Shikoku Electric Power (9507): FY2025 Results Summary — Ordinary Profit Falls to ¥67.8 Billion on a Weaker Supply-Demand Balance

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

Shikoku Electric Power Co., Inc. (YONDEN) held its Financial Results Briefing for FY2025 (April 1, 2025 – March 31, 2026) on May 8, 2026. The company described FY2025 as a year of “Revenue Decrease and Profit Decrease”: revenues came to 761.8 billion yen, a change of (89.5) billion yen, while ordinary profit was 67.8 billion yen, a change of (23.8) billion yen, and profit attributable to owners of parent was 50.8 billion yen, a change of (17.5) billion yen. For FY2026 the company forecasts revenues of 925.0 billion yen, ordinary profit of 40.0 billion yen and net profit attributable to owners of parent of 30.0 billion yen, alongside a higher annual dividend of ¥55 per share.

Consolidated Results (Full-Year Actual)

On the summary table, revenues were 7,618 (100 million yen) against 8,513 in FY2024, a change of (895) or (10.5)%. Operating expenses fell to 6,940 from 7,623, a change of (683) or (9.0)%, but the decline in revenues outpaced the cost reduction, leaving operating profit at 678 versus 890, a change of (212) or (23.8)%. Non-operating profit (loss) was 0 against 25, so ordinary profit was 678 versus 916, a change of (238) or (25.9)%. After income taxes, etc. of 170, profit attributable to owners of parent was 508 versus 683, a change of (175) or (25.6)%, and net profit per share was 247 yen against 332 yen.

Item (100 million yen)	FY2025	FY2024	Change	Growth rate
Revenues	7,618	8,513	(895)	(10.5)%
Operating Expenses	6,940	7,623	(683)	(9.0)%
Operating Profit	678	890	(212)	(23.8)%
Non-Operating Profit (Loss)	0	25	(25)	(98.3)%
Ordinary Profit	678	916	(238)	(25.9)%
Income Taxes, etc.	170	232	(62)	(26.6)%
Profit attributable to owners of parent	508	683	(175)	(25.6)%
Net profit per share	247 yen	332 yen	(85) yen	(25.6)%

Within the breakdown of consolidated results, Electric Power revenues were 6,622 (100 million yen) against 7,563, a change of (941) or (12.4)%, while Businesses Other than Electric Power contributed 996 against 950, a change of 46 or 4.8%. On the cost side, fuel expenses fell to 846 from 1,132 and power purchase costs to 2,152 from 2,666, whereas maintenance expenses rose to 757 from 687, a change of 70 or 10.2%. On the balance sheet, assets stood at 17,343 (100 million yen) as of March 31, 2026 against 16,874 a year earlier, net assets at 4,775 against 4,408, and the shareholders’ equity ratio improved to 27.4% from 26.0%. Cash flows from operating activities were 822 (100 million yen) against 1,298, and cash flows from investing activities were (1,500) against (929), leaving free cash flows of (677) against 368.

Key Operating Data and Electricity Sales

Total electricity supplied was 34,346 million kWh against 35,609 million kWh, a change of (1,263). Retail electricity sales edged up to 22,894 million kWh from 22,720 million kWh (a change of 174), with lighting down (322) and power up 495, while wholesale electricity sales fell to 11,452 million kWh from 12,889 million kWh, a change of (1,437). Demand from the Shikoku area was 25,467 million kWh against 26,214 million kWh. The nuclear capacity factor rose to 81% from 77%, while the flow rate fell to 80% from 99%. Fuel and market indicators eased: the coal customs CIF price was $121/t against $151/t, the LNG customs CIF price $567/t against $614/t, the crude oil customs CIF price $71/b against $82/b, and JEPX spot market prices in the Shikoku area ¥8.9/kWh against ¥10.7/kWh.

