¥65.3B (+43.5% YoY); profit attributable to owners of parent: ¥49.4B (+41.2% YoY); EPS: ¥82.54 (+¥24.69 YoY).

• Ordinary profit for the first half reached ¥66,430 million, up 33.7% year-over-year.

• Full-year forecast revised upward: operating revenue ¥1,065 billion (+2.6% YoY), operating profit ¥101 billion (+6.4% YoY), profit attributable to owners of parent ¥74 billion (+16.1% YoY), EPS ¥129.30.

• EBITDA: ¥107.4B (+21.9% YoY); TOKYU EBITDA: ¥114.3B (+16.8% YoY); free cash flow for 1H: ¥56.4B (+¥37.2B YoY); net interest-bearing debt at period end: ¥1,165.0B.

• Equity ratio improved to 32.0% (+2.2p YoY); D/E ratio at 1.5x.

Outlook and guidance

• Full-year operating revenue forecast is ¥1,065,000 million, up 2.6% year-over-year; operating profit projected at ¥101,000 million, up 6.4% year-over-year; profit attributable to owners of parent forecast at ¥74,000 million, a 16.1% increase year-over-year; EPS expected at ¥129.30.

• Upward revisions reflect strong 1H results, especially in real estate and hotel segments.

• Management expects to achieve medium-term plan profit targets ahead of schedule.

• FY 2025 and FY 2026 operating profit targets raised by ¥10 billion each year, with profit attributable to owners of parent up ¥7 billion annually.

• Full-year hotel occupancy rate forecast at 79.1% (+3.5p YoY); ADR at ¥23,327 (+¥2,148 YoY).