Hankyu Hanshin Holdings (9042): FY2025 Results Summary — Record Highs on Expo 2025 Demand and Condominium Sales

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

Note: Hankyu Hanshin Holdings labels the year covered in this article as “Fiscal 2026 (Ended March 2026)”. This site classifies the most recently completed fiscal year as FY2025 in the article title and URL; all labels, tables and figures below follow the company’s own materials.

Hankyu Hanshin Holdings reported higher revenue and higher profit for Fiscal 2026, with the materials marking operating revenue, operating profit, ordinary profit and profit attributable to owners of parent as record highs. The company states that revenue and profit increased on the back of a significant increase in revenue from condominium sales in the Real Estate segment as well as demand captured mainly in the Urban Transportation segment and Hotel business in association with the Expo 2025 Osaka, Kansai, Japan and strong performance in the Sports business following the Hanshin Tigers’ victory in the league championship. Business profit of ¥128.6 billion exceeded the company’s initial forecast of ¥118 billion under its Long-Term Management Plan, and included special factors of ¥7.8 billion from the Expo 2025 Osaka, Kansai, Japan and the Hanshin Tigers championship victory.

Consolidated Results (Full-Year Actual)

Operating revenue rose to ¥1,203,506 million, up ¥96,652 million (+8.7%) year on year, while operating profit rose to ¥127,136 million, up ¥16,257 million (+14.7%). Business profit, which the company defines as operating profit plus equity-method gains/losses related to overseas business investments, etc., was ¥128,580 million (+¥16,456 million, +14.7%). Ordinary profit was ¥124,548 million (+12.0%) and profit attributable to owners of parent was ¥78,538 million (+16.5%). Non-operating expenses increased by ¥6,252 million, with interest expenses up ¥3,705 million; extraordinary income included a gain on sale of investment securities of ¥7,712 million, and extraordinary losses included a provision for loss on removal of property and equipment of ¥6,153 million. The Group comprised 111 consolidated subsidiaries and 15 equity-method affiliates, a total of 126 companies (up 2 companies).

Item (¥ million)	FY2026 Results	FY2025 Results	Change
Operating revenue	1,203,506	1,106,854	+96,652 (+8.7%)
Operating profit	127,136	110,879	+16,257 (+14.7%)
[Business profit]	[128,580]	[112,124]	[+16,456] [+14.7%]
Non-operating income	23,021	19,719	+3,302
Non-operating expenses	25,609	19,356	+6,252
Ordinary profit	124,548	111,242	+13,306 (+12.0%)
Extraordinary income	12,362	5,953	+6,409
Extraordinary losses	21,992	14,399	+7,592
Profit attributable to owners of parent	78,538	67,386	+11,152 (+16.5%)
Depreciation and amortization	68,779	64,475	+4,303
Financial balance (1) – (2)	-13,048	-9,876	-3,171

Segment Results

All seven reported segments grew revenue year on year. Real Estate was the largest profit contributor, with operating revenue of ¥406,705 million (+¥38,916 million) and operating profit of ¥67,113 million (business profit ¥68,556 million, +¥9,682 million). Urban Transportation revenue rose ¥9,116 million to ¥214,293 million, but operating profit was almost flat at ¥35,298 million (+¥162 million). International Transportation returned to an operating profit of ¥2,049 million from a loss of ¥1,284 million a year earlier. The company notes that, effective from FY2026, the revenue and expenses of certain subsidiaries engaged in the Retailing business within the Urban Transportation segment are now presented under the Other segment, and prior-year figures have been reclassified accordingly.

Segment (¥ million)	Operating revenue FY2026	Operating revenue FY2025	Operating profit [Business profit] FY2026	Operating profit [Business profit] FY2025
Urban Transportation	214,293	205,177	35,298	35,135
Real Estate	406,705	367,788	67,113 [68,556]	57,629 [58,873]
Entertainment	91,171	82,542	13,091	11,406
Information and Communication Technology	71,968	70,088	7,841	6,879
Travel	296,546	261,104	5,423	5,298
International Transportation	106,472	104,717	2,049	-1,284
Other	73,564	69,647	4,293	3,660
Adjustment	-57,216	-54,212	-7,974	-7,844
Total	1,203,506	1,106,854	127,136 [128,580]	110,879 [112,124]

