Tokyo Electric Power Company (9501) Q3 2025 earnings summary

Executive summary

• Operating revenue for FY2024 Q3 declined 2.8% year-over-year to 4,963.3 billion yen, mainly due to lower fuel cost adjustments from falling fuel prices.

• Ordinary income dropped 32.7% to 348.7 billion yen, impacted by a negative time-lag effect in the fuel cost adjustment system.

• Net income attributable to owners of the parent fell 30.8% to 243.1 billion yen, after recording 64.7 billion yen in nuclear damage compensation as an extraordinary loss.

• Total electricity sales volume was stable at 169.0 billion kWh (+0.2% year-over-year), with retail sales down 4.4% and wholesale sales up 28.3%.

Financial highlights

• Operating income decreased 18.7% year-over-year to 311.0 billion yen.

• Extraordinary loss related to nuclear damage compensation was 64.7 billion yen, down from 108.7 billion yen in the prior year.

• EPS declined to 151.78 yen from 219.31 yen year-over-year.

• ROA was 2.1% (down 0.7 points), and ROE was 6.7% (down 3.8 points) compared to the previous year.

• Net income margin decreased to 4.9% from 6.9% year-over-year.

Outlook and guidance

• FY2024 consolidated performance forecast remains undetermined due to prevailing uncertainties.

• Free cash flow is expected to remain negative, mainly due to nuclear-related investments and unrecovered costs from commodity price increases.

• Ongoing scrutiny of investments and operational streamlining are planned to secure capital for Fukushima responsibilities.

• Electricity demand in the TEPCO PG area is projected to grow by an average of 1.1% annually through FY2034, driven by data center and semiconductor plant expansion.