Nippon Yusen Kabushiki Kaisha (9101) Q2 2026 earnings summary

Executive summary

• FY2025 Q2 revenue and profit declined year-on-year, mainly due to a sharp drop in equity method investment income from ONE, lower freight rates, and economic uncertainty from tariff policies and new port fees.

• The business environment remains uncertain, with ongoing impacts from tariff policies, port fees, exchange rate fluctuations, and new maritime regulations.

• The company is investing in mid-to-long-term growth, including the largest-ever M&A in logistics and expansion of the LNG carrier fleet to 130 vessels by FY2028.

• Comprehensive income for the first half decreased 67.0% year-over-year to ¥72.5 billion.

• Equity in earnings of unconsolidated subsidiaries and affiliates was ¥62.6 billion, with ONE contributing ¥20.3 billion.

Financial highlights

• First-half revenue was JPY 1,182.1 billion, down JPY 134.7 billion year-on-year; recurring profit was JPY 126.8 billion, down JPY 162.4 billion; net income was JPY 102.2 billion, down JPY 163.6 billion.

• Gross margin for the six months was ¥206.5 billion.

• Profit per share for the period was ¥239.34, down from ¥585.60 year-over-year.

• Cash and cash equivalents at period end were ¥280.4 billion, up ¥130.6 billion from the start of the year.

• Net cash provided by operating activities was ¥292.2 billion, investing activities used ¥75.7 billion, and financing activities used ¥84.8 billion.

Outlook and guidance

• Full-year revenue forecast is JPY 2,350.0 billion, unchanged from previous forecast; recurring profit forecast revised down to JPY 190.0 billion (down JPY 50.0 billion); net income forecast revised down to JPY 210.0 billion (down JPY 30.0 billion).

• Annual dividend forecast is JPY 225 per share, including a JPY 25 commemorative dividend; year-end dividend revised to JPY 110 per share.

• Forecasts revised downward mainly due to lower profit expectations in Liner Trade, Logistics, Automotive, and Dry Bulk segments.

• Assumptions: average exchange rate ¥146.59/US$, bunker oil price US$539.80/MT for the year.

• Sensitivity: every ¥1/USD depreciation increases recurring profit by approx. JPY 0.79 billion; every $10/MT decrease in bunker prices increases recurring profit by JPY 0.35 billion.