JR East (9020): FY2025 Results Summary — Record Operating Revenues on Fare Revision and TAKANAWA GATEWAY CITY Opening

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East Japan Railway Company (JR East) reported increased revenues and income at all levels in FY2025 (fiscal year ended March 31, 2026), with operating revenues reaching a record high since the Company’s inception. Operating revenues rose 6.8% year-on-year to ¥3,084.6 billion, the fifth consecutive year of growth, driven mainly by increased railway usage, higher EKINAKA (in-station) store sales, and the opening of TAKANAWA GATEWAY CITY. Operating income increased 9.9% to ¥414.2 billion, ordinary income rose 9.4% to ¥351.6 billion, and profit attributable to owners of parent grew 10.5% to ¥247.8 billion. All four business segments — Transportation, Retail & Services, Real Estate & Hotels, and Others — achieved increases in both revenue and income.

Consolidated Results (Full-Year Actual)

FY2025 results exceeded the forecast announced in October 2025 (operating revenues of ¥3,058.0 billion) by ¥26.6 billion, and operating income beat the forecast of ¥405.0 billion by ¥9.2 billion. EBITDA rose 7.7% year-on-year to ¥842.9 billion. The FY2025 year-end dividend per share was 39 yen (an increase of 4 yen from the previous year, and 4 yen above the most recently disclosed forecast), bringing the total annual dividend for FY2025 to 74 yen per share, for a dividend payout ratio of 33.7%.

Item	FY2025	FY2024	Change
Operating revenues	3,084.6	2,887.5	+197.1 (106.8%)
Operating income	414.2	376.7	+37.4 (109.9%)
Ordinary income	351.6	321.5	+30.0 (109.4%)
Profit attributable to owners of parent	247.8	224.2	+23.5 (110.5%)
EBITDA	842.9	782.9	+60.0 (107.7%)

Segment Results

Transportation achieved increased revenue and income mainly due to an increase in passenger revenues, with operating revenue up 5.1% to ¥2,045.8 billion and operating income up 10.4% to ¥194.4 billion. Retail & Services revenue grew 5.7% to ¥416.1 billion and operating income rose 12.5% to ¥68.0 billion, mainly due to an increase in the sales of EKINAKA stores. Real Estate & Hotels revenue increased 15.2% to ¥513.2 billion (including real estate sales revenue of ¥73.0 billion, up 60.5%) and operating income rose 6.6% to ¥128.2 billion (including ¥50.3 billion from real estate sales, up 59.4%), due mainly to an increase in real estate sales, in addition to increases in office leasing revenue and sales of shopping centers and hotels. Others revenue rose 6.8% to ¥109.4 billion and operating income increased 32.0% to ¥30.2 billion, mainly due to an increase in sales related to the IC card business.

Segment	Metric	FY2025	FY2024
Transportation	Operating revenue	2,045.8	1,945.7
Transportation	Operating income	194.4	176.0
Retail & Services	Operating revenue	416.1	393.7
Retail & Services	Operating income	68.0	60.5
Real Estate & Hotels	Operating revenue	513.2	445.4
Real Estate & Hotels	Operating income	128.2	120.3
Others	Operating revenue	109.4	102.5
Others	Operating income	30.2	22.9
Adjustment	Operating income	-6.7	-3.1
Total	Operating revenue	3,084.6	2,887.5
Total	Operating income	414.2	376.7

