NYK Line (9101): FY2025 Results Summary — Automotive and Energy Profits Cushion Tariff and Middle East Impact, Dividend Raised to ¥230

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

Nippon Yusen Kabushiki Kaisha (NYK Line) reported FY2025 (April 2025-March 2026) recurring profit of JPY211.1 billion, down JPY279.7 billion year on year, and profit attributable to owners of parent of JPY211.7 billion, down JPY265.9 billion, as tariff policy impacts and heightened tensions in the Middle East weighed on the Liner Trade and Automotive businesses. Revenues declined to JPY2,423.6 billion (down JPY165.0 billion), partly reflecting the deconsolidation of Nippon Cargo Airlines (NCA) following its share exchange with ANA Holdings. In line with the company’s targeted 40% payout ratio, the year-end dividend was raised by JPY5 per share from the previous forecast, lifting the full-year dividend to JPY230 per share (including a JPY25 commemorative dividend marking NYK’s 140th anniversary). For FY2026, NYK forecasts recurring profit of JPY185.0 billion and profit attributable to owners of parent of JPY195.0 billion, assuming continued tensions in the Middle East through the first quarter.

Consolidated Results (Full-Year Actual)

Recurring profit fell from JPY490.8 billion in FY2024 to JPY211.1 billion in FY2025, with Q4 recurring profit of JPY46.0 billion versus the previous forecast of JPY30.0 billion (up JPY16.0 billion). Operating profit for the year was JPY138.6 billion, down JPY72.2 billion year on year. Full-year profit attributable to owners of parent was JPY211.7 billion, down JPY265.9 billion, with Q4 profit of JPY64.7 billion versus a previous forecast of JPY63.1 billion. The average exchange rate for FY2025 was JPY150.23/US$ (versus JPY152.73/US$ in FY2024), and the average bunker price was $539.11/MT (versus $618.78/MT in FY2024).

Item	FY2025	FY2024	Change
Revenues (Billion yen)	2,423.6	2,588.7	-165.0
Operating Profit (Billion yen)	138.6	210.8	-72.2
Recurring Profit (Billion yen)	211.1	490.8	-279.7
Profit Attributable to Owners of Parent (Billion yen)	211.7	477.7	-265.9
Annual Dividend per Share (¥)	230	325	–
EPS (¥)	504	1,070	–

Segment Results

Liner Trade recurring profit fell to JPY49.7 billion (down JPY224.5 billion) as increased shipping capacity from new vessel deliveries met a volatile freight market amid tariff policy impacts and Middle East tensions. Air Cargo Transportation recurring profit fell to JPY2.1 billion (down JPY18.9 billion) following the deconsolidation of Nippon Cargo Airlines (NCA) after its share exchange with ANA Holdings, effective August 1, 2025. Logistics recurring profit fell to JPY10.2 billion (down JPY11.0 billion): ocean freight forwarding profitability declined on market volatility and contract logistics profit fell on lower handling volumes with major customers amid tariff-related economic uncertainty, while air freight forwarding profit rose on lower purchasing prices and spot cargo. Automotive recurring profit fell to JPY97.9 billion (down JPY15.4 billion) as transported unit volumes were broadly flat but yen appreciation and inflation-driven cost increases, including cargo handling costs, weighed on profit. Dry Bulk recurring profit fell to JPY9.5 billion (down JPY8.5 billion) despite improved market conditions for each vessel type, reflecting yen appreciation and lower profitability in small-sized and box-shaped bulk carriers. Energy was the only segment to post a year-on-year profit increase, at JPY54.4 billion (up JPY8.2 billion), driven by improved VLCC and VLGC market conditions linked to the effective closure of the Strait of Hormuz and Middle East-related trade pattern changes, steady LNG results under medium- to long-term contracts, and one-off profit from the start of operations of a new FPSO.

Segment	Metric	FY2025	FY2024
Liner Trade	Revenue (Billion yen)	180.9	180.4
Liner Trade	Recurring Profit (Billion yen)	49.7	274.3
Air Cargo Transportation	Revenue (Billion yen)	41.1	185.7
Air Cargo Transportation	Recurring Profit (Billion yen)	2.1	21.0
Logistics	Revenue (Billion yen)	804.7	812.1
Logistics	Recurring Profit (Billion yen)	10.2	21.2
Automotive	Revenue (Billion yen)	526.8	532.3
Automotive	Recurring Profit (Billion yen)	97.9	113.3
Dry Bulk	Revenue (Billion yen)	551.0	607.2
Dry Bulk	Recurring Profit (Billion yen)	9.5	18.1
Energy	Revenue (Billion yen)	236.9	178.5
Energy	Recurring Profit (Billion yen)	54.4	46.1
Others	Revenue (Billion yen)	181.3	204.6
Others	Recurring Profit (Billion yen)	0.0	6.9
Elimination/Corporate	Revenue (Billion yen)	-99.4	-112.4
Elimination/Corporate	Recurring Profit (Billion yen)	-12.9	-10.4
Consolidated	Revenue (Billion yen)	2,423.6	2,588.7
Consolidated	Recurring Profit (Billion yen)	211.1	490.8

Ocean Network Express (ONE) – Container Shipping Joint Venture

Ocean Network Express (ONE), NYK’s equity-method container shipping joint venture, reported FY2025 (April 2025-March 2026) revenue of US$16,620 million and profit of US$338 million, down from US$19,233 million and US$4,244 million respectively in FY2024, as overall cargo demand remained subdued and freight rates softened, although Q4 profit of US$55 million showed some recovery as freight rates improved. Full-year lifting volume was 12,927 thousand TEU, up 177 thousand TEU (+1%) year on year. For FY2026, ONE forecasts revenue of US$18,500 million and profit of US$300 million, citing a volatile geopolitical landscape, particularly in the Middle East, with operating conditions assumed to stabilize to pre-conflict levels by summer.

