Tokyu (9005) Q2 2026 earnings summary

Executive summary

• Operating revenue for Q2 FY2025 was ¥518.9 billion, down 1.2% year-over-year, with operating profit at ¥58.8 billion, a 9.9% decrease year-over-year; profit attributable to owners of parent rose 13.7% to ¥56.2 billion, driven by negative goodwill from the acquisition of TOKYU REIT, Inc.

• Interim net profit increased by ¥6.7 billion year-over-year, mainly due to negative goodwill from additional acquisition in TOKYU REIT.

• Comprehensive income declined 23.6% year-over-year to ¥45,589 million.

• Compared to forecasts as of May, both operating revenue and profit exceeded expectations, led by strong Life Service and Hotel and Resort businesses.

• The real estate segment saw a decline in revenue and profit due to a reactionary drop after a previous period's condominium sales concentration.

Financial highlights

• 2Q FY2025 operating revenue was ¥518.9 billion, down 1.2% year-over-year, but up 0.9% vs. forecast; operating profit was ¥58.8 billion, down 9.9% year-over-year, but up 6.5% vs. forecast.

• Recurring profit rose 5.6% year-over-year to ¥70.1 billion; profit attributable to owners of parent increased 13.7% year-over-year to ¥56.2 billion.

• EPS for 2Q was ¥98.14, up ¥15.60 year-over-year.

• Full-year FY2025 forecast: operating revenue ¥1,085.0 billion, operating profit ¥104.0 billion, profit attributable to owners of parent ¥84.0 billion, EPS forecast at ¥146.32.

• All major financial indicators are expected to surpass previous fiscal year results.

Outlook and guidance

• Full-year operating revenue is forecast at ¥1,085.0 billion, up 2.8% year-over-year, with operating profit at ¥104.0 billion (up 0.5%) and profit attributable to owners of parent at ¥84.0 billion (up 5.4%).

• EPS projected at ¥146.32, ROE at 9.8%, and ROA at 3.8%, all improved from previous forecasts.

• Hotel and Resort business expects full-year occupancy rate of 79.8% and ADR of ¥26,071 (+¥2,151 year-over-year).

• Positive business environment expected to continue, driven by mobility demand, inbound tourism, and retail price increases.

• Vigilance maintained regarding inflation, construction costs, and interest rates.