Kyushu Railway : Summary of Financial Results for the Second Quarter (Interim)（342 KB）

About this update from Kyushu Railway Company

(Translation) Consolidated Financial Results for the Six-Month (Interim) Period Ended September 30, 2025 (Japanese GAAP) November 5, 2025 Company name: Kyushu Railway Company Stock exchange listings: Tokyo and Fukuoka Securities code: 9142 URL: https://www.jrkyushu.co.jp/ Representative: Yoji Furumiya, President and CEO Contact: Rie Kanegae, General Manager, Public Relations Department Tel.: +81-92-474-3677 Scheduled date for filing of interim report: November 7, 2025 Planned date of dividend payment commencement: December 3, 2025 Preparation of supplementary explanations for financial results: Yes Holding of a briefing on quarterly financial results: Yes (for institutional investors and securities analysts) (Amounts less than one million yen, except for per share amounts, are omitted.) Consolidated Financial Results for the Six-Month (Interim) Period Ended September 30, 2025 (From April 1, 2025 to September 30, 2025) Consolidated operating results (Percentages show year-on-year changes.) Operating revenue Operating income Ordinary income Net income attributable to owners of the parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2025 237,616 14.0 40,887 38.4 41,026 38.7 22,333 (1.4) September 30, 2024 208,412 9.3 29,535 10.1 29,577 5.4 22,649 (19.1) (Note) Comprehensive income: Six months ended September 30, 2025: ¥32,147 million [53.7%] Six months ended September 30, 2024: ¥20,912 million [(39.9%)] Net income per share - basic Net income per share - diluted Six months ended Yen Yen September 30, 2025 144.93 - September 30, 2024 144.38 - Consolidated financial position Total assets Net assets Equity ratio Millions of yen Millions of yen % As of September 30, 2025 1,172,479 474,110 40.2 As of March 31, 2025 1,140,509 458,620 40.0 (Reference) Shareholders' equity: As of September 30, 2025: ¥471,174 million As of March 31, 2025: ¥456,507 million Dividends Annual dividends First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Year ended March 31, 2025 - 46.50 - 51.50 98.00 Year ending March 31, 2026 - 57.50 Year ending March 31, 2026 (Forecast) - 57.50 115.00 (Note) Revisions to the most recently disclosed dividend forecasts: No Consolidated Forecasts for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026) (Percentages show year-on-year changes.) Operating revenue Operating income Ordinary income Net income attributable to owners of the parent Net income per share Full year Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen 489,100 7.6 73,100 23.9 72,300 21.4 46,000 5.4 298.52 (Note) Revisions to the most recently disclosed financial forecasts: Yes (Note 2) For details regarding the revision of the consolidated performance forecast, please refer to the "Notice Regarding Revision of the Full-Year Performance Forecast for the Fiscal Year Ending March 31, 2026" released on November 5, 2025. Notes Significant changes in the scope of consolidation during the six months ended September 30,2025: Yes Newly added: Two companies, including Meijikensetsu Co., Ltd.; excluded: One company, JR Kyushu Linen Co., Ltd. Note: For details, see "Changes in the Scope of Consolidation or Application of the Equity Method" on page 9 of the Attachments Application of special accounting treatment in preparing the interim consolidated financial statements: No Changes in accounting policies, changes in accounting estimates and restatement of revisions Changes in accounting policies with revision of accounting standards: No Changes in accounting policies other than the above: No Changes in accounting estimates: No Restatement of revisions: No Number of shares outstanding (common stock) i Number of shares issued and outstanding at end of period (including treasury stock) As of September 30, 2025 154,649,000 Shares As of March 31, 2025 157,301,600 Shares ii Number of shares of treasury stock at end of period As of September 30, 2025 959,434 Shares As of March 31, 2025 1,111,485 Shares iii Average number of shares during the period As of September 30, 2025 154,093,872 Shares As of September 30, 2024 156,872,699 Shares Note: The number of shares of treasury stock at the end of the period includes the number of shares of the Company's stock held by the Board Benefit Trust (BBT) (1H FY2026/3, 172,800 shares; FY2025/3, 176,600 shares) and shares of the Company's stock held by the Stock-based Benefit Trust (Employee Shareholders Association Purchase-type) (1H FY2026/3, 786,300 shares, FY2025/3, 934,600 shares). In addition, the number of shares of the Company's stock held by the Board Benefit Trust (BBT) (1H FY2026/3, 175,333 shares; 1H FY2025/3, 176,600 shares) and shares of the Company's stock held by the Stock-based Benefit Trust (Employee Shareholders Association Purchase-type) (1H FY2026/3, 851,867 shares; 1H FY2025/3, 252,133 shares) are included in the treasury stock that is subtracted in the calculation of the average number of shares during the period. This summary of interim financial results is not subject to audits by certified public accountants or accounting auditors. Explanation of Appropriate Uses of Performance Forecasts and Other Important Items: Performance forecasts and other forward-looking statements appearing in this document are based on currently available information and specific assumptions deemed rational, and are not assurances that the Company will achieve these forecasts. Actual performance can vary greatly depending on various factors such as fluctuations in interest rates, fluctuations in share prices, changes in exchange rates, fluctuations in the value of assets, changes in the economic and financial environment, changes in the conditions of competition, occurrences of large-scale and other disasters, and changes in regulations. Supplementary quarterly materials are attached to this summary of interim consolidated financial results. A financial results briefing for institutional investors and securities analysts is scheduled to be held on November 6, 2025 (Thursday). The presentation materials used for this briefing will be posted on TDnet and the Company's website. Contents of Accompanying Materials Operating Results Overview ２ Interim Consolidated Financial Statements and Major Notes ３ Interim Consolidated Balance Sheets ３ Interim Consolidated Income Statements and Interim Consolidated Comprehensive Income Statements ５ Interim Consolidated Income Statements ５ Interim Consolidated Comprehensive Income Statements ６ Interim Consolidated Statements of Cash Flows ７ Notes to Interim Consolidated Financial Statements ９ (Notes on Going Concern Assumption) ９ (Changes in the Scope of Consolidation or Application of the Equity Method) ９ (Notes on Significant Changes in the Value of Shareholders' Equity) ９ (Additional Information) ９ (Notes on Segment Information, etc.) 10 Operating Results Overview Consolidated operating revