Tokyo Metro (9023) Q4 2025 earnings summary

Executive summary

• Operating revenues for FY2025.3 rose 4.8% year-over-year to JPY 407.8 billion, with net income attributable to owners up 16.2% to JPY 53.7 billion, driven by strong passenger transportation and recovery in all business segments.

• The company advanced its mid-term management plan, focusing on cost structure reform, safety, new railway construction, and urban development initiatives.

• Major investments included security upgrades, disaster countermeasures, accessibility improvements, and the launch of new services and technologies such as contactless ticketing and generative AI.

• All segments saw revenue growth, with transportation benefiting from increased passenger numbers and real estate from new property openings, though real estate income declined due to higher expenses.

• Environmental initiatives accelerated, including expanded use of renewable energy and participation in recycling projects.

Financial highlights

• Operating income increased 13.9% year-over-year to JPY 86.9 billion; EBITDA rose 5.9% to JPY 158.9 billion.

• Comprehensive income reached JPY 66.7 billion, up 43.0% year-over-year.

• Cash and cash equivalents at year-end were JPY 73.8 billion, down JPY 16.9 billion from prior year.

• Dividend per share increased to JPY 40.00, with a payout ratio of 43.2%.

• Equity-to-asset ratio improved to 35.3%; net interest-bearing debt/EBITDA multiple at 6.4x.

Outlook and guidance

• FY2026.3 forecast: operating revenues to rise 3.1% to JPY 420.6 billion, net income attributable to owners to increase 8.3% to JPY 58.2 billion.

• Management targets for FY2028.3 include consolidated ROE of 7.7%, operating income of JPY 93.0 billion, and net debt/EBITDA ratio of 6.3x.

• Capital investment plan of JPY 400 billion over FY2026.3–FY2028.3, with JPY 50 billion for new railway lines.

• Dividend payout ratio target set at 40% or more, with interim dividends introduced from FY2026.3.

• Continued growth expected from increased passenger revenues and ongoing economic recovery.