Tokyu (9005) Q1 2026 earnings summary

Executive summary

• Operating revenue and profit declined year-over-year due to the absence of large real estate sales and lower segment profits, but both exceeded internal forecasts on strong Hotel and Resort and Life Service performance.

• Profit attributable to owners of parent fell 15.3% year-over-year to ¥25.2B, despite higher investment gains from equity-method affiliates.

• Comprehensive income dropped 44.1% year-over-year to ¥19.8B.

• Hotel and Resort business saw significant growth, driven by increased inbound demand and higher ADR.

Financial highlights

• 1Q FY2025 operating revenue: ¥261.3B (down 4.3% YoY), operating profit: ¥32.3B (down 18.4% YoY).

• Profit attributable to owners of parent: ¥25.2B (down 15.3% YoY); EPS: ¥44.02 (down ¥5.79 YoY).

• EBITDA: ¥59.7B (down 7.5% YoY); business profit: ¥32.4B (down 17.5% YoY).

• Ordinary profit for Q1 FY2026 was ¥35.6B, a 14.0% decrease year-over-year.

• Equity ratio improved to 31.3% from 30.7% at the end of the previous fiscal year.

Outlook and guidance

• Full-year FY2026 operating revenue forecast: ¥1,072.0B (+1.6% YoY); operating profit: ¥100.0B (−3.4% YoY).

• Profit attributable to owners of parent projected at ¥80.0B (+0.4% YoY); EPS forecast: ¥139.23.

• Annual dividend forecast is ¥28.00 per share, unchanged from the previous forecast.

• Hotel and Resort expected to benefit from rising occupancy and ADR; transportation demand and inbound tourism remain key drivers.

• Real Estate Sales profit expected to decline due to fewer condominium deliveries.