Komori
Earnings presentation9506Tohoku Electric Power Company,IncorporatedElectricity and gas

Fiscal 2025 Financial Results Presentation

In FY2025, earnings improved following the restart of Onagawa Unit 2, but revenue and profit declined due to worsening market and sales conditions, higher power supply-demand balancing costs, and losses on the fair value measurement of electricity forward transactions. The FY2026 earnings outlook has been left undetermined due to uncertainty over fuel prices, while the annual dividend forecast is ¥40 per share.

Worth reading
63In 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
1303
¥100 million (year-on-year decrease in consolidated ordinary profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFY202511 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥23,724 hundred million-10.3%
Operating profit¥1,603 hundred million-42.8%
Ordinary income¥1,264 hundred million-50.8%
Net income¥849 hundred million-53.5%
Full-year earnings forecastFY2026 earnings outlook: not determined. FY2026 annual dividend forecast: ¥40 per share
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impact of the restart of Onagawa Unit 2¥300 hundred million
  • Changes in market and sales conditions¥-420 hundred million
  • Transmission and Distribution Business¥-214 hundred million
  • Other¥-354 hundred million
  • Time-lag impact of the fuel cost adjustment system¥-50 hundred million
  • Fair value measurement impact¥-565 hundred million
  • Consolidation adjustments¥147 hundred million
New initiatives
  • Construction of new container-type data centers on idle land and GPU-oriented colocation services
  • Joint study with partner companies toward the development of distributed AI data centers
  • Establishment of 東北電力ｅソライフ株式会社
  • Launch of the 「よりそう＋スマートタイム」 tariff plan, including an EcoCute discount
  • Nationwide rollout of renewable energy aggregation services
  • Nationwide rollout of grid-scale battery storage operations
  • Replacement of Higashi-Niigata Thermal Power Station Unit 6
  • Use of agriculture-derived carbon credits
  • Establishment of a Regional Co-creation Program
  • 「より、そう、NFT」 project using NFTs
Key KPIsA metric the company considers important as a management benchmark.
  • Retail electricity sales volume582 100 million kWh
    Year on year against the same period last yearDown 2.7 billion kWh year on year
  • Wholesale electricity sales volume206 100 million kWh
    Year on year against the same period last yearUp 3.5 billion kWh year on year
  • Total electricity sales volume789 100 million kWh
    Year on year against the same period last yearUp 1.1% year on year
  • Area demand752 100 million kWh
    Year on year against the same period last year100.0%
  • Equity ratio19.4 %
    Year on year against the same period last yearUp 1.1 percentage points
  • Interest-bearing debt¥34,791 hundred million
    Year on year against the same period last yearUp ¥142.2 billion year on year
Segment results
  • Generation and Retail
    Net Sales¥19,817 hundred million (YoY -10.0%)
    Ordinary income¥1,266 hundred million (YoY -48.4%)
  • Transmission and Distribution
    Net Sales¥9,213 hundred million (YoY -2.6%)
    Ordinary income¥-10 hundred million (YoY -105.0%)
  • Other
    Net Sales¥1,816 hundred million (YoY -33.9%)
    Ordinary income¥159 hundred million (YoY -24.3%)
Medium-term management plan targets
  • Consolidated ordinary profit, excluding the time-lag impact of the fuel cost adjustment system
    Target fiscal yearFiscal 2026
    Target value¥190 billion
  • Consolidated ordinary profit, excluding the time-lag impact of the fuel cost adjustment system
    Target fiscal yearFY2030
    Target value¥200 billion or more
  • Consolidated capital adequacy ratio
    Target fiscal yearFiscal 2026
    Target valueApproximately 20%
  • Consolidated capital adequacy ratio
    Target fiscal yearFY2030
    Target value25% or higher
  • Consolidated ROIC
    Target fiscal yearFiscal 2026
    Target valueApproximately 3.5%
  • Consolidated ROIC
    Target fiscal yearFY2030
    Target value3.5% or higher
Financial targets
  • Consolidated capital adequacy ratio
    Actual value19.4%
    Target valueApproximately 20% in FY2026 and 25% or more in FY2030
  • Consolidated ROIC
    Actual value2.6% (3.6% excluding fair value measurement impact)
    Target valueApproximately 3.5% in FY2026 and 3.5% or more in FY2030
Market Size / Share
Approximately 22% share for new electricity suppliers in the Tohoku region. Electricity demand in eastern Japan's 50 Hz region is expected to increase by approximately 9% (approximately 32.6 billion kWh) over the next 10 years
Orders received and order backlog
Cumulative orders received for corporate PPAs: approximately ¥153 billion. Order backlog: not disclosed
Capital expenditures
¥4,226 hundred million
Annual Dividend
¥40 in FY2025 and a ¥40 forecast for FY2026 (¥20 interim and ¥20 year-end)
Payout ratio
Not disclosed. Policy states that DOE of 2% is used as a guideline
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFY2025
Net Sales¥23,724 hundred million (YoY -10.3%)
