Keisei Electric Railway Co. (9009) Q2 2025 earnings summary

Executive summary

• Operating revenue and profit rose in H1 FY2024, driven by higher ridership to/from Narita Airport amid growing inbound demand and post-pandemic recovery.

• Growth in ordinary profit slowed due to a lower share of profit from equity-method affiliates.

• Kanto Railway Co., Ltd. became a wholly owned subsidiary as of September 1, 2024.

• Assets and liabilities decreased mainly from income tax payments and decreased cash and deposits, while net assets increased on higher retained earnings.

• Growth supported by strategic initiatives under Medium-Term Business Plan D1.

Financial highlights

• H1 FY2024 operating revenue: ¥158,033 million, up 6.8% year-over-year; operating profit: ¥22,079 million, up 44.8%; ordinary profit: ¥31,518 million, up 16.1%; profit attributable to owners: ¥21,496 million, up 1.9%.

• Total assets at ¥1,028,165 million, down 3.4% from March 31, 2024.

• Net assets increased 3.6% to ¥485,993 million, driven by higher retained earnings.

• Basic earnings per share for the period was ¥132.26, up from ¥125.94 year-over-year.

• Equity ratio improved to 45.8% from 42.4%.

Outlook and guidance

• FY2024 forecasts remain unchanged: operating revenue ¥337,600 million (+13.9% YoY), operating profit ¥33,700 million (+33.5% YoY), ordinary profit ¥58,100 million (+12.6% YoY), profit attributable to owners forecast at ¥47,000 million, down 46.4% YoY due to prior-year one-time gains.

• CapEx budget for FY2024 is ¥144,700 million, including M&A.

• EPS forecast for FY2024 is ¥96.39 (post-split basis).

• No change to previously announced forecasts; company will monitor trends and update if necessary.