JR Central boosts returns, capital efficiency; raises full-year forecast

Central Japan Railway Company (JR Central) has expanded its share repurchase program, increasing the maximum number of shares to be repurchased from 45,000,000 to 48,000,000 and the total repurchase amount from JPY 100 billion to JPY 110 billion. These repurchases, effective from May 1, 2025, to February 27, 2026, will be followed by the cancellation of all acquired treasury shares on March 18, 2026. This move aims to enhance shareholder returns and capital efficiency, building on strong financial results for the six months ended September 30, 2025.

The company reported a 12.4% increase in operating revenues to JPY 982,202 million and a 24.3% rise in operating income to JPY 454,051 million for the first half of fiscal 2026. Consequently, JR Central has revised its full-year consolidated earnings forecast upwards, projecting operating revenues of JPY 1,937,000 million (up from JPY 1,865,000 million) and ordinary income of JPY 691,000 million (up from JPY 608,000 million). Net income attributable to owners of the parent is now forecast at JPY 480,000 million, an increase of JPY 57,000 million from the previous estimate.

These positive revisions are attributed to robust transportation revenue, particularly from the Tokaido Shinkansen and conventional lines, reflecting a strong recovery in demand. Separately, the total construction cost for the Chuo Shinkansen between Shinagawa and Nagoya is now expected to be JPY 11.0 trillion, an increase of approximately JPY 4 trillion from earlier estimates, primarily due to inflation, complex construction challenges, and detailed specification enhancements.