Komori
Financial results presentation9021West Japan Railway CompanyTransportation and logistics

Briefing on Results for the Second Quarter of the Fiscal Year Ending March 2027

In the first half, revenue exceeded the same period of the previous year as the company captured domestic demand, while operating income declined due to higher personnel and repair expenses caused by inflation. As first-half results exceeded the initial forecast, the full-year forecasts for revenue, operating income, ordinary income and net income were revised upward.

Worth reading
79Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
200
¥ billions (upward revision from the initial forecast for full-year consolidated operating income)
Wording
Definitive
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter (first half) of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥8,792 100 million +0.9%operating revenue
Operating profit¥1,154 hundred million-6.1%
Ordinary income¥1,064 hundred million-7.5%
Net income¥737 100 million -15.0%interim net income attributable to owners of the parent
Results for the three months of the current quarterStandalone second-quarter figures for FY27.3 are provided for certain KPIs. Standalone quarterly figures for consolidated revenue and profit are Not disclosed.
Full-year earnings forecast
Operating revenue
¥18,670 hundred million
Operating Expenses
¥16,820 hundred million
Operating profit
¥1,850 hundred million
Ordinary income
¥1,660 hundred million
Profit attributable to owners of the parent
¥1,190 hundred million
EBITDA
¥3,740 hundred million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。Only the full-year progress rate for inbound revenue, at 46%, is disclosed. Progress rates for major consolidated line items are Not disclosed.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The full-year earnings forecast was revised upward because first-half results exceeded the initial forecast.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Domestic DemandFirst-half results +¥32.3 billion; full-year forecast +¥44.2 billion
  • Inbound TourismFirst-half results +¥0.2 billion; full-year forecast +¥2 billion
  • Fading of the Expo effectFirst-half results -¥18.6 billion; full-year forecast -¥21.2 billion
  • Revision of the impact of the situation in the Middle EastImproved the impact on operating income by ¥7 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • AssumptionsCrude oil prices (annual average)
    Initial forecast100$/B
    Current forecast90$/B
  • AssumptionsImpact on the number of international visitors to Japan
    Initial forecast-0.8 million people
    Current forecast±0 million people
  • AssumptionsImpact on GDP
    Initial forecast▲0.3%
    Current forecast±0.0%
New initiatives
  • Review of reserved-seat limited express fares for Nozomi and Mizuho from July 2027
  • Review of Sanyo Shinkansen Green Car fares from December 2027
  • Acquisition of all shares in 株式会社カネコ through joint investment by 3 JR companies
  • Use of drones for railway facility inspections
  • Practical implementation planned for FY2027 of an AI-powered system that automatically creates work plans for rolling stock depot operations
  • Real estate development and redevelopment, including LUCUA SOUTH
Key KPIsA metric the company considers important as a management benchmark.
  • Passenger-kilometersApproximately +3% year on year
    Year on year against the same period last year+3.0%
  • Inbound revenue¥387 hundred million
    Year on year against the same period last year94%
  • Shopping-centre revenue (second quarter)¥293 hundred million
    Year on year against the same period last yearRevenue increased year on year
  • Hotel ADR (second quarter)¥21,100
    Year on year against the same period last year-3.0%
  • Number of international visitors to Japan (FY27.3 first-half basis)2,034 million customers
    Year on year against the same period last year98%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Hotel ADR¥21,100 (second quarter)
    Year on year against the same period last year97%
  • International visitors to Japan20.34 million people (actuals for April-August)
    Year on year against the same period last year98%
  • Passenger-kilometersApproximately +3% year on year
    Year on year against the same period last year+3.0%
Segment results
Mobility
Operating revenue
¥5,460 hundred million+3.4%
Operating profit
¥842 hundred million-2.4%
Distribution
Operating revenue
¥1,115 hundred million-6.3%
Operating profit
¥72 hundred million-29.5%
Real Estate
Operating revenue
¥1,246 hundred million+0.9%
Operating profit
¥240 hundred million-5.7%
Travel and regional solutions
Operating revenue
¥832 hundred million-4.5%
Operating profit
¥-9 hundred million
Medium-term management plan targets
Target fiscal yearFiscal 2030 (fiscal year ending March 2031)
Operating profit¥230 billion
Of which: Lifestyle services and infrastructure solutions¥135.0 billion
EBITDA¥470 billion
ROICApproximately 4%
ROEApproximately 9%
Net interest-bearing debt/EBITDAApproximately 6x
Financial targets
ROICApproximately 4% in FY2030; actual 5.0% in FY26.3
ROEApproximately 9% in FY2030; actual 10.8% in FY26.3
Net interest-bearing debt/EBITDAApproximately 6x in FY2030; actual 3.7x in FY26.3
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Impact of the situation in the Middle East on operating profitCurrent forecast: -¥6 billion (of which standalone: -¥5.5 billion)
DetailsHigher crude oil and coal prices, fewer inbound visitors, and a decline in business and travel demand due to worsening corporate performance in Japan
Annual Dividend
Annual dividend per share¥97.5
Acquisition of treasury shares
The company intends to implement purchases when opportunities arise, while assessing progress under the medium-term management plan. The purchase limit, number of shares and period are Not disclosed.
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter (first half) of the fiscal year ending March 2027
