Kyushu Railway reports mixed first-half results, extraordinary losses hit net income

Kyushu Railway Company reported a 14.0% increase in consolidated operating revenue to ¥237.6 billion for the first six months of FY26.3, driven by higher railway transportation and real estate sales. Operating income surged by 38.4% to ¥40.8 billion, and ordinary income by 38.7% to ¥41.0 billion. However, net income attributable to owners of the parent decreased by 1.4% to ¥22.3 billion, largely due to extraordinary losses totaling ¥9.3 billion. These losses include approximately ¥1.4 billion from heavy rains in August 2025 and an ¥8.7 billion project withdrawal loss from a Hakata Station development cancellation.

For the full year FY26.3, the company revised its forecasts upward for operating revenue to ¥489.1 billion, operating income to ¥73.1 billion, and ordinary income to ¥72.3 billion, reflecting strong first-half performance and a positive second-half outlook. However, the forecast for net income attributable to owners of the parent was revised downward to ¥46.0 billion due to the extraordinary losses. The company aims for a consolidated dividend payout ratio of 35% or higher, with an expected annual dividend of ¥115 per share for FY26.3.

Railway transportation revenues increased by 14.1% to ¥83.6 billion, benefiting from revised fares and charges. The Real Estate and Hotels segment saw operating revenue grow by 25.3% to ¥76.6 billion, particularly from real estate sales, which increased by 146.6% to ¥20.8 billion. Overall, the company continues to implement its medium-term business plan.