Japan Airport Terminal (9706): FY2025 Results Summary — Record Revenue on Haneda Passenger Growth

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

Japan Airport Terminal Co., Ltd. (TSE Prime, 9706), the operator of the passenger terminals at Tokyo International Airport (Haneda), released its Earnings Presentation Material for the year ended March 31, 2026 (FY2025) on May 13, 2026. Operating revenues came to 289,823 million yen, up 19,899 million yen or 7.4% year on year, and the Company states that, supported by increased passenger traffic and progress in addressing inflation, net sales reached a record high for the first time since 2018. Operating profit rose 16.8% to 45,043 million yen and ordinary profit rose 22.3% to 43,704 million yen; the Company states that, despite increased expenses associated with terminal expansion and other factors, operating income and ordinary income achieved record highs for the third consecutive year. Net profit attributable to owners of parent was 29,139 million yen, up 6.1%.

Passenger Traffic at Haneda Airport

The Company states that passenger traffic at Haneda Airport remained strong in both domestic and international flights and that the impact of China’s travel restraint request was limited. It also states that, as the number of inbound foreign visitors to Japan reached a record high, total passenger traffic at Haneda Airport also hit a record high. Figures below are in units of 10 thousands of passengers, as presented in the materials.

Airport	FY2025 (10 thousands)	FY2024 (10 thousands)	Rate of change (%)	2019 calendar year results (10 thousands)	Rate of change (%)
Haneda – Domestic	6,709	6,499	3.2	6,886	-2.6
Haneda – International	2,457	2,292	7.2	1,853	32.6
Total Haneda	9,166	8,791	4.3	8,740	4.9
Narita	3,539	3,337	6.0	—	—
Kansai	2,708	2,507	8.0	—	—
Chubu Centrair	536	491	9.1	—	—

Consolidated Results (Full-Year Actual)

Operating revenues increased in all three segments. Cost of sales was 100,933 million yen (34.8% of operating revenues) and selling, general and administrative expenses were 143,846 million yen, up 8,877 million yen. Against the revised forecast announced in November 2025, operating revenues exceeded plan by 1,523 million yen, operating profit by 3,543 million yen, ordinary profit by 3,804 million yen and net profit attributable to owners of parent by 3,739 million yen.

Item (Millions of yen)	FY2025	FY2024	Change	Rate of Change (%)
Operating revenues	289,823	269,923	19,899	7.4
Facilities management	117,765	105,540	12,225	11.6
Merchandise sales	154,053	147,666	6,387	4.3
Food and beverage	18,004	16,716	1,287	7.7
Cost of sales	100,933	96,397	4,536	4.7
Gross profit	188,889	173,526	15,363	8.9
Selling, general and administrative expenses	143,846	134,969	8,877	6.6
Operating profit	45,043	38,557	6,486	16.8
Ordinary profit	43,704	35,723	7,980	22.3
Net profit attributable to owners of parent	29,139	27,470	1,668	6.1

Cash flows from operating activities were 71,569 million yen (FY2024: 53,813 million yen), cash flows from investing activities were -39,442 million yen and cash flows from financing activities were -21,168 million yen. Cash and cash equivalents at end of period were 96,837 million yen. Total assets were 491,972 million yen as of March 31, 2026 (469,955 million yen as of March 31, 2025), and the equity ratio improved from 39.9% to 42.7% (+2.8P).

Segment Results

On facilities management, the Company states that increased passenger traffic and the positive effects of various price revisions more than offset higher costs, resulting in increases in both revenue and profit. On merchandise sales, it states that although duty-free sales in the second half exceeded the previous year’s level, lower profit in the first half weighed on full-year results, resulting in higher revenue but lower profit for the fiscal year. Figures below are segment totals including intersegment sales, as presented in the supplementary material.

