Odakyu Electric Railway (9007) Q2 2025 earnings summary

Executive summary

• Achieved favorable H1 FY2024 results, with operating revenue up 6.9% to ¥209.7 billion and operating profit up 9.2% to ¥29.0 billion, driven by strong demand in railways and hotels.

• Profit attributable to owners of parent increased 26.2% year-over-year to ¥33.0 billion.

• Completed sale of UDS Ltd. as part of structural reforms to enhance financial soundness and capital efficiency.

• Comprehensive income decreased 10.5% year-over-year to ¥30.1 billion.

• Focus remains on community-based value creation, with major investments planned along the Odakyu Line and the Shinjuku West Gate Development Project.

Financial highlights

• H1 FY2024 revenue from operations rose 6.9% year-over-year to ¥209.7 billion; operating income up 9.2% to ¥29.0 billion.

• Net income attributable to owners of parent increased 26.2% year-over-year to ¥33.0 billion, aided by extraordinary gains from asset sales.

• Full-year FY2024 revenue forecast at ¥424.0 billion (+3.5% year-over-year); operating income expected to decrease 5.5% to ¥48.0 billion due to higher costs.

• Net income for FY2024 projected to decline 48.0% to ¥42.4 billion, reflecting absence of prior year’s large asset sale gains.

• Basic earnings per share for H1 was ¥92.34; full-year forecast is ¥120.84.

Outlook and guidance

• FY2024 operating income guidance revised upward by ¥6 billion, mainly from lower railway business expenses.

• ROE for FY2024 expected at 9.7%, factoring in share buybacks.

• Long-term targets: operating income of ¥50.0 billion by FY2026 and ¥70.0 billion by FY2030; ROE of 7% or more by FY2030.

• Dividend forecast for FY2024 is ¥30.00 per share, unchanged from previous guidance.