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, but profit attributable to owners of parent rose 13.7% to ¥56.2 billion, driven by negative goodwill from the acquisition of TOKYU REIT.

• Interim net profit increased by ¥6.7 billion year-over-year, mainly due to the one-time gain from TOKYU REIT becoming an equity-method affiliate.

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

• Compared to May's forecast, both operating revenue and profit exceeded expectations, led by strong hotel, resort, and life services segments.

• 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

• Ordinary profit increased 5.6% year-over-year to ¥70,146 million; EPS for 2Q was ¥98.14, up ¥15.60 year-over-year.

• Full-year FY2025 revenue is projected at ¥1,085 billion, operating profit at ¥104 billion, and profit attributable to owners at ¥84 billion, all exceeding previous year results.

• EPS is projected at ¥146.32, ROE at 9.8%, and ROA at 3.8%.

• Equity ratio at 31.2% as of September 30, 2025; interest-bearing debt at ¥1,338.8 billion, D/E ratio at 1.6x.

• Dividend per share for the first half was ¥14.00, with a full-year forecast of ¥28.00.

Outlook and guidance

• Full-year operating revenue is forecast at ¥1,085 billion, up 2.8% year-over-year, with operating profit at ¥104 billion (+0.5%) and profit attributable to owners at ¥84 billion (+5.4%).

• EPS forecast at ¥146.32; upward revision of full-year forecasts based on strong first-half trends.

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

• 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.