Segment (Millions of yen)	Item	FY2025	FY2024	Change
Facilities management	Total operating revenues	121,205	108,937	12,267
Facilities management	Operating profit	28,312	19,495	8,816
Merchandise sales	Total operating revenues	155,583	149,377	6,205
Merchandise sales	Operating profit	27,489	29,387	-1,898
Food and beverage	Total operating revenues	19,008	17,680	1,328
Food and beverage	Operating profit	1,150	579	571

Within facilities management, facility user charges revenues rose 8,115 million yen to 68,374 million yen and other revenues rose 2,844 million yen to 27,432 million yen. Within merchandise sales, international terminal stores generated 97,174 million yen (up 1,891 million yen) and other sales 41,306 million yen (up 3,367 million yen); the Company cites an increase in sales of the Ginza duty-free store of 2.1 billion and an increase in sales of “AirBIC” stores outside of airport of 2.1 billion. In food and beverage, sales from in-flight meals rose 988 million yen to 7,888 million yen on increased sales to client airlines.

Duty-Free Store Sales Trends

The materials disclose sales trends at the Haneda duty-free stores. Sales shown are based on total transactions and are different from the amounts recorded on the income statement.

Item	FY2025 1H	FY2025 2H	FY2025 Full-year	FY2024 Full-year	Rate of change
Sales of Haneda duty-free stores (yen)	51.0 billion	56.40 billion	107.40 billion	108.50 billion	– 1%
Number of passengers of Haneda international flights	12.15 million	12.41 million	24.57 million	22.92 million	7%
Number of customers	3.50 million	3.57 million	7.07 million	6.76 million	5%
Per-unit purchases (yen)	14,500	15,700	15,100	16,000	– 6%
Purchase rate	28.8%	28.8%	28.8%	29.5%	– 0.7pt

By nationality, full-year per-unit purchases were 12,700 yen for Japan (up 12%), 24,000 yen for China including Hong Kong (down 9%), 21,500 yen for Taiwan (up 3%), 12,500 yen for South Korea (up 2%), 12,100 yen for North America (down 6%), 15,100 yen for Southeast Asia (up 6%) and 8,200 yen for Europe and others (up 1%). By product category, apparel, jewelry, watches, etc. accounted for 39% of sales in FY2025 (FY2024: 41%), perfumes and cosmetics 26% (26%), alcohol and cigarettes 16% (15%), food 15% (15%) and others 5% (4%).

FY2026 Forecast

The Company states that it will continue implementing inflation countermeasures to achieve higher revenue and profit, and that while net income is projected to decline, dividends are expected to remain unchanged. It adds that should higher material costs and supply shortages materialize, it plans to address them through cost control and other measures.

Item (Millions of yen)	FY2026 (Forecast)	FY2025	Change	Rate of Change (%)
Operating revenues	296,700	289,823	6,876	2.4
Facilities management	125,400	117,765	7,634	6.5
Merchandise sales	152,800	154,053	-1,253	-0.8
Food and beverage	18,500	18,004	495	2.8
Gross profit	199,300	188,889	10,410	5.5
Selling, general and administrative expenses	153,700	143,846	9,853	6.9
Operating profit	45,600	45,043	556	1.2
Ordinary profit	45,800	43,704	2,095	4.8
Net profit attributable to owners of parent	24,200	29,139	-4,939	-17.0

By segment, the Company states that facility usage fees and other charges will be reviewed to offset increased costs associated with terminal expansion, while in merchandise sales revenue and profit are expected to decline due to the closure and renovation of certain stores, including downtown duty-free stores. Segment forecasts (total operating revenues / operating profit, millions of yen) are facilities management 129,500 / 29,800, merchandise sales 154,200 / 27,000 and food and beverage 19,500 / 1,200. Capital expenditure is forecast at 59,000 million yen (FY2025: 32,276 million yen) and depreciation expenses at 31,000 million yen (FY2025: 29,721 million yen).

For passenger traffic, the Company forecasts Haneda domestic at 6,716 (10 thousands, +0.1%), Haneda international at 2,493 (+1.5%) and total Haneda at 9,210 (+0.5%). It states that domestic forecasts are based on solid leisure demand and are expected to remain at the same level as the previous fiscal year, while international growth is expected driven by the daily operation of existing routes and increased seat capacity on North American flights. On the situation in the Middle East, the Company notes that two direct Middle East routes continue to experience flight cancellations and service reductions, that no impact has been observed on recent passenger traffic, and that the initial FY2026 forecast does not factor in a downside scenario.

