Komori
Financial results presentation9048Nagoya Railroad Co., Ltd.Transportation and Logistics

Fiscal Year Ending March 2026 Financial Results Presentation Materials for Investors

For FY2026, operating revenue was largely unchanged, while operating income declined 14.0% year on year and net income attributable to owners of the parent declined 39.2%. For FY2027, the Company forecasts operating income of ¥45.0 billion and net income of ¥39.0 billion, and plans to proceed with asset sales, a review of its business portfolio and enhanced shareholder returns.

Worth reading
66In focus
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
-5890
¥ million (year-on-year change in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥691,583 million+0.1%
Operating profit¥36,185 million-14.0%
Ordinary income¥38,363 million-19.5%
Net income¥22,954 million -39.2%net income attributable to owners of the parent
Full-year earnings forecast
Operating profit
450 Hundreds of millions of yen
Net income for the current fiscal year
390 Hundreds of millions of yen
Annual dividend per share
¥60
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating income is expected to fall short of the target, while ROE and the net interest-bearing debt/EBITDA multiple are expected to meet their targets
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in personnel expenses139 Hundreds of millions of yen
  • Increase in depreciation and amortization expense46 Hundreds of millions of yen
  • Decrease in cost of merchandise and products sold-142 Hundreds of millions of yen
  • Decrease in operating profit from the real estate business-53 Hundreds of millions of yen
  • Decrease in operating income from the transportation business-39 Hundreds of millions of yen
  • Increase in operating income from the railway and transportation business22 Hundreds of millions of yen
  • Deterioration in non-operating income and expenses-34 Hundreds of millions of yen
  • Deterioration in extraordinary income and expenses-31 Hundreds of millions of yen
New initiatives
  • Re-examine and review the Nagoya Station area redevelopment plan on the assumption that the investment scale will be reduced
  • Establish new aviation, information and technology services businesses and reorganize the current 7 segments into 5 segments
  • Sale of the transportation (freight forwarding) business to an external party
  • Transfer of the condominium business from the Yahagi Construction Group as part of the real estate business
  • Collaboration with Tosei in the real estate business
  • Introduce a minimum annual dividend of ¥60 per share
  • Add shareholder benefit ride passes for long-term shareholders
Key KPIsA metric the company considers important as a management benchmark.
  • Rail and tram passenger numbers375,080 thousand customers
    Year on year against the same period last year+2.3%
  • Non-commuter passengers126,647 thousand customers
    Year on year against the same period last year+4.4%
  • Commuter passengers151,284 thousand customers
    Year on year against the same period last year+1.6%
  • Student passengers97,149 thousand customers
    Year on year against the same period last year+0.8%
  • Number of condominium units handed over727 units
    Year on year against the same period last year-18.6%
  • Number of parking spaces owned92,629 Units
    Year on year against the same period last year+2.8%
  • Number of parking facilities owned4,002 Locations
    Year on year against the same period last year+2.9%
  • Number of consolidated subsidiaries109 companies
  • Number of equity-method affiliates15 companies
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Rail and tram passenger numbers375,080 thousand customers
    Year on year against the same period last year+2.3%
  • Railway and rail transit passenger revenue954 Hundreds of millions of yen
    Year on year against the same period last year+3.7%
  • Hotel occupancy rate
  • Average hotel room rate
Segment results
  • Transportation Business
    Net Sales¥178,272 million (YoY +11.5%)
    Operating profit¥21,803 million (YoY +11.2%)
  • Transportation Business
    Net Sales¥170,758 million (YoY -5.2%)
    Operating profit¥-7,711 million
  • Real Estate Business
    Net Sales¥114,779 million (YoY -11.0%)
    Operating profit¥13,573 million (YoY -28.4%)
  • Leisure and services business
    Net Sales¥106,779 million (YoY +4.0%)
    Operating profit¥3,429 million (YoY +34.7%)
  • Distribution Business
    Net Sales¥69,635 million (YoY +0.8%)
    Operating profit¥-1,900 million
  • Aviation-Related Services
    Net Sales¥32,635 million (YoY +9.6%)
    Operating profit¥2,583 million (YoY +14.0%)
  • Other Businesses
    Net Sales¥69,584 million (YoY +2.4%)
    Operating profit¥5,340 million (YoY +15.5%)
Medium-term management plan targets
  • Operating income
    Target value500
    Target fiscal yearFiscal 2026
  • ROE
    Target valueApproximately 8%
    Target fiscal yearFiscal 2026
  • Net interest-bearing debt/EBITDA multiple
    Target valueIn the 6x range
    Target fiscal yearFiscal 2026
Financial targets
  • ROE
    Target valueApproximately 8%
    Actual value4.8% (FY2025)
  • Net interest-bearing debt/EBITDA multiple
    Target valueIn the 6x range
    Actual value7.6x (FY2025)
Capital expenditures
¥155,980 million
Annual Dividend
Annual dividend per share¥60
Payout ratio
Maintain a consolidated payout ratio of at least 30%. The forecast for FY2026 is at the 30% level
Acquisition of treasury shares
Implement flexibly as necessary
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥691,583 million (YoY +0.1%)
Operating profit¥36,185 million (YoY -14.0%)
Ordinary income¥38,363 million (YoY -19.5%)
Net income¥22,954 million (net income attributable to owners of the parent) (YoY -39.2%)
Full-year earnings forecastOperating profit 450 Hundreds of millions of yen / Net income for the current fiscal year 390 Hundreds of millions of yen / Annual dividend per share ¥60
