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Odakyu Electric Railway Reports Decline in Profits

Odakyu Electric Railway Reports Decline in Profits

Odakyu Electric Railway Co ( (ODERF) ) has released its Q2 earnings. Here is a breakdown of the information Odakyu Electric Railway Co presented to its investors.

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Odakyu Electric Railway Co., Ltd. is a prominent Japanese company operating in the transportation sector, primarily known for its railway services, real estate, and life services. The company is listed on the Tokyo Stock Exchange and is recognized for its comprehensive transportation network in Japan.

In the latest earnings report for the six months ending September 30, 2025, Odakyu Electric Railway Co. reported a decline in key financial metrics compared to the previous year. Operating revenues decreased by 5.4% to ¥198,448 million, and profit attributable to owners of the parent fell by 30.1% to ¥23,069 million. Despite these declines, the company maintained a stable equity-to-asset ratio of 36.3%.

The company’s operating profit was ¥28,034 million, representing a 3.5% decrease from the previous year. Ordinary profit also saw a decline of 7.8%, amounting to ¥27,459 million. The decrease in profits was attributed to lower operating revenues and increased non-operating expenses, including higher interest expenses. However, the company managed to increase its cash and deposits significantly, indicating a strong liquidity position.

Looking ahead, Odakyu Electric Railway Co. has revised its earnings forecast for the fiscal year ending March 31, 2026. The company anticipates a slight increase in operating revenues by 0.5% to ¥425,000 million and a 3.0% rise in operating profit to ¥53,000 million. However, profit attributable to owners of the parent is expected to decrease by 32.6% to ¥35,000 million, reflecting ongoing challenges in the market.

Overall, Odakyu Electric Railway Co. remains focused on navigating the current economic landscape while leveraging its strengths in transportation and real estate. The management is cautiously optimistic about achieving its revised financial targets and continuing to deliver value to its shareholders.

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