Key data	FY2025	FY2024	Change
Total Electricity Supplied (million kWh)	34,346	35,609	(1,263)
Electricity Sales, Retail (million kWh)	22,894	22,720	174
Lighting (million kWh)	7,406	7,728	(322)
Power (million kWh)	15,488	14,993	495
Electricity Sales, Wholesale (million kWh)	11,452	12,889	(1,437)
Demand from Shikoku area (million kWh)	25,467	26,214	(747)
Nuclear Capacity Factor (%)	81	77	4
Flow Rate (%)	80	99	(19)
Coal Customs CIF Price ($/t)	121	151	(30)
LNG Customs CIF Price ($/t)	567	614	(47)
Crude Oil Customs CIF Price ($/b)	71	82	(11)
Exchange Rate (¥/$)	151	153	(2)
JEPX Spot Market Prices in the Shikoku Area (¥/kWh)	8.9	10.7	(1.8)

The company also notes that electricity sales (retail) include subsidies for the electricity business implemented based on the “Comprehensive Economic Measures to Overcome Rising Prices and Realize Economic Revival.”

Factors Behind the Change in Ordinary Profit

The bridge from FY2024 ordinary profit of 916 (100 million yen) to FY2025 ordinary profit of 678 is a change of (238). Electric Power accounted for (240), made up of a deterioration in the supply-demand balance of (217), amortization of actuarial gains and losses related to retirement benefits of +109, and an increase in maintenance expenses, etc. of (132). Businesses Other than Electric Power, etc. added +2. The deterioration in the supply-demand balance is attributed to a decrease in hydro power of (71) and a deterioration in the revenues related to supply and demand adjustment, such as FIT, etc., of (111). One-off style items disclosed for each year were, for FY2024, a time lag profit of the fuel cost adjustment system of +35, amortization of actuarial gains and losses of +64 and temporary fluctuations in profit of electricity transmission & distribution companies of +177; and for FY2025, a time lag profit of +50, amortization of actuarial gains and losses of +173 and temporary fluctuations in profit of electricity transmission & distribution companies of (41).

Segment Results

By segment (before elimination of internal transactions), Electric Power ordinary profit was 434 (100 million yen) against 674, a change of (240). Within it, Power Generation & Sales was 348 against 413, a change of (65), and Transmission & Distribution was 85 against 261, a change of (176). Businesses Other than Electric Power improved to 257 from 246, a change of 11, led by IT/Communications at 112 against 106 and Others at 39 against 29, while Energy was 53 against 56 and Construction/Engineering 51 against 54. Adjustments were (13) against (5). The company notes that ordinary profit from Power Generation & Sales excludes dividends received from consolidated subsidiaries and equity method affiliates, and that because of rounding the total figures are not necessarily equal to the totals of individual figures.

Segment (Before Elimination of Internal Transactions) — Ordinary Profit (100 million yen)	FY2025	FY2024	Change
Consolidated	678	916	(238)
Electric Power	434	674	(240)
Power Generation & Sales	348	413	(65)
Transmission & Distribution	85	261	(176)
Businesses Other than Electric Power	257	246	11
IT/Communications	112	106	6
Energy	53	56	(3)
Construction/Engineering	51	54	(3)
Others	39	29	10
Adjustments	(13)	(5)	(8)

FY2026 Forecast

For FY2026 the company forecasts revenues of 9,250 (100 million yen) against 7,618 in FY2025, operating profit of 370 against 678, ordinary profit of 400 against 678, and net profit attributable to owners of parent of 300 against 508, with net profit per share of 147 yen against 247 yen. Shareholders’ equity is forecast at 4,880 against 4,745, and plant and equipment expenditures at 1,260 against 1,269. Assumption factors include a nuclear capacity factor of 91% against 81%, a coal CIF price of $170/t against $121/t, a crude oil CIF price of $95/b against $71/b, and an exchange rate of ¥160/$ against ¥151/$. Electricity sales are forecast at 221 (100 million kWh) for retail against 229, 168 for wholesale against 115, and 389 in total against 343.

Item	FY2026 Forecast	FY2025 Results
Revenues (100 million yen)	9,250	7,618
Operating Profit (100 million yen)	370	678
Ordinary Profit (100 million yen)	400	678
Net profit attributable to owners of parent (100 million yen)	300	508
Net Profit per Share	147yen	247yen
Shareholders’ equity (100 million yen)	4,880	4,745
Plant and Equipment Expenditures (100 million yen)	1,260	1,269
Nuclear Capacity Factor (%)	91	81
Coal CIF Price ($/t)	170	121
Crude Oil CIF Price ($/b)	95	71
Exchange Rate (¥/$)	160	151
Electricity Sales — Retail (100 million kWh)	221	229
Electricity Sales — Wholesale (100 million kWh)	168	115
Electricity Sales — Total Electric Power (100 million kWh)	389	343

