Osaka Gas (9532): FY2025 Results Summary — International Energy Strength Lifts Profit, Dividend Raised to 120 Yen

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Osaka Gas Co., Ltd. (9532) reported FY2025 (April 2025–March 2026, FY26.3) consolidated net sales of 2,030.3 billion yen, down 38.7 billion yen year on year, due mainly to lower gas selling prices under the gas rate adjustment system in Domestic Energy. Ordinary profit rose to 204.5 billion yen (up 14.8 billion yen year on year, including time-lag effect) and profit attributable to owners of the parent rose to 152.7 billion yen (up 18.3 billion yen), as strong performance in International Energy, including Freeport LNG and U.S. upstream operations, more than offset lower earnings in Domestic Energy. ROIC improved to 5.8% (up 0.4pt) and ROE to 8.7% (up 0.5pt). For FY2026 (FY27.3), the company forecasts ordinary profit of 190.0 billion yen (down 14.5 billion yen), an annual dividend of 130 yen per share (up 10 yen), and a share buyback of up to 80.0 billion yen.

Consolidated Results (Full-Year Actual)

Ordinary profit and profit attributable to owners of the parent increased year on year, driven by strong performance in International Energy. Excluding the time-lag effect, ordinary profit was 195.3 billion yen (up 10.0 billion yen) and profit attributable to owners of the parent was 146.1 billion yen (up 14.8 billion yen). EBITDA rose to 333.8 billion yen (up 24.9 billion yen), the shareholders’ equity ratio improved to 57.0% (up 1.5pt), and the debt/equity ratio improved to 0.45 times (down 0.05). The annual dividend was 120 yen per share, up 25 yen year on year.

Item	FY2025	FY2024	Change
Net sales (billion yen)	2,030.3	2,069.0	-38.7
Ordinary profit (billion yen)	204.5	189.6	+14.8
Ordinary profit excluding time-lag effect (billion yen)	195.3	185.3	+10.0
Profit attributable to owners of the parent (billion yen)	152.7	134.4	+18.3
EBITDA (billion yen)	333.8	308.9	+24.9
ROIC	5.8%	5.4%	+0.4pt
ROE	8.7%	8.2%	+0.5pt
Shareholders’ equity ratio	57.0%	55.5%	+1.5pt
Debt/Equity ratio (times)	0.45	0.50	-0.05
Annual dividend (yen/share)	120	95	+25

Segment Results

Domestic Energy segment profit declined to 71.9 billion yen (down 5.6 billion yen), due mainly to higher fixed costs associated with the start-up of the Himeji Power Plant and lower earnings from electricity market transactions (Electricity profit excluding time-lag effect: 26.5 billion yen, down 13.3 billion yen), partly offset by a time-lag gain of 9.1 billion yen (up 4.8 billion yen). International Energy segment profit rose to 88.3 billion yen (up 16.4 billion yen), driven by the USA (80.6 billion yen, up 21.1 billion yen) on higher earnings from Freeport LNG and the upstream business, while Australia declined to 14.5 billion yen (down 3.1 billion yen) on lower upstream earnings. Life & Business Solutions (LBS) segment profit rose to 37.4 billion yen (up 8.6 billion yen), led by real estate development (22.9 billion yen, up 8.7 billion yen) on an increase in property sales.

Segment	Metric	FY2025	FY2024
Domestic Energy	Segment profit (billion yen)	71.9	77.5
Domestic Energy	Time-lag gain/loss (billion yen)	9.1	4.2
Domestic Energy	Electricity, excl. time-lag effect (billion yen)	26.5	39.8
International Energy	Segment profit (billion yen)	88.3	71.9
International Energy	USA (billion yen)	80.6	59.4
International Energy	Australia (billion yen)	14.5	17.6
Life & Business Solutions	Segment profit (billion yen)	37.4	28.7
Life & Business Solutions	Real estate development (billion yen)	22.9	14.2

FY2026 Forecast

For FY2026 (FY27.3), Osaka Gas forecasts net sales of 2,070.0 billion yen (up 39.6 billion yen), ordinary profit of 190.0 billion yen (down 14.5 billion yen), and profit attributable to owners of the parent of 145.0 billion yen (down 7.7 billion yen), unchanged from the plan announced in March 2026. Ordinary profit is expected to decrease mainly due to lower earnings from electricity market transactions in Domestic Energy and higher fixed costs associated with the start-up of the Himeji Power Plant. By segment, Domestic Energy profit is forecast to decline to 55.5 billion yen (down 16.4 billion yen), International Energy to 85.5 billion yen (down 2.8 billion yen), and LBS to increase to 40.5 billion yen (up 3.0 billion yen). The company states there is no revision to the full-year forecast at this time and that timely and appropriate disclosure will continue as needed.

Item	Forecast	FY2025 (Actual)
Net sales (billion yen)	2,070.0	2,030.3
Ordinary profit (billion yen)	190.0	204.5
Ordinary profit excluding time-lag effect (billion yen)	183.0	195.3
Profit attributable to owners of the parent (billion yen)	145.0	152.7
EBITDA (billion yen)	337.0	333.8
ROIC	5.3%	5.8%
ROE	8.0%	8.7%
Shareholders’ equity ratio	54.6%	57.0%
Debt/Equity ratio (times)	0.56	0.45
Annual dividend (yen/share)	130	120

Shareholder Returns

Osaka Gas plans an annual dividend of 130 yen per share for FY2026, up 10 yen year on year, and will implement a share buyback of up to 80.0 billion yen from May 11, 2026 to March 31, 2027, approved as flexible additional shareholder return measures to support medium- to long-term ROE improvement. Going forward, the company will maintain dividends based on a DOE (dividend on equity) target of 3.5% and a progressive dividend policy with no dividend cuts in principle, while prioritizing investments for sustainable growth; flexible share buybacks will also be implemented as appropriate, taking into account financial soundness, with the aim of improving capital efficiency. Cumulative shareholder returns during the Medium-Term Management Plan 2026 period (FY25.3–FY27.3) are expected to total 190.0 billion yen, including 80.0 billion yen in FY27.3.

Item	FY2025	FY2026 Forecast
Annual dividend (yen/share)	120	130
DOE target	3.0% (interim raised to 3.5%)	3.5%
Share buyback (billion yen)	–	Up to 80.0

Medium-Term Plan / Topics

Under Medium-Term Management Plan 2026 (FY25.3–FY27.3), Osaka Gas continues to target ordinary profit of 200.0 billion yen in FY31.3, and ROIC of approximately 6% and ROE of approximately 10% in the early 2030s. The 3-year average ordinary profit excluding time-lag effect (including the FY27.3 forecast) is approximately 188 billion yen, up approximately 27 billion yen (+16%) from the approximately 161 billion yen average under the previous Medium-Term Management Plan (FY22.3–FY24.3), driven by growth across the Domestic Energy, International Energy and LBS segments. The FY27.3 final-year targets of ROIC 5.0% and ROE 8.0% remain unchanged despite continued uncertainty related to the situation in the Middle East; ROE excluding the time-lag effect for FY27.3 is expected to exceed 8.0% on an indicative basis, reflecting current crude oil futures prices and other energy market indicators. The company states it currently expects no significant impact on LNG procurement or the supply of gas and electricity from Middle East instability, citing diversified LNG procurement with no long-term contracts requiring passage through the Strait of Hormuz.

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