West Japan Railway Company (9021) Q2 2025 earnings summary

Executive summary

• Consolidated operating revenues rose for the fourth consecutive year, driven by recovery in customer usage and the Hokuriku Shinkansen extension to Tsuruga, though operating income declined due to project-related costs in Osaka.

• Net income attributable to owners of parent increased for the fourth consecutive year, with EPS at ¥145.58 after a 2-for-1 stock split.

• Comprehensive income declined 3.7% year-over-year to ¥69,994 million.

• Dividend payout is planned to rise by ¥2 to ¥74 per share, post stock split.

• The company is maintaining its earnings forecast, focusing on demand creation across group businesses to achieve operating income targets.

Financial highlights

• FY2025.3 2Q consolidated operating revenues: ¥811.3B (+5.4% YoY); operating income: ¥104.7B (-1.4% YoY); net income attributable to owners: ¥69.7B (+3.8% YoY).

• EBITDA for 2Q: ¥186.6B (+0.3% YoY); recurring income: ¥98.6B (flat YoY).

• Total assets as of September 30, 2024: ¥3,600.6B; net assets: ¥1,226.5B; equity ratio: 30.7%.

• Cash flows from operating activities for six months: ¥98.1B, down from ¥127.9B prior year; cash and cash equivalents at period end: ¥115.5B.

• Inbound transportation revenue hit a record ¥19.2B in 2Q, progressing in line with the annual estimate of ¥37B.

Outlook and guidance

• Full-year consolidated operating revenues forecast at ¥1,718.0B (+5.1% YoY); operating income forecast at ¥170.0B; net income forecast at ¥100.0B (+1.3% YoY).

• EPS for the full year is forecast at ¥210.67, reflecting treasury stock acquisition and cancellation.

• Dividend forecast revised to ¥74.00 per share for the year, post stock split.

• Transportation revenue expected to reach ¥887.0B for the year, with inbound revenue forecast at ¥37.0B.

• No change to earnings forecast; cost structure reforms and demand creation measures to continue.