Tokyu (9005) Q4 2025 earnings summary

Executive summary

• FY 2024 operating revenue was JPY 1,054.9 billion, operating profit JPY 103.4 billion, and net profit JPY 79.6 billion, with strong performance in hotel, resort, and life service businesses.

• Operating revenue and profit increased year-over-year, driven by Life Service and Hotel & Resort segments, despite a decline in Real Estate Sales.

• Net profit attributable to owners of parent rose 24.6% year-over-year, aided by higher operating profit and lower impairment losses.

• Structural reforms and organic growth post-pandemic led to record-high operating profit for FY 2024.

• Comprehensive income reached JPY 100.66 billion, up 14.9% year-over-year.

Financial highlights

• EPS for FY 2024 was JPY 134.81, up JPY 28.69 YoY; ROE reached 9.8%, and ROA was 3.8%.

• Interest-bearing debt to EBITDA multiple was six times, reflecting financial soundness.

• Annual dividend for FY 2024 was JPY 24 per share, increasing to JPY 28 per share for FY 2025.

• Free cash flow was JPY 41 billion; cash and cash equivalents at year-end were JPY 58.3 billion.

• Equity ratio improved to 30.7% from 29.8% year-over-year.

Outlook and guidance

• FY 2025 forecast: operating revenue JPY 1.072 trillion, operating profit JPY 100 billion, net profit JPY 80 billion.

• EPS projected at JPY 139.23, ROE at 9.3%, and ROA at 3.7% for FY 2025.

• Annual dividend planned at JPY 28 per share for FY 2025, with a medium- to long-term payout ratio target of 30%.

• FY 2026 and FY 2027 targets: EPS JPY 141 and JPY 143, operating profit JPY 105 billion and JPY 110 billion, net profit JPY 81 billion and JPY 82 billion, respectively.

• Operating profit expected to decrease due to lower Real Estate Sales, but profit attributable to owners of parent to rise slightly.