Tobu Railway (9001): FY2025 Results Summary — Record Net Profit Despite Lower Operating Profit

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

TOBU RAILWAY CO., LTD. reported FY2025 operating revenues of ¥655.4 billion, up ¥23.9 billion year on year, as the Railway, Hotels and SKYTREE TOWN Businesses continued to perform well. Operating profit declined ¥2.7 billion to ¥71.8 billion due to higher maintenance costs in the Railway Business and temporary costs associated with issuing the new TOBU Card, but all four headline profit lines came in ahead of the company plan. Profit attributable to owners of parent rose to ¥55.6 billion, a record high for the third consecutive year, driven in part by progress in reducing cross-shareholdings. The year-end dividend will be increased to ¥37.5, taking the FY2025 annual dividend to ¥70.

Consolidated Results (Full-Year Actual)

Operating revenues rose to ¥655,435 million from ¥631,461 million, an increase of ¥23,974 million, with gains in Transportation (+¥2,591 million), Leisure (+¥14,021 million), Retail Distribution (+¥3,494 million) and Other (+¥5,355 million) more than offsetting a ¥846 million decline in Real Estate. Operating profit fell ¥2,742 million to ¥71,861 million and ordinary profit fell ¥3,885 million to ¥68,831 million. Profit attributable to owners of parent increased ¥4,290 million to ¥55,620 million, helped by extraordinary income of ¥19,370 million against extraordinary losses of ¥8,291 million. ROE improved to 9.5% from 9.4%, while the ratio of operating profit to net sales declined 0.8P to 11.0%. The FY2025 plan figures shown below are those from the announcement on February 4, 2026.

Item (Millions of yen)	FY2025 Results	FY2024 Results	Change	FY2025 Plan
Operating revenues	655,435	631,461	23,974	653,000
Operating profit	71,861	74,604	▲2,742	70,000
Ordinary profit	68,831	72,716	▲3,885	66,000
Extraordinary income	19,370	13,639	5,730	–
Extraordinary losses	8,291	10,448	▲2,156	–
Profit attributable to owners of parent	55,620	51,330	4,290	52,000
Ratio of operating profit to net sales	11.0%	11.8%	▲0.8P	10.7%
Operating profit ROA	4.0%	4.3%	▲0.3P	3.9%
ROE	9.5%	9.4%	0.1P	9.0%
Depreciation	55,213	53,539	1,673	55,000
EBITDA	127,075	128,144	▲1,068	125,000

On the balance sheet, total assets stood at ¥1,863,562 million and total net assets at ¥622,227 million, lifting the equity ratio 1.4P to 33.0%. Interest-bearing debt was ¥789,673 million, an increase of ¥9,419 million, for an interest-bearing debt/EBITDA multiple of 6.2 times. Capital expenditures totalled ¥102,713 million. Cash flows from operating activities were ¥106,640 million and cash flows from investing activities were ▲¥82,720 million.

Segment Results

Transportation operating revenues rose ¥2,591 million to ¥218,646 million as revenues increased in the Railway Business and the Bus and Taxi Business, but operating profit fell ¥3,641 million to ¥27,644 million on higher maintenance costs in the Railway Business. Leisure was the largest growth driver, with operating revenues up ¥14,021 million to ¥189,584 million mainly in the Travel and Hotels Businesses, and operating profit up ¥1,204 million to ¥18,446 million. Real Estate operating revenues slipped ¥846 million to ¥59,075 million as the Real Estate Subdivision Business declined, yet operating profit rose ¥1,147 million to ¥15,892 million on gains in the Real Estate Leasing and SKYTREE TOWN Businesses. Retail Distribution revenues increased ¥3,494 million to ¥176,135 million while operating profit fell ¥1,553 million to ¥6,004 million due to a temporary increase in costs associated with issuing the new TOBU Card. The Other segment posted revenues of ¥92,645 million and operating profit of ¥6,955 million on higher construction orders.

Segment	Metric (Millions of yen)	FY2025 Results	FY2024 Results	Change
Transportation	Operating revenues	218,646	216,054	2,591
Transportation	Operating profit	27,644	31,285	▲3,641
Leisure	Operating revenues	189,584	175,563	14,021
Leisure	Operating profit	18,446	17,242	1,204
Real Estate	Operating revenues	59,075	59,921	▲846
Real Estate	Operating profit	15,892	14,745	1,147
Retail Distribution	Operating revenues	176,135	172,641	3,494
Retail Distribution	Operating profit	6,004	7,558	▲1,553
Other	Operating revenues	92,645	87,290	5,355
Other	Operating profit	6,955	6,339	615
Adjustment	Operating revenues	▲80,652	▲80,010	▲642
Adjustment	Operating profit	▲3,081	▲2,567	▲514
Total	Operating revenues	655,435	631,461	23,974
Total	Operating profit	71,861	74,604	▲2,742

Within Leisure, Travel revenues rose ¥11,013 million to ¥124,034 million and Hotels revenues rose ¥2,557 million to ¥37,456 million with operating profit of ¥8,350 million, while SKYTREE revenues edged down ¥65 million to ¥16,536 million with the number of visitors at 446 against 467 in FY2024 (unit: 10,000 people). In Real Estate, Leasing revenues were ¥36,498 million and SKYTREE TOWN revenues ¥13,913 million, with the number of SKYTREE TOWN visitors at 3,650 (unit: 10,000 people). In Retail Distribution, department store revenues were ¥63,480 million and supermarket revenues ¥75,025 million; sales at the Ikebukuro store rose 4.3% year on year.

