West Japan Railway Company (9021) investor relations material

Executive summary

• 1Q FY2027.3 saw year-on-year declines in revenue and profit, mainly due to the absence of the prior year's Osaka-Kansai Expo effect and increased inflation-driven costs, despite solid domestic demand.

• Operating revenues for the quarter ended June 30, 2026, were ¥424,403 million, down 0.6% year-over-year.

• Operating income decreased by 11.7% to ¥55,989 million compared to the same quarter last year.

• Net income attributable to owners declined 20.1% year-on-year to ¥39,046 million.

• Earnings and dividend forecasts remain unchanged as performance aligns with prior guidance.

Financial highlights

• Consolidated operating revenues fell 0.6% year-on-year to ¥424.4B; operating income dropped 11.7% to ¥55.9B.

• Net income attributable to owners declined 20.1% year-on-year to ¥39.0B.

• EBITDA decreased 5.1% year-on-year to ¥100.0B.

• Recurring income for the quarter was ¥52,125 million, a 12.7% decrease year-over-year.

• Basic earnings per share dropped to ¥85.80 from ¥104.54 a year earlier.

Outlook and guidance

• Full-year forecasts for revenue, income, and dividends remain unchanged, factoring in anticipated impacts from inflation and the Middle East situation.

• Full-year operating revenues are forecast at ¥1,829,000 million, up 0.9% year-over-year.

• Operating income is projected to decrease 21.1% to ¥145,000 million for the fiscal year.

• Net income attributable to owners of the parent is expected to decline 21.6% to ¥100,000 million.

• Annual dividend forecast remains unchanged at ¥97.50 per share.

• The company expects the Middle East impact to materialize from 2Q onward, with close monitoring ongoing.