The bridge from FY2025 ordinary profit of 678 (100 million yen) to the FY2026 forecast of 400 is (278). Electric Power accounts for -269, comprising an improvement in the supply-demand balance of +25, amortization of actuarial gains and losses related to retirement benefits of (133), and an increase in various expenses of (161); Businesses Other than Electric Power, etc. accounts for (9). Behind the supply-demand balance are an increase in income unit price of +885, an increase in supply and demand related expenses (price increase) of (1,030), an increase in nuclear power (including nuclear back-end costs) of +70, and an increase in hydropower (as the effects of water shortages in the same period last year have faded) of +95. For FY2026 the company assumes a time lag loss of the fuel cost adjustment system of (135), amortization of actuarial gains and losses of 40, and temporary fluctuations in profit of electricity transmission & distribution companies of (145). By segment, the FY2026 ordinary profit forecast is 165 for Electric Power (Power Generation & Sales 235 and Transmission & Distribution (70)) and 235 for Business Other than Electric Power, including IT/Communications of 100, Energy of 50, Construction/Engineering of 45 and Others of 40.

Shareholder Returns

The company states that paying stable dividends is its basic policy for returns to shareholders, which is decided in the light of comprehensive consideration of business results, financial position, and medium- to long-term business conditions. In FY2025 it plans to pay a year-end dividend of ¥25 (¥50 per year) per share as forecast; the year-end dividend will be officially decided at the general shareholders meeting to be held in June 2026. In addition, the company repurchased shares totaling 3.2 billion yen in FY2025, acquiring 1.86 million shares (excluding the purchase of shares less than one trading unit). For FY2026 it forecasts an interim dividend of ¥27.5 and a year-end dividend of ¥27.5, for a total of ¥55.

Dividends per share (yen)	FY2024	FY2025	FY2026 Forecast
Interim dividend	20	25	27.5
Year-end dividend	20	25	27.5
Total	40	50	55

Medium-Term Management Plan 2030

Under the Medium-Term Management Plan 2030, the management targets for FY2030 are ordinary profit of 65.0 billion yen or more, cash flows from operating activities of 550.0 billion yen or more on a cumulative basis over five years (an annual average of 110.0 billion yen), ROE of 8% or more and ROIC of 3.5% or more, a minimum shareholders’ equity ratio of 25% gradually increasing toward around 30%, and stable dividends with DOE at the 2.5% level plus strategically conducted share buybacks. Against these targets, the FY2026 outlook is ordinary profit of 40.0 billion yen, cash flows from operating activities of 116.0 billion yen, ROE of 6.2%, ROIC of 2.5%, a shareholders’ equity ratio of 27.7% and DOE of 2.3%. ROIC is calculated as “(Ordinary Profit + Interest Expenses) × (1 – Effective Tax Rate) ÷ Invested Capital [Beginning & end-of-term average].”

Management target	FY2026 [Forecast]	Targets on FY2030
Ordinary Profit	40.0 billion yen	65.0 billion yen or more
Cash flows from operating activities	116.0 billion yen	550.0 billion yen or more (The annual average: 110.0 billion yen)
ROE	6.2%	8% or more
ROIC	2.5%	3.5% or more
Shareholders’ equity ratio	27.7%	25~30%
DOE + Share buybacks	2.3%	2.5%

Key Initiatives for FY2026

In the power generation business, the company finalized in April the decision to retire Anan Unit 3 and Sakaide Unit 3, both aging oil-fired units, due to the declining need for their supply capacity; Anan Unit 3, which was already suspended, is due to be decommissioned by June of this year and Sakaide Unit 3 by the second half of FY2027. At Sakaide Power Station, plans are underway to construct Unit 5, a state-of-the-art LNG combined-cycle unit with low CO2 emissions, with operation scheduled to begin in FY2031. At Ikata Power Station, on-line maintenance (OLM) verification was conducted in FY2025 as a pilot plant for nuclear power stations nationwide, and it was confirmed that OLM helped to reduce workloads during periodic inspections and improve the quality of inspections; from FY2026 onward, studies will proceed toward the formal introduction of OLM. The company positions the energy business, including the electric power business, and the IT/communication business as its “Group Core Business,” focuses on “Expansion Areas” such as the international business, and defines the decarbonized power supply business and energy solutions services business as its “Challenge Area.”

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.