Net Sales¥8,792 100 million (operating revenue) (YoY +0.9%)
Operating profit¥1,154 hundred million (YoY -6.1%)
Ordinary income¥1,064 hundred million (YoY -7.5%)
Net income¥737 100 million (interim net income attributable to owners of the parent) (YoY -15.0%)
Results for the three months of the current quarterStandalone second-quarter figures for FY27.3 are provided for certain KPIs. Standalone quarterly figures for consolidated revenue and profit are Not disclosed.
Full-year earnings forecastOperating revenue ¥18,670 hundred million / Operating Expenses ¥16,820 hundred million / Operating profit ¥1,850 hundred million / Ordinary income ¥1,660 hundred million / Profit attributable to owners of the parent ¥1,190 hundred million / EBITDA ¥3,740 hundred million
Progress against full-year forecastOnly the full-year progress rate for inbound revenue, at 46%, is disclosed. Progress rates for major consolidated line items are Not disclosed.
Self-assessment against the planThe full-year earnings forecast was revised upward because first-half results exceeded the initial forecast.
Segment resultsMobility Operating revenue ¥5,460 hundred million (YoY +3.4%) / Operating profit ¥842 hundred million (YoY -2.4%) / Distribution Operating revenue ¥1,115 hundred million (YoY -6.3%) / Operating profit ¥72 hundred million (YoY -29.5%) / Real Estate Operating revenue ¥1,246 hundred million (YoY +0.9%) / Operating profit ¥240 hundred million (YoY -5.7%) / Travel and regional solutions Operating revenue ¥832 hundred million (YoY -4.5%) / Operating profit ¥-9 hundred million
Breakdown of Factors Affecting the ChangeFactors Domestic Demand / Amount First-half results +¥32.3 billion; full-year forecast +¥44.2 billion, Factors Inbound Tourism / Amount First-half results +¥0.2 billion; full-year forecast +¥2 billion, Factors Fading of the Expo effect / Amount First-half results -¥18.6 billion; full-year forecast -¥21.2 billion, Factors Revision of the impact of the situation in the Middle East / Amount Improved the impact on operating income by ¥7 billion
Key KPIsIndicator name Passenger-kilometers / Value Approximately +3% year on year / Year on year against the same period last year 3 %, Indicator name Inbound revenue / Value ¥387 hundred million / Year on year against the same period last year 94%, Indicator name Shopping-centre revenue (second quarter) / Value ¥293 hundred million / Year on year against the same period last year Revenue increased year on year, Indicator name Hotel ADR (second quarter) / Value ¥21,100 / Year on year against the same period last year ¥-3, Indicator name Number of international visitors to Japan (FY27.3 first-half basis) / Value 2,034 million customers / Year on year against the same period last year 98%
Unit price and quantity metricsIndicator name Hotel ADR / Value ¥21,100 (second quarter) / Year on year against the same period last year 97%, Indicator name International visitors to Japan / Value 20.34 million people (actuals for April-August) / Year on year against the same period last year 98%, Indicator name Passenger-kilometers / Value Approximately +3% year on year / Year on year against the same period last year 3 %
Assumptions Underlying the Business OutlookAssumptions Crude oil prices (annual average) / Initial forecast 100$/B / Current forecast 90$/B, Assumptions Impact on the number of international visitors to Japan / Initial forecast -0.8 million people / Current forecast ±0 million people, Assumptions Impact on GDP / Initial forecast ▲0.3% / Current forecast ±0.0%
Risk amount incorporated into the outlookImpact of the situation in the Middle East on operating profit Current forecast: -¥6 billion (of which standalone: -¥5.5 billion) / Details Higher crude oil and coal prices, fewer inbound visitors, and a decline in business and travel demand due to worsening corporate performance in Japan
Medium-term management plan targetsTarget fiscal year Fiscal 2030 (fiscal year ending March 2031) / Operating profit ¥230 billion / Of which: Lifestyle services and infrastructure solutions ¥135.0 billion / EBITDA ¥470 billion / ROIC Approximately 4% / ROE Approximately 9% / Net interest-bearing debt/EBITDA Approximately 6x
Financial targetsROIC Approximately 4% in FY2030; actual 5.0% in FY26.3 / ROE Approximately 9% in FY2030; actual 10.8% in FY26.3 / Net interest-bearing debt/EBITDA Approximately 6x in FY2030; actual 3.7x in FY26.3
Annual DividendAnnual dividend per share ¥97.5 / Interim Not disclosed / End of period Not disclosed
Acquisition of treasury sharesThe company intends to implement purchases when opportunities arise, while assessing progress under the medium-term management plan. The purchase limit, number of shares and period are Not disclosed.
New initiativesReview of reserved-seat limited express fares for Nozomi and Mizuho from July 2027, Review of Sanyo Shinkansen Green Car fares from December 2027, Acquisition of all shares in 株式会社カネコ through joint investment by 3 JR companies, Use of drones for railway facility inspections, Practical implementation planned for FY2027 of an AI-powered system that automatically creates work plans for rolling stock depot operations, Real estate development and redevelopment, including LUCUA SOUTH
Items this document does not state (10)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesNumber of stores and locationsNumber of employeesPayout ratioCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In addition to first-half results exceeding the initial forecast, the revision reflected strong transportation revenue, particularly from the Shinkansen, expense progress, steady performance in the distribution business and strong performance in the shopping-centre business. The negative impact of the situation in the Middle East on operating income was also revised from ¥13 billion to ¥6 billion.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Briefing on Results for the Second Quarter of the Fiscal Year Ending March 2027 | West Japan Railway Company (9021) timely disclosure | Komori