Railway Passenger Trends

Tobu Railway Lines carried 877 million passengers in FY2025 versus 858 million in FY2024, with commuter passengers at 542 million and non-commute passengers at 335 million. Total passenger revenue rose to ¥149,307 million from ¥145,831 million. Railways operating revenues within the Transportation segment were ¥164,272 million and railways operating profit was ¥23,583 million. Capital expenditures in Transportation increased ¥10,406 million to ¥53,191 million.

Tobu Railway Lines	FY2025 Results	FY2024 Results	FY2025 Plan
Commuter passengers (1 Million people)	542	533	541
Non-Commute passengers (1 Million people)	335	325	335
(Limited Express) (1 Million people)	7	7	7
Total passengers (1 Million people)	877	858	876
Commuter passenger revenue (Millions of yen)	61,714	60,988	61,616
Non-commute passenger revenue (Millions of yen)	87,593	84,843	87,401
(Limited Express) (Millions of yen)	7,609	7,279	7,592
Total passenger revenue (Millions of yen)	149,307	145,831	149,017

FY2026 Plan

For FY2026 the company plans operating revenues of ¥673,000 million and operating profit of ¥72,000 million, with profit attributable to owners of parent projected at ¥56,000 million — a record high for the fourth consecutive year, driven in part by progress in reducing cross-shareholdings. Revenues are projected to increase in part due to the effect of introducing a variable pricing system in the SKYTREE Business, in addition to maintaining strong performance in the Railway, Travel and Hotels Businesses. Operating profit is expected to increase in part due to the elimination of the temporary costs relating to the issuance of the new TOBU Card, despite depreciation anticipated to increase as capital expenditures in the Railway Business progress. Ordinary profit is planned at ¥63,500 million, down ¥5,331 million.

Item (Millions of yen)	FY2026 Plan	FY2025 Results	Change
Operating revenues	673,000	655,435	17,565
Operating profit	72,000	71,861	139
Ordinary profit	63,500	68,831	▲5,331
Profit attributable to owners of parent	56,000	55,620	380
Ratio of operating profit to net sales	10.7%	11.0%	▲0.3P
Operating profit ROA	3.8%	4.0%	▲0.2P
ROE	8.9%	9.5%	▲0.6P
EBITDA	131,000	127,075	3,925
Depreciation	59,000	55,213	3,787
Interest-bearing debt balance	800,000	789,673	10,327
Capital Expenditures	104,000	102,713	1,287

By segment, the FY2026 plan calls for Transportation operating revenues of ¥221,400 million with operating profit down ¥3,344 million to ¥24,300 million on higher railway depreciation; Leisure revenues of ¥199,200 million and operating profit of ¥19,300 million; Real Estate revenues of ¥63,200 million with operating profit broadly flat at ¥15,800 million; Retail Distribution revenues of ¥175,400 million with operating profit rising ¥1,996 million to ¥8,000 million; and Other revenues of ¥95,000 million with operating profit of ¥7,100 million.

Shareholder Returns

The basic policy is that, while maintaining an equity ratio of 30% or more, during the period of the Medium-Term Business Plan (FY2024-2027) the company will aim for a total return ratio of 50% through dividends and flexible share buybacks, and will also consider further enhancing shareholder returns based on profit growth from FY2028 onward. This raises the previous projection of 40% or more to a 50% target. The FY2025 annual dividend is ¥70 per share, and the FY2026 annual dividend is projected to increase by ¥5 to ¥75 after comprehensively taking into account recent business result levels, improvements in capital efficiency and other factors — an increase for the fifth consecutive year. Share buybacks were implemented for the second consecutive year, at ¥10.0 billion in FY2025 following ¥17.6 billion in FY2024. DOE is to be raised in phases with 2.2% or higher in mind.

Item	FY2024	FY2025
Annual dividend per share	¥60	¥70
Total dividends	¥12.0 billion	¥13.7 billion
Share buybacks	¥17.6 billion	¥10.0 billion
ROE	9.4%	9.5%
DOE	2.2%	2.4%

Medium-Term Plan and Long-Term Management Vision

Upon achieving the operating profit target of ¥74.0 billion for FY2027 in the Medium-Term Business Plan, the company aims to reach operating profit of ¥100.0 billion or more in the mid-2030s by accelerating the Tourism Business and area development and implementing new measures such as mutual through train operations with the Tokyo Metro Yurakucho Line. Cash allocation during the Medium-Term Business Plan period assumes procurement of approximately ¥430.0 billion from operating cash flow, approximately ¥95.0 billion from asset replacement and approximately ¥100.0 billion from borrowings, distributed to major priority strategic investments of approximately ¥315.0 billion, maintenance and update investments of approximately ¥175.0 billion and shareholder returns of approximately ¥65.0 billion. The company plans to reduce cross-shareholdings to less than 10% of FY2027 consolidated net assets and to maintain the interest-bearing debt to EBITDA multiple in the 6-range.

In the Hotels Business the company is aiming for operating profit of ¥12.0 billion by the mid-2030s, from ¥8.3 billion in FY2025, through new hotels including the Nihonbashi 3-chome Project (opens in FY2030), the Ginza 7-chome Project (opens in FY2031) and the Nikko KANAYA Hotel renewal (opens in FY2029). At TOKYO SKYTREE, a variable pricing system in which fees are set daily was introduced on April 1, 2026, and LOOK UP CAFE TOKYO SKYTREE opened on May 22, 2026. Group inbound revenue reached ¥33.5 billion in FY2025 and is targeted at ¥39.3 billion in FY2028, while Group tourism revenue in the Nikko area was ¥17.1 billion in FY2025 with a target of ¥20.0 billion.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.