East Japan Railway Company (9020) Q1 2027 earnings summary

Executive summary

• Operating revenues for the first quarter reached a record high of ¥772.7 billion, marking the sixth consecutive period of growth, driven by increased passenger revenues and real estate leases.

• Operating income rose by ¥10.7 billion year-on-year to ¥125.5 billion (+9.4%), and ordinary income increased to ¥106.8 billion (+8.0%).

• Profit attributable to owners of parent declined 13.6% year-over-year to ¥68.0 billion, mainly due to lower gains on sales of investment securities.

• All business segments reported revenue growth, with notable contributions from transportation, retail & services, real estate & hotels, and others.

Financial highlights

• Operating revenues increased to ¥772.7 billion (+8.0% YoY); operating income rose to ¥125.5 billion (+9.4% YoY); ordinary income to ¥106.8 billion (+8.0% YoY).

• Profit attributable to owners of parent was ¥68.0 billion (-13.6% YoY); EBITDA improved to ¥234.1 billion (+8.1%).

• Extraordinary gains decreased by ¥19.7 billion due to lower gains on investment securities sales; extraordinary losses increased.

• Expenses rose by ¥46.6 billion year-on-year; non-operating expenses increased by ¥2.2 billion, mainly from higher bond interest.

• Earnings per share (basic) was ¥60.24 (vs. ¥69.56 prior year); depreciation for the quarter was ¥108.6 billion.

Outlook and guidance

• Full-year forecasts remain unchanged: operating revenues projected at ¥3,295.0 billion (+6.8% YoY), operating income at ¥429.0 billion (+3.6%), and profit attributable to owners of parent at ¥255.0 billion (+2.9%).

• Annual dividend plan maintained at ¥84 per share with a 37.2% payout ratio; interim and year-end dividend forecasts are both ¥42 per share.

• Expectation of increased Mobility CapEx in the second half for projects like automatic platform gates.

• Anticipate impact from Middle East energy situation to emerge from summer onward.