FY2026 Forecast

For FY2026 (fiscal year ending March 31, 2027), JR East forecasts consolidated operating revenues of ¥3,295.0 billion (+6.8% YoY), exceeding the FY2025 record. Operating income is forecast at ¥429.0 billion (+3.6%), ordinary income at ¥353.0 billion (+0.4%), profit attributable to owners of parent at ¥255.0 billion (+2.9%), and EBITDA at ¥887.0 billion (+5.2%). By segment, Transportation is forecast to grow to ¥2,146.0 billion in operating revenue (+4.9%) and ¥207.0 billion in operating income (+6.5%), reflecting higher railway usage driven by enhanced safety and service levels in addition to the fare revision, while factoring in higher personnel, maintenance, and energy expenses. Retail & Services is forecast at ¥427.0 billion revenue (+2.6%) and ¥70.0 billion operating income (+2.8%), driven by increased retail sales from greater EKINAKA store usage and higher transportation advertising revenue. Real Estate & Hotels is forecast at ¥605.0 billion revenue (+17.9%) and ¥131.0 billion operating income (+2.1%), mainly due to increased real estate lease revenue associated with the grand opening of TAKANAWA GATEWAY CITY and the opening of OIMACHI TRACKS. Others is forecast at ¥117.0 billion revenue (+6.9%), but operating income is expected to decrease 17.4% to ¥25.0 billion due to upfront costs related to the launch of the new code payment service “teppay,” although sales from ticket vending machine and gate equipment construction are expected to increase. Major planned capital investments for FY2026 include the Haneda Airport Access Line (tentative name), accelerated installation of automatic platform gates, countermeasures against large-scale earthquakes, and station-area development in Shinjuku, Shinagawa, and other locations.

Item	FY2026 Forecast	FY2025 (Actual)
Operating revenues	3,295.0	3,084.6
Operating income	429.0	414.2
Ordinary income	353.0	351.6
Profit attributable to owners of parent	255.0	247.8
EBITDA	887.0	842.9
Dividend per share (annual)	84 yen (Interim 42, Year-end 42)	74 yen (Interim 35, Year-end 39)

Segment	Metric	FY2026 Forecast	FY2025 (Actual)
Transportation	Operating revenue	2,146.0	2,045.8
Transportation	Operating income	207.0	194.4
Retail & Services	Operating revenue	427.0	416.1
Retail & Services	Operating income	70.0	68.0
Real Estate & Hotels	Operating revenue	605.0	513.2
Real Estate & Hotels	Operating income	131.0	128.2
Others	Operating revenue	117.0	109.4
Others	Operating income	25.0	30.2
Total	Operating revenue	3,295.0	3,084.6
Total	Operating income	429.0	414.2

Shareholder Returns

JR East’s shareholder return policy is to gradually raise the dividend payout ratio to 40% by FY2028.3 (fiscal year ending March 2028), as growth investments are expected to be reduced to a moderate level. The FY2025 year-end dividend was 39 yen per share (up 4 yen year-on-year and 4 yen above the previously disclosed forecast), bringing the FY2025 annual dividend to 74 yen per share (payout ratio 33.7%). For FY2026, JR East forecasts an annual dividend of 84 yen per share (interim 42 yen, year-end 42 yen), for a payout ratio of 37.2%. The policy also includes flexible share buybacks.

Medium-Term Plan / Topics

JR East updated the numerical targets of its long-term vision “To the Next Stage” 2034 to reflect changes in the business environment, including strong railway usage and rising inflation. It now targets, by FY2032.3 (fiscal year ending March 2032), operating revenues of approximately ¥4.3 trillion (previous target: over ¥4.0 trillion), EBITDA of approximately ¥1.2 trillion, operating income of approximately ¥750.0 billion (approximately +¥50.0 billion versus the previous target), and ROE of 10% or more. Interim targets for FY2028.3 (fiscal year ending March 2028) were also updated, to operating revenues of ¥3,518.0 billion, EBITDA of ¥958.0 billion, and operating income of ¥488.0 billion. Under the medium-to-long-term growth strategy “PRIDE & INTEGRITY” for the Mobility business, the FY2032.3 target for the increase in mobility operating revenue (versus FY2025.3) was revised upward to more than ¥300.0 billion, up from the previous target of more than ¥200.0 billion, reflecting factors including the March 2026 fare revision (approximately +¥82.0 billion) and inbound transportation revenue growth (approximately +¥45.0 billion). Under “Beyond the Border” for Lifestyle Solutions (Retail & Services + Real Estate & Hotels + IT & Suica), JR East now aims to double operating revenue (from ¥847.0 billion in FY2024.3) and operating income (from ¥170.3 billion in FY2024.3) two years ahead of the original schedule, with an additional increase of ¥150.0 billion in operating revenue and ¥100.0 billion in operating income by FY2034.3. The Company plans to invest ¥1.3 trillion in safety measures from FY2025.3 to FY2029.3 under the Group Safety Plan, and in March 2026 compiled improvement measures to strengthen Group governance in light of issues raised in an expert committee report following a series of transportation incidents.

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.