The Kansai Electric Power Company (9503) Q4 2026 earnings summary

Executive summary

• FY2025 saw consolidated revenue of JPY 4.057 trillion and recurring profit of JPY 518.5 billion, both down from FY2024, mainly due to lower electricity sales and reduced nuclear capacity factor, alongside higher expenses and maintenance costs in the Energy segment.

• FY2026 recurring profit is forecast at JPY 290 billion, a decrease of JPY 228.5 billion, with profit attributable to owners of parent forecast at JPY 310 billion, and annual dividend rising from JPY 75 to JPY 80 per share.

• Management Plan 2026 aims for disciplined investment, safety, and sustainable growth, with a vision toward 2040, and incorporates investor feedback.

Financial highlights

• FY2025 consolidated net sales were JPY 4,056.6 billion, down 6.5% year-over-year, with ordinary profit at JPY 518.5 billion and profit attributable to owners of parent at JPY 380.0 billion.

• Retail electricity sales volume in FY2025 increased by 800 million kWh to 116.3 billion kWh, while total electricity sales volume declined 2.5% to 152.2 TWh.

• Nuclear capacity factor dropped 4.4% to 84.1%.

• Equity ratio improved to 35.1% as of March 31, 2025.

• Free cash flow for FY2025 was JPY 80.4 billion.

Outlook and guidance

• FY2026 consolidated net sales forecast is JPY 4,500.0 billion (+10.9% year-over-year), with ordinary profit forecast at JPY 290.0 billion (-44.1% year-over-year) and profit attributable to owners of parent at JPY 310.0 billion (-18.4% year-over-year).

• Key drivers for profit decline include lower nuclear capacity due to maintenance, higher fuel costs from Middle East instability, inflation, and increased maintenance.

• Shareholder return policy revised to target a consolidated payout ratio of 25%-35%, with over JPY 270 billion to be returned over three years.

• ROE target set at over 8% on a three-year average.