Chubu Electric Power (9502): FY2025 Results Summary — Decreased Revenue, Increased Profit for the First Time in 2 Years

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

Chubu Electric Power Co., Inc. (TSE: 9502) reported consolidated financial results for the fiscal year ended March 31, 2026 (FY2025). Operating revenue decreased by 123.1 billion yen year on year to 3,546.0 billion yen (-3.4%), mainly due to a decrease in the fuel cost adjustment charge (-115.6 billion yen, including government support for electricity bills). Ordinary profit increased by 14.6 billion yen to 291.0 billion yen (+5.3%), and profit attributable to owners of parent increased by 25.7 billion yen to 227.7 billion yen (+12.7%). The company recorded decreased revenue and increased profit for the first time in two years, since FY2023.

Consolidated Results (Full-Year Actual)

Following the confirmation of inappropriate matters in the new regulatory requirements compliance review of the Hamaoka Nuclear Power Station, the company decided to terminate outsourcing contracts related to review-related work, recording expenses corresponding to work already performed of -8.8 billion yen. This was offset by an increase in profit from factors including improved coal procurement competitiveness in JERA’s domestic thermal power business (22.3 billion yen). As a result, ordinary profit increased by 14.6 billion yen (+5.3%) to 291.0 billion yen; ordinary profit excluding time lag was approximately 284.0 billion yen, up approximately 19.6 billion yen (+7.4%) year on year. As of the end of FY2025, the company had 78 consolidated subsidiaries (+3 year on year) and 97 affiliates accounted for under the equity method (+10 year on year). (Amounts in billion yen; change figures in billion yen and %, as stated in the presentation materials.)

Item	FY2025 (A)	FY2024 (B)	Change (A-B)	Change (%)
Operating revenue	3,546.0	3,669.2	(123.1)	(3.4)
Operating profit	230.0	242.0	(12.0)	(5.0)
Ordinary profit	291.0	276.4	14.6	5.3
Ordinary profit excluding time lag	approx. 284.0	approx. 264.4	approx. 19.6	7.4
Extraordinary losses	16.0	6.4	9.6	150.9
Profit attributable to owners of parent	227.7	202.0	25.7	12.7

Segment Results

Miraiz’s ordinary profit increased by 20.9 billion yen to 137.9 billion yen, mainly due to the time-lag impact turning from a loss to a gain and an expansion of cost-reduction effects from restructuring the power procurement portfolio; ordinary profit excluding time lag was approximately 135.9 billion yen (+approx. 10.9 billion yen). Miraiz’s total electrical energy sold to end users was 109.0 TWh (+1.1 TWh, +1.0%), comprising 30.3 TWh for low voltage (-1.0 TWh, -3.2%) and 78.7 TWh for high voltage/extra-high voltage (+2.1 TWh, +2.8%); electrical energy sold to other companies was 21.0 TWh (-0.5 TWh, -2.3%), and electrical energy sold including group companies was 120.0 TWh (+2.7 TWh, +2.3%). Power Grid’s ordinary profit remained at the same level as FY2024 at 47.5 billion yen, as a decrease in supply and demand adjustment costs offset a decrease in transmission revenue from lower energy demand in the Chubu region and an increase in equipment-related expenses; total energy demand in the Chubu region was 123.9 TWh (-0.6 TWh, -0.5%). JERA-related ordinary profit (equity-method, before elimination) increased by 26.8 billion yen to 94.1 billion yen, mainly due to improved coal procurement competitiveness in JERA’s domestic thermal power business; ordinary profit excluding time lag was approximately 89.1 billion yen (+approx. 41.8 billion yen). The CIF crude oil price was $71.4/barrel (down $11.0 from $82.4) and the FX rate was 150.8 yen/$ (down 1.8 yen from 152.6 yen/$); JERA’s profit (as disclosed in the JERA consolidated profit reference) was 193.5 billion yen (+9.6 billion yen), or approximately 183.6 billion yen excluding time lag (approx. -39.8 billion yen year on year excluding time lag). The Other segment’s ordinary profit increased by 45.5 billion yen to 127.0 billion yen, which includes a repost of 28.3 billion yen from the newly established Real Estate Business Division (established April 1, 2025). Chubu Electric Power’s total electrical power generation was 9.2 TWh (-0.5 TWh, -5.4%), comprising hydro of 8.8 TWh (-0.5 TWh, -5.4%; flow rate 90.6%, down from 104.9%) and renewable energy of 0.4 TWh (-0.0 TWh, -4.2%); there was no nuclear power generation in either fiscal year.