Self-assessment against the planOperating income is expected to fall short of the target, while ROE and the net interest-bearing debt/EBITDA multiple are expected to meet their targets
Segment resultsSegment Transportation Business / Net Sales ¥178,272 million (YoY +11.5%) / Operating profit ¥21,803 million (YoY +11.2%), Segment Transportation Business / Net Sales ¥170,758 million (YoY -5.2%) / Operating profit ¥-7,711 million, Segment Real Estate Business / Net Sales ¥114,779 million (YoY -11.0%) / Operating profit ¥13,573 million (YoY -28.4%), Segment Leisure and services business / Net Sales ¥106,779 million (YoY +4.0%) / Operating profit ¥3,429 million (YoY +34.7%), Segment Distribution Business / Net Sales ¥69,635 million (YoY +0.8%) / Operating profit ¥-1,900 million, Segment Aviation-Related Services / Net Sales ¥32,635 million (YoY +9.6%) / Operating profit ¥2,583 million (YoY +14.0%), Segment Other Businesses / Net Sales ¥69,584 million (YoY +2.4%) / Operating profit ¥5,340 million (YoY +15.5%)
Breakdown of Factors Affecting the ChangeFactors Increase in personnel expenses / Amount 139 Hundreds of millions of yen, Factors Increase in depreciation and amortization expense / Amount 46 Hundreds of millions of yen, Factors Decrease in cost of merchandise and products sold / Amount -142 Hundreds of millions of yen, Factors Decrease in operating profit from the real estate business / Amount -53 Hundreds of millions of yen, Factors Decrease in operating income from the transportation business / Amount -39 Hundreds of millions of yen, Factors Increase in operating income from the railway and transportation business / Amount 22 Hundreds of millions of yen, Factors Deterioration in non-operating income and expenses / Amount -34 Hundreds of millions of yen, Factors Deterioration in extraordinary income and expenses / Amount -31 Hundreds of millions of yen
Key KPIsIndicator name Rail and tram passenger numbers / Value 375,080 thousand customers / Year on year against the same period last year 2.3 thousand customers, Indicator name Non-commuter passengers / Value 126,647 thousand customers / Year on year against the same period last year 4.4 thousand customers, Indicator name Commuter passengers / Value 151,284 thousand customers / Year on year against the same period last year 1.6 thousand customers, Indicator name Student passengers / Value 97,149 thousand customers / Year on year against the same period last year 0.8 thousand customers, Indicator name Number of condominium units handed over / Value 727 units / Year on year against the same period last year -18.6 units, Indicator name Number of parking spaces owned / Value 92,629 Units / Year on year against the same period last year 2.8 Units, Indicator name Number of parking facilities owned / Value 4,002 Locations / Year on year against the same period last year 2.9 Locations, Indicator name Number of consolidated subsidiaries / Value 109 companies / Year on year against the same period last year Not disclosed, Indicator name Number of equity-method affiliates / Value 15 companies / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Rail and tram passenger numbers / Value 375,080 thousand customers / Year on year against the same period last year 2.3 thousand customers, Indicator name Railway and rail transit passenger revenue / Value 954 Hundreds of millions of yen / Year on year against the same period last year 3.7 Hundreds of millions of yen, Indicator name Hotel occupancy rate / Value Not disclosed / Year on year against the same period last year Not disclosed, Indicator name Average hotel room rate / Value Not disclosed / Year on year against the same period last year Not disclosed
Medium-term management plan targetsIndicator name Operating income / Target value 500 Hundreds of millions of yen / Target fiscal year Fiscal 2026, Indicator name ROE / Target value Approximately 8% / Target fiscal year Fiscal 2026, Indicator name Net interest-bearing debt/EBITDA multiple / Target value In the 6x range / Target fiscal year Fiscal 2026
Financial targetsIndicator name ROE / Target value Approximately 8% / Actual value 4.8% (FY2025), Indicator name Net interest-bearing debt/EBITDA multiple / Target value In the 6x range / Actual value 7.6x (FY2025)
Annual DividendAnnual dividend per share ¥60 / Breakdown Not disclosed
Payout ratioMaintain a consolidated payout ratio of at least 30%. The forecast for FY2026 is at the 30% level
Acquisition of treasury sharesImplement flexibly as necessary
Capital expenditures¥155,980 million
New initiativesRe-examine and review the Nagoya Station area redevelopment plan on the assumption that the investment scale will be reduced, Establish new aviation, information and technology services businesses and reorganize the current 7 segments into 5 segments, Sale of the transportation (freight forwarding) business to an external party, Transfer of the condominium business from the Yahagi Construction Group as part of the real estate business, Collaboration with Tosei in the real estate business, Introduce a minimum annual dividend of ¥60 per share, Add shareholder benefit ride passes for long-term shareholders
Items this document does not state (12)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookOrders 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 FY2026, profit at each stage declined because operating expenses, including personnel expenses and depreciation, increased, while gains on the recognition of negative goodwill fell away and income taxes and other taxes increased. Operating income declined in the real estate and transportation businesses, while increasing in the railway and transportation business.

How to read this page

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Fiscal Year Ending March 2026 Financial Results Presentation Materials for Investors | Nagoya Railroad Co., Ltd. (9048) timely disclosure | Komori