In Real Estate, the company reports that revenue increased in the Real estate leasing and others business as a result of steady performance across properties and the sale of a short-term recovery-based logistics facility, while profit decreased due to increases in expenses in association with the opening of the GRAND GREEN OSAKA South Building; revenue and profit increased due to the sale of high-priced condominiums in the Housing business and the contribution from the results of an Australian subsidiary for the full year in the Overseas real estate business. By type of business, Real estate leasing and others recorded operating revenue of ¥196.8 billion and operating profit of ¥43.8 billion, Housing ¥167.3 billion and ¥27.7 billion, Overseas real estate ¥16.6 billion and ¥7.9 billion (business profit ¥9.3 billion), and Hotel ¥67.7 billion and ¥3.7 billion. Hotel occupancy for FY2026 totalled 83.5% (-3.6P from the previous year) with an average daily rate of ¥24,038 (+¥3,366 from the previous year).

Urban Transportation and Railway Performance

The company reports that in the Railway business revenue increased as ridership increased, driven by the Expo 2025 Osaka, Kansai, Japan and inbound demand, but profit decreased due to increases in expenses, among other factors, including depreciation and amortization associated with capital investments such as the installation of platform screen doors. In the Automobile business, revenue and profit increased due to the operation of shuttle buses associated with the Expo 2025 Osaka, Kansai, Japan as well as fare revisions on some routes. Within the segment, Railway recorded operating revenue of ¥160.3 billion and operating profit of ¥37.3 billion, Automobile ¥48.1 billion and ¥4.0 billion, Retailing ¥7.2 billion and ¥1.3 billion, and Others ¥10.4 billion and ¥1.0 billion (not including head office expenses / adjustments).

Railway operator	Item	FY2026 Results	FY2025 Results	Change
Hankyu Corporation	Fare revenues, total (¥ million)	99,231	95,278	+3,952 (+4.1%)
Hankyu Corporation	Commuter pass fare revenues (¥ million)	33,754	33,013	+740 (+2.2%)
Hankyu Corporation	Passenger volumes, total (Thousands)	628,643	608,987	+19,656 (+3.2%)
Hanshin Electric Railway	Fare revenues, total (¥ million)	37,864	35,515	+2,349 (+6.6%)
Hanshin Electric Railway	Commuter pass fare revenues (¥ million)	12,919	12,449	+469 (+3.8%)
Hanshin Electric Railway	Passenger volumes, total (Thousands)	254,326	242,547	+11,779 (+4.9%)

Entertainment, ICT, Travel and International Transportation

In Entertainment, revenue and profit increased following strong performance in the Sports business as a result of events such as the Hanshin Tigers’ league championship win, while revenue and profit decreased in the Stage business following a decline in the number of performances at the Umeda Arts Theater and a decline in the sales of Takarazuka Revue-related merchandise, despite an increase in the number of Takarazuka Revue performances. Sports recorded operating revenue of ¥57.1 billion against ¥48.2 billion and operating profit of ¥12.4 billion against ¥10.1 billion, while Stage recorded ¥34.0 billion against ¥34.2 billion and ¥2.7 billion against ¥3.2 billion. Takarazuka Revue audience numbers totalled 2,854 thousand people in FY2026, and Hanshin Tigers home game admissions were 2,962 thousand people in the 2025 season, with the team ranked 1st. In Information and Communication Technology, revenue and profit increased due to an increase in orders for e-commerce and other Internet-related business and transportation terminal operation systems in the Information services business and gains in Internet service subscribers in the Broadcast and communications business. Travel revenue rose 13.6% to ¥296,546 million with operating profit of ¥5,423 million, driven by a rise in long-distance tour bookings in overseas travel, steady performance in domestic travel, and the receipt of transportation support service contracts related to the Expo 2025 Osaka, Kansai, Japan. International Transportation revenue and profit increased, driven by a recovery in air freight across Japan, China, and ASEAN regions.

FY2027 Forecast

For Fiscal 2027 (Ending March 2027), the company forecasts operating revenue of ¥1,265.0 billion (+¥61.5 billion, +5.1%) and operating profit of ¥121.7 billion (-¥5.4 billion, -4.3%), with business profit of ¥124.0 billion (-¥4.6 billion, -3.6%). Revenue is expected to increase due to significant growth in the Real Estate segment; profit is expected to decrease due to the impact of the situation in the Middle East together with the non-recurrence of special demand related to the Expo 2025 Osaka, Kansai, Japan and professional baseball in the previous period. Profit attributable to owners of parent is nevertheless expected to increase to ¥79.0 billion (+0.6%) as a result of the reversal of extraordinary losses from the previous period and the recognition of gains from asset sales. By segment, Real Estate revenue is forecast at ¥475.7 billion (+¥69.0 billion) with operating profit of ¥73.3 billion (business profit ¥75.6 billion), while Urban Transportation revenue is forecast at ¥210.8 billion (-¥3.5 billion) with operating profit of ¥26.9 billion (-¥8.4 billion). The company notes that the Retailing business in the Urban Transportation segment has been integrated into the Railway business from FY2027 due to a reduction in revenue and profit as a result of business restructuring.

