Odakyu Electric Railway (9007) Q2 2026 earnings summary

Executive summary

• Operating revenue for FY3/2026 H1 was ¥198.4 bn, down 5.4% year-over-year, mainly due to extraordinary factors in Life Services.

• Operating profit decreased 3.5% to ¥28.0 bn, and profit attributable to owners of parent fell 30.1% to ¥23.1 bn, reflecting the absence of prior year extraordinary income.

• Comprehensive income declined 21.4% year-over-year to ¥23.6 bn.

• Compared to forecast, operating profit and profit attributable to owners of parent exceeded expectations due to higher gains from sale of cross-shareholdings.

Financial highlights

• Operating revenue: ¥198.4 bn (–5.4% YoY); operating profit: ¥28.0 bn (–3.5% YoY); profit attributable to owners of parent: ¥23.1 bn (–30.1% YoY).

• Ordinary profit for the period was ¥27.5 bn, a 7.8% decrease YoY.

• Capital investments rose to ¥18.9 bn; interest-bearing debt increased by ¥50.0 bn to ¥702.8 bn.

• Total assets increased to ¥1,359.9 bn as of September 30, 2025, mainly from higher cash and deposits and investment securities.

• Free cash flow improved to ¥2.0 bn, with cash and cash equivalents at period end rising to ¥78.1 bn.

Outlook and guidance

• FY3/2026 full-year forecasts: operating revenue ¥425.0 bn (+0.5% YoY), operating profit ¥53.0 bn (+3.0% YoY), profit attributable to owners of parent ¥35.0 bn (–32.6% YoY).

• Basic earnings per share for the full year is forecast at ¥101.38.

• Revenue and profit growth expected in Transportation and Real Estate, offset by declines in Life Services.

• Dividend forecast unchanged at ¥50 per share for FY3/2026.