Tokyu (9005) Q4 2026 earnings summary

Executive summary

• Operating revenue for FY2025 rose 3.0% year-over-year to ¥1,086.1B, driven by strong performance in all segments, especially Hotel and Resort, though operating profit was flat due to the absence of large property sales from the prior year.

• Operating profit slightly decreased by 0.3% year-over-year to ¥103.1B, while ordinary profit increased 7.8% to ¥116.1B.

• Profit attributable to owners of parent increased 9.3% year-over-year to ¥87.0B, aided by higher equity in earnings of affiliates and recognition of negative goodwill from Tokyu REIT becoming an equity-method affiliate.

• Comprehensive income reached ¥108.2B, up 7.5% year-over-year.

• Compared to forecasts, operating profit was slightly below expectations due to earlier-than-planned project completions, but net profit exceeded forecasts on higher affiliate earnings.

Financial highlights

• FY2025 operating revenue: ¥1,086.1B (+3.0% YoY); operating profit: ¥103.1B (-0.3% YoY); profit attributable to owners of parent: ¥87.0B (+9.3% YoY).

• EPS for FY2025 was ¥152.25 (+17.44 YoY); ROE was 10.0% (+0.2pt YoY); TOKYU EBITDA reached ¥227.9B (+6.4% YoY).

• Total assets at FY2025 year-end: ¥2,920.2B (+8.2% YoY); equity ratio improved to 31.2%.

• Free cash flow for FY2025 was negative at -¥47.2B, reflecting increased investment and shareholder returns.

• Dividend per share for FY2025 was ¥30.00, with a payout ratio of 19.7%.

Outlook and guidance

• FY2026 forecasts: operating revenue ¥1,140.0B (+5.0% YoY), operating profit ¥110.0B (+6.6% YoY), profit attributable to owners of parent ¥90.0B (+3.4% YoY).

• EPS projected at ¥158.15; ROE at 9.6%; TOKYU EBITDA at ¥236.8B.

• Dividend per share forecasted at ¥32.00 for the next fiscal year.

• Management revised FY2026 guidance upward from the previous medium-term plan.

• FY2027 targets: operating revenue ¥1,180.0B, operating profit ¥112.0B, EPS ¥164.88.