Item (¥ billion)	FY2027 Forecasts	FY2026 Results	Change
Operating revenue	1,265.0	1,203.5	+61.5 (+5.1%)
Operating profit	121.7	127.1	-5.4 (-4.3%)
[Business profit]	[124.0]	[128.6]	[-4.6] [-3.6%]
Ordinary profit	114.0	124.5	-10.5 (-8.5%)
Profit attributable to owners of parent	79.0	78.5	+0.5 (+0.6%)
Capital Expenditures	151.5	93.7	+57.8
Depreciation and amortization	74.1	68.8	+5.3
Financial balance (A) – (B)	-20.0	-13.0	-7.0

Performance indicators disclosed with the forecast show EBITDA of ¥199.0 billion for FY2027 against ¥200.0 billion in FY2026, ROE of 7.3% in both years, net interest-bearing debt of ¥1,580.0 billion against ¥1,362.3 billion, a net interest-bearing debt/EBITDA ratio of 7.9 against 6.8, and a D/E ratio of 1.5 against 1.3.

Shareholder Returns

The company revised its shareholder return policy from FY2026. Under the new policy it will achieve a total cumulative payout ratio of more than 50% over the six-year period from the fiscal year ending March 2026 to the fiscal year ending March 2031, leading to a stable dividend with a minimum annual dividend of JPY 100 per share, and flexible acquisition of its treasury stock up to the end of the fiscal year ending March 2031 considering the cash flow situation, stock price trends, and other factors. Total returns to shareholders for the six-year period from FY2026 to FY2031 shall be ¥250 billion or more, of which at least ¥100 billion in treasury stock will be acquired by the end of FY2031. The acquisition of treasury stock announced at this time is set at ¥30 billion. The FY2026 annual dividend per share is ¥100 (interim dividend of ¥50 / year-end dividend of ¥50), subject to approval of the proposal concerning the appropriation of surplus at the Ordinary General Meeting of Shareholders on June 18, 2026, and ¥100 per share is scheduled for FY2027.

Item	FY2025	FY2026	FY2027 (scheduled)
Annual dividend per share (¥)	60	100	100
Total dividend (¥ billion)	14.4	23.9	—
Amount of treasury stock acquisition (¥ billion)	7.1	5.8	—

Long-Term Management Plan and Topics

The company states that it has made a promising start toward achieving its Long-Term Management Plan, with FY2026 results exceeding its initial forecast for business profit of ¥118 billion, and that it has secured a clear pathway to its FY2031 business profit target of ¥160 billion through the expansion of the condominium business and the short-term return business in the Real Estate segment, among other initiatives. Financial KPIs envisioned for FY2031 are business profit of approximately ¥160.0 billion, EBITDA of approximately ¥260.0 billion, a D/E ratio of around 1.3x, a net interest-bearing debt/EBITDA ratio at the 6x level, and ROE of 8% or more, which the company aims to reach at an early stage. Excluding special factors of ¥7.8 billion, FY2026 business profit was ¥120.8 billion.

Key initiatives described in the materials include the Shibata 1 Project in the Osaka-Umeda area, which involves replacing Hotel new Hankyu Osaka and Hankyu Terminal Building and redeveloping the whole of Hankyu Sanbangai; demolition work on Hotel new Hankyu Osaka commenced in December 2025 and renovation of the third-floor concourse and platforms at Hankyu Osaka-umeda Station began in January 2026. The company also commenced a review in May 2026 regarding the establishment of an open-end private real estate fund projected to exceed approximately ¥200 billion in assets within five years of its establishment, aims to implement fare revisions on both Hankyu and Hanshin lines by FY2031 at the latest, established a Tourism Division in April 2026, and plans to strategically utilize M&A in the Information Services business. Regarding governance, the number of Independent Outside Directors will be increased by one so that they constitute half of the Board of Directors (7/14, 50.0%), conditional on approval at the General Meeting of Shareholders to be held on June 18, 2026.

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.