Odakyu Electric Railway targets growth, shareholder returns, and capital efficiency

Odakyu Electric Railway announced its H1 FY3/2026 results and updated forecasts, with operating revenue at ¥198.4 bn and operating profit at ¥28.0 bn for H1 FY3/2026. The company forecasts full-year FY3/2026 operating revenue of ¥425.0 bn and operating profit of ¥53.0 bn. A key initiative is the reduction of cross-held listed shares, targeting sales of ¥30.0 bn or more by FY3/2031, aiming to reduce holdings to approximately ¥10.0 bn. The company also reported ¥7.0 bn in investment securities sales and ¥5.0 bn in gains from sales in H1 FY3/2026, progressing well against its target.

The company reaffirmed its commitment to capital efficiency and shareholder returns, targeting an ROE of 10% or more and operating profit of ¥80.0 bn by FY3/2030. Shareholder returns are projected to be ¥200.0 bn cumulatively from FY3/2026 to FY3/2031, with a goal to reduce the shareholders’ equity ratio to 30% by FY3/2031. An annual dividend of ¥50 per share is planned for FY3/2026, an increase from ¥40 in FY3/2025 and ¥30 in FY3/2024.

Strategic investments include ¥400.0 bn in growth areas from FY3/2026-FY3/2031, with ¥260.0 bn allocated to real estate, ¥84.0 bn to transportation, and ¥56.0 bn to life services. The Shinjuku West Gate Development Project, with a total investment of approximately ¥130.0 bn, is on track for completion in FY3/2030 and inauguration in FY3/2031. The company also emphasizes human capital development and sustainability, evidenced by its inclusion in ESG indices like the FTSE Blossom Japan Sector Relative Index and Sompo Sustainability Index.