Segment	Metric	FY2025 (A)	FY2024 (B)	Change (A-B)
Miraiz	Operating revenue (Billion yen)	2,859.2	2,962.2	(102.9)
Power Grid	Operating revenue (Billion yen)	928.6	963.2	(34.5)
Other	Operating revenue (Billion yen)	751.3	785.9	(34.6)
Adjustment	Operating revenue (Billion yen)	(993.2)	(1,042.1)	48.9
Total	Operating revenue (Billion yen)	3,546.0	3,669.2	(123.1)
Miraiz	Ordinary profit (Billion yen)	137.9	117.0	20.9
Power Grid	Ordinary profit (Billion yen)	47.5	47.5	0.0
JERA	Ordinary profit (Billion yen)	94.1	67.3	26.8
Other	Ordinary profit (Billion yen)	127.0	81.4	45.5
(Repost) Real Estate Business	Ordinary profit (Billion yen)	28.3	–	–
Adjustment	Ordinary profit (Billion yen)	(115.7)	(37.1)	(78.6)
Total	Ordinary profit (Billion yen)	291.0	276.4	14.6

FY2026 Forecast

Due to the impact of the situation in the Middle East and other factors, uncertainties surrounding fuel prices and wholesale electricity market prices, which form the basis of the company’s business forecasts, have been increasing. As a result, at this point, the company has determined it is difficult to reasonably forecast the level of income and expenditure for the fiscal year ending March 31, 2027, and has set its FY2026 business forecast as “undetermined.” The company will promptly make an announcement once it becomes possible to establish reasonable assumptions. Regarding the situation in the Middle East, the company stated that, at this point, the impact on electricity demand in the Chubu area is limited, and the impact on LNG procurement at JERA is also limited; however, if tensions in the Middle East worsen and become prolonged, there could be impacts on electricity demand, supply and demand conditions, and resource prices, including restrictions on the navigation of fuel vessels.

Shareholder Returns

The Chubu Electric Power Group’s target consolidated payout ratio is over 30%; the company will continue to invest in plant and equipment for a safe and stable electricity supply and in growth sectors, while pursuing stable dividends and considering profit growth. For FY2025, the year-end dividend per share is expected to be 35 yen, the same as the interim dividend, for an annual dividend of 70 yen. Although the FY2026 earnings forecast is undetermined, the FY2026 dividend forecast is expected to be 70 yen per share annually (35 yen interim and 35 yen year-end), based on the Policy of Return to Shareholders and at the same level as the FY2025 annual dividend.

Item	FY2026 (Forecast)	FY2025	FY2024
Interim dividend per share (yen)	35	35	30
Year-end dividend per share (yen)	35	35	30
Annual dividend per share (yen)	70	70	60
Consolidated payout ratio excluding time lag	–	23.9%	24.1%

Financial Position and Indicators

As of March 31, 2026, consolidated total assets were 7,652.7 billion yen (+527.8 billion yen from March 31, 2025), liabilities were 4,439.8 billion yen (+173.6 billion yen), and net assets were 3,212.8 billion yen (+354.2 billion yen). The shareholders’ equity ratio was 41.0% (+1.9pt from 39.1%), and outstanding interest-bearing debt was 3,233.4 billion yen (+155.5 billion yen), of which 144.5 billion yen reflects the impact of financing and repayment and 11.0 billion yen reflects changes in the scope of consolidation. ROIC was 4.4% (FY2024: 3.8%) against a medium-term management target of 3.2% or more, ROA was 4.3% (FY2024: 4.1%), and ROE was 7.5% (FY2024: 7.0%) against a target of approximately 7%.

Item	FY2025 / Mar. 31, 2026	FY2024 / Mar. 31, 2025	Change
Assets (Billion yen)	7,652.7	7,124.8	527.8
Liabilities (Billion yen)	4,439.8	4,266.2	173.6
Net assets (Billion yen)	3,212.8	2,858.5	354.2
Shareholders’ equity ratio (%)	41.0	39.1	1.9
Outstanding interest-bearing debt (Billion yen)	3,233.4	3,077.8	155.5
ROIC (%)	4.4	3.8	–
ROA (%)	4.3	4.1	–
ROE (%)	7.5	7.0	–

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.