The Kansai Electric Power Company (9503) Q4 2025 earnings summary

Executive summary

• Net sales rose 6.8% year-over-year to 4,337.1 billion yen, driven by higher electric sales revenue.

• Operating profit declined 35.7% to 468.8 billion yen due to increased purchased power costs.

• Net income attributable to owners was 420.3 billion yen, down 4.9% year-over-year.

• Extraordinary income of 61.4 billion yen was recorded from the sale of shares in Electricity North West Limited.

• Annual dividend for FY 3/2025 was 60.00 yen per share, with the same forecast for FY 3/2026.

Financial highlights

• Operating expenses increased 16.1% year-over-year, mainly from higher purchased power costs.

• Free cash flow decreased sharply to 247.7 billion yen from 726.9 billion yen.

• Capital adequacy ratio improved to 31.8% (32.9% after adjustments).

• Interest-bearing debt reduced by 108.6 billion yen to 4,471.7 billion yen.

• Cash and cash equivalents at year-end rose 66.8% to 941.4 billion yen.

Outlook and guidance

• FY 3/2026 forecasts net sales of 4,000.0 billion yen (down 7.8%), ordinary profit of 400.0 billion yen (down 24.8%), and net income of 295.0 billion yen (down 29.8%).

• Operating profit expected to fall 19.0% to 380.0 billion yen.

• Decrease in profit expected due to lower nuclear capacity factor, higher maintenance and corporate costs, and reduced electric sales volume.

• EBITDA forecast for FY 3/2026 is 835.0 billion yen, with EPS expected at 264.80 yen.

• Dividend forecast maintained at 60.00 yen per share for FY 3/2026.