JR West raises full-year forecasts and dividend on strong demand

West Japan Railway Company (JR West) has announced an upward revision to its full-year operating income forecast for the fiscal year ending March 2026, now projected at 195 billion yen, and EBITDA at 379 billion yen, exceeding initial targets. This positive outlook is primarily attributed to better-than-expected performance in the mobility, retail, and real estate segments, fueled by the Osaka/Kansai Expo and strong inbound and domestic demand.

The company also declared an increase in its annual dividend, from 86 yen to 90.5 yen per share, reflecting the improved earnings forecast and the impact of share buybacks. The dividend payout ratio remains aligned with the basic policy of at least 35%. JR West completed share buybacks totaling approximately 50.0 billion yen in the first half of FY22.3, fulfilling its planned 100.0 billion yen buyback under the current Medium-Term Management Plan.

JR West's mobility segment saw transportation revenue increase by 31.1 billion yen year-over-year in the first half of FY22.3, with Shinkansen and Kansai Urban Area operations exceeding expectations. The company continues to invest in safety, with an additional 210.0 billion yen in capital investment planned through FY28.3.