Tokyo Metro (9023) Q3 2025 earnings summary

Executive summary

• Operating revenues for the nine months ended December 31, 2024, rose 5.1% year-over-year to JPY 306.1 billion, with operating income up 20.2% to JPY 77.7 billion and net income attributable to owners up 7.2% to JPY 42.0 billion, driven by recovery in passenger transportation and growth across all business segments.

• The company advanced its medium-term management plan, focusing on cost structure reform, safety, new railway construction, and urban development, while expanding real estate, retail, advertising, and overseas businesses.

• Notable initiatives included security camera installation, seismic and flood countermeasures, platform door installations, CBTC signaling, and generative AI for customer service.

• Passenger transportation revenues recovered to 98.4% of pre-COVID levels by December 2024, reflecting revitalized economic activity and increased inbound travel.

• No changes were made to the full-year forecast, with a projected year-end dividend of 40 yen per share, maintaining a payout ratio target of 40% or higher.

Financial highlights

• Operating revenues increased by JPY 14.98 billion (+5.1%) and operating income by JPY 13.04 billion (+20.2%) compared to the same period last year.

• Ordinary income rose 22.2% year-over-year to JPY 69.3 billion; net income attributable to owners grew 7.2% to JPY 42.0 billion.

• EBITDA for the nine months was JPY 130.8 billion, up 9.4% year-over-year.

• Basic earnings per share for the nine months was JPY 72.24, up from JPY 67.39 year-over-year.

• Equity ratio improved to 34.4% as of December 31, 2024.

Outlook and guidance

• Full-year operating revenues are forecast at JPY 407.5 billion (+4.7% year-over-year), with operating income projected at JPY 88.0 billion (+15.2%).

• Net income attributable to owners is expected to reach JPY 52.3 billion (+13.1%).

• Dividend forecast remains at 40 yen per share, with a continued focus on maintaining a payout ratio of at least 40%.

• Capital investments are expected to normalize around JPY 100 billion annually, supporting stable free cash flow.

• Basic EPS for the full year is forecast at JPY 90.02.