Operating profit¥1,603 hundred million (YoY -42.8%)
Ordinary income¥1,264 hundred million (YoY -50.8%)
Net income¥849 hundred million (YoY -53.5%)
Full-year earnings forecastFY2026 earnings outlook: not determined. FY2026 annual dividend forecast: ¥40 per share
Segment resultsSegment Generation and Retail / Net Sales ¥19,817 hundred million (YoY -10.0%) / Ordinary income ¥1,266 hundred million (YoY -48.4%), Segment Transmission and Distribution / Net Sales ¥9,213 hundred million (YoY -2.6%) / Ordinary income ¥-10 hundred million (YoY -105.0%), Segment Other / Net Sales ¥1,816 hundred million (YoY -33.9%) / Ordinary income ¥159 hundred million (YoY -24.3%)
Breakdown of Factors Affecting the ChangeFactors Impact of the restart of Onagawa Unit 2 / Amount ¥300 hundred million, Factors Changes in market and sales conditions / Amount ¥-420 hundred million, Factors Transmission and Distribution Business / Amount ¥-214 hundred million, Factors Other / Amount ¥-354 hundred million, Factors Time-lag impact of the fuel cost adjustment system / Amount ¥-50 hundred million, Factors Fair value measurement impact / Amount ¥-565 hundred million, Factors Consolidation adjustments / Amount ¥147 hundred million
Key KPIsIndicator name Retail electricity sales volume / Value 582 100 million kWh / Year on year against the same period last year Down 2.7 billion kWh year on year, Indicator name Wholesale electricity sales volume / Value 206 100 million kWh / Year on year against the same period last year Up 3.5 billion kWh year on year, Indicator name Total electricity sales volume / Value 789 100 million kWh / Year on year against the same period last year Up 1.1% year on year, Indicator name Area demand / Value 752 100 million kWh / Year on year against the same period last year 100.0%, Indicator name Equity ratio / Value 19.4 % / Year on year against the same period last year Up 1.1 percentage points, Indicator name Interest-bearing debt / Value ¥34,791 hundred million / Year on year against the same period last year Up ¥142.2 billion year on year
Medium-term management plan targetsIndicator Consolidated ordinary profit, excluding the time-lag impact of the fuel cost adjustment system / Target fiscal year Fiscal 2026 / Target value ¥190 billion, Indicator Consolidated ordinary profit, excluding the time-lag impact of the fuel cost adjustment system / Target fiscal year FY2030 / Target value ¥200 billion or more, Indicator Consolidated capital adequacy ratio / Target fiscal year Fiscal 2026 / Target value Approximately 20%, Indicator Consolidated capital adequacy ratio / Target fiscal year FY2030 / Target value 25% or higher, Indicator Consolidated ROIC / Target fiscal year Fiscal 2026 / Target value Approximately 3.5%, Indicator Consolidated ROIC / Target fiscal year FY2030 / Target value 3.5% or higher
Financial targetsIndicator Consolidated capital adequacy ratio / Actual value 19.4% / Target value Approximately 20% in FY2026 and 25% or more in FY2030, Indicator Consolidated ROIC / Actual value 2.6% (3.6% excluding fair value measurement impact) / Target value Approximately 3.5% in FY2026 and 3.5% or more in FY2030
Annual Dividend¥40 in FY2025 and a ¥40 forecast for FY2026 (¥20 interim and ¥20 year-end)
Payout ratioNot disclosed. Policy states that DOE of 2% is used as a guideline
Capital expenditures¥4,226 hundred million
Orders received and order backlogCumulative orders received for corporate PPAs: approximately ¥153 billion. Order backlog: not disclosed
Market Size / ShareApproximately 22% share for new electricity suppliers in the Tohoku region. Electricity demand in eastern Japan's 50 Hz region is expected to increase by approximately 9% (approximately 32.6 billion kWh) over the next 10 years
New initiativesConstruction of new container-type data centers on idle land and GPU-oriented colocation services, Joint study with partner companies toward the development of distributed AI data centers, Establishment of 東北電力ｅソライフ株式会社, Launch of the 「よりそう＋スマートタイム」 tariff plan, including an EcoCute discount, Nationwide rollout of renewable energy aggregation services, Nationwide rollout of grid-scale battery storage operations, Replacement of Higashi-Niigata Thermal Power Station Unit 6, Use of agriculture-derived carbon credits, Establishment of a Regional Co-creation Program, 「より、そう、NFT」 project using NFTs
Items this document does not state (13)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAcquisition of treasury sharesKey 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.

Lower retail electricity sales volume, changes in market and sales conditions, higher power supply-demand balancing costs in the transmission and distribution business, the impact of fair value measurement on electricity forward transactions and other items following a surge in fuel and electricity market prices caused by the worsening situation in the Middle East, and YURTEC becoming an equity-method affiliate.

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Fiscal 2025 Financial Results Presentation | Tohoku Electric Power Company,Incorporated (9506) timely disclosure | Komori