Shareholder Returns

The dividend for FY2025 was 95 yen, against 90 yen for FY2024 and a revised forecast of 90 yen, with a payout ratio of 30.4% (FY2024: 30.5%; revised forecast: 33.0%). For FY2026 the Company forecasts a dividend of 95 yen with a payout ratio of 36.6%. In its review of the previous Medium-Term Business Plan (FY2022–FY2025), the Company reports that the payout ratio guideline of 30% or higher was achieved at 30.4% and the equity ratio guideline of 40% or higher was achieved at 42.7%, and that it maintained stable returns of profits to shareholders following a recovery in business performance. Dividends payment in the consolidated statements of cash flows was 9,313 million yen (FY2024: 7,171 million yen).

Medium-Term Business Plan (FY2026–FY2030)

The Company released a new Medium-Term Business Plan covering FY2026–FY2030 on May 8, 2026, positioning the period as a “transformation phase toward our vision” built on three management strategies: Improving Efficiency, Enhancing Value and Pursuing Co-creation. FY2030 performance targets and guidelines are operating revenue of 340 billion yen or more, operating income of 55 billion yen or more, ROE of 10%–12%, EPS of 300 yen or more, a total payout ratio of 50% or more (5-year average), maintaining an A+ credit rating, maintaining a Top 3 position in the SKYTRAX World’s Best Airports ranking, a CO2 emissions reduction of -46% (vs. FY2013), off-terminal revenue at Haneda Airport of +30% (vs. FY2025) and an employee engagement index of 82 points or more.

The plan targets operating revenue growth of +17% and operating income growth of +22% versus FY2025, and cites FY2025 EPS of 274 yen (excluding the impact of TIAT carried-forward tax losses). Segment targets for FY2030 are operating revenue of 145 billion yen (up 23%) and operating income of 31 billion yen (up 9%) for facilities management; operating revenue of 170 billion yen (up 10%) and operating income of 35 billion yen (up 27%) for merchandise sales; and operating revenue of 25 billion yen (up 39%) and operating income of 2 billion yen (up 74%) for food and beverage. Assumptions include domestic passengers growing gradually around the 67 million level, international passengers recovering to the post-expansion target level of 25.6 million by FY2030, and an exchange rate of 150 yen per U.S. dollar.

On capital allocation over the plan period (cumulative, FY2026–FY2030), the Company assumes operating cash flow of approximately 350 billion yen and investment cash flow of approximately 220 billion yen, of which growth investments account for approximately 100 billion yen, allocated to large-scale renovations 40%, Airport OS 15%, store renovations 15%, surrounding area development 15% and other 15%. It states that in addition to stable dividends it will strengthen shareholder returns based on a total payout ratio considering share buybacks, targeting a total payout ratio of 50% or higher on a 5-year average.

Topics

On major initiatives in FY2025, the Company cites the construction of the new north-side satellite at Terminal 1 and the extension work for the north-side satellite at Terminal 2, along with the sequential renewal of air-conditioning systems and baggage handling equipment, and revenue expansion through the renovation of boutiques in Terminal 3 and the renewal of the food court in Terminal 1. Named openings include HERMÈS (renewal opening on April 25, 2025), Sora chika (opening September 10, 2025) and HANEDA-YA (opening December 23, 2025).

The materials also provide an update on governance. The Company states that it formulated measures to prevent recurrence regarding compliance issues related to the selection of business partners and related processes (announced on June 12, 2025), and that governance reforms will be implemented across the Group. Reported implementation items include the election of eight independent outside directors (a majority of the Board), the abolition of the senior advisor system and titled director positions, the appointment of independent outside directors as chairs of the Nomination and Compensation Advisory Committees, the establishment of an Audit and Supervisory Committee Office, the establishment of an external compliance hotline, and the establishment of a Management Improvement Committee, which held 11 meetings by March.

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.