Item	FY2025 (Actual)	FY2024 (Actual)
Revenue (Million US$)	16,620	19,233
EBITDA (Million US$)	2,752	5,966
EBIT (Million US$)	310	3,804
Profit/Loss (Million US$)	338	4,244
Lifting (Thousand TEU)	12,927	12,750

FY2026 Forecast

For FY2026 (April 2026-March 2027), NYK forecasts revenues of JPY2,605.0 billion (up JPY181.3 billion), recurring profit of JPY185.0 billion (down JPY26.1 billion) and profit attributable to owners of parent of JPY195.0 billion (down JPY16.7 billion). The forecast assumes that heightened tensions in the Middle East and closure of the Strait of Hormuz persist through Q1 FY2026, and that rerouting via the Cape of Good Hope to avoid the Suez Canal continues throughout FY2026. Liner Trade recurring profit is forecast at JPY49.0 billion (down JPY0.7 billion) on the assumption that Cape of Good Hope rerouting continues and Middle East-related costs increase. Automotive recurring profit is forecast at JPY84.0 billion (down JPY13.9 billion) on higher Middle East-related costs and a year-on-year decline in transported units. Logistics recurring profit is forecast at JPY0.0 billion (down JPY10.2 billion), reflecting goodwill amortization and other expenses associated with the FY2025 acquisition of Walden Group’s healthcare logistics business in Europe. Dry Bulk recurring profit is forecast to rise to JPY14.0 billion (up JPY4.5 billion) on resilient market conditions across vessel types, while Energy recurring profit is forecast to fall to JPY48.0 billion (down JPY6.4 billion) as the FY2025 one-off FPSO start-up profit is not repeated.

Item	Forecast	FY2025 (Actual)
Revenues (Billion yen)	2,605.0	2,423.6
Operating Profit (Billion yen)	145.0	138.6
Recurring Profit (Billion yen)	185.0	211.1
Profit Attributable to Owners of Parent (Billion yen)	195.0	211.7
Interim Dividend per Share (¥)	100	115
Year-End Dividend per Share (¥)	100	115
Annual Dividend per Share (¥)	200	230

Shareholder Returns

NYK’s FY2025 dividend was set in line with its targeted consolidated payout ratio of 40%, comprising an interim dividend of JPY115 per share (paid) and a year-end dividend of JPY115 per share (planned, up JPY5 from the previous forecast, comprising an ordinary dividend of JPY90 and a commemorative dividend of JPY25 marking the company’s 140th anniversary), for a full-year dividend of JPY230 per share. Total payout ratio for FY2025 was 116%. A share repurchase totaling JPY150.0 billion was completed on April 30, 2026, with all repurchased shares to be retired by May 29, 2026. For FY2026, the shareholder return policy sets a targeted consolidated payout ratio of 40% and a minimum dividend of JPY200 per share; the company forecasts an interim dividend of JPY100 and a year-end dividend of JPY100, for a full-year dividend of JPY200 per share, with additional shareholder returns to be considered flexibly based on investment opportunities and the business environment. Since FY2023, cumulative share repurchases have totaled JPY480.0 billion, contributing to an estimated approximately 25% increase in EPS.

Item	FY2025 (Actual)	FY2026 (Forecast)
Interim Dividend per Share (¥)	115	100
Year-End Dividend per Share (¥)	115 (incl. ¥25 commemorative)	100
Annual Dividend per Share (¥)	230	200
Dividend Payout Ratio Policy	40%	40%
Minimum Dividend per Share (¥)	–	200
Total Payout Ratio	116%	43%

Medium-Term Management Plan Progress

Over the four-year period of the current Medium-term Management Plan (FY2023-FY2026), ROIC and ROE are expected to average 8.1% and 9.9% respectively, meeting the plan’s initial targets of ROIC over 6.5% and ROE 8-10%. Total investment over the plan period increased from an initial JPY1.2 trillion to approximately JPY1.6 trillion (JPY1.58 trillion, 110% of the initial plan), reflecting additional growth opportunities including expansion of the LNG carrier fleet, M&A by Yusen Logistics (including the acquisition of Walden Group’s Healthcare Logistics Business), and M&A in the Auto-Logistics Business. Management-directed allocation, boosted by an JPY830.0 billion upside in operating cash flow over the plan period, has been allocated to additional share repurchase (+JPY280.0 billion), additional dividends (+JPY160.0 billion) and additional investment (+JPY420.0 billion), with JPY110.0 billion remaining unallocated under the latest forecast. Regarding the Walden Group healthcare logistics acquisition, the next approximately 18 months are positioned as a focused post-merger integration (PMI) period aimed at delivering an early earnings contribution, with EBITDA targeted to grow from approximately €80 million in FY2026 to approximately €300 million at future targets (including approximately €220 million from synergy realization).

Item	FY2024 (Result)	FY2025 (Result)	FY2026 (Forecast)	FY2030 (Forecast)
Recurring Profit (Billion yen)	490.8	211.1	185.0	440.0
Shareholders’ Equity Ratio	68%	59%	54%	58%
ROIC	13.2%	6.4%	4.8%	7.6%
ROE	17.1%	7.1%	6.4%	10.3%
DER	0.25	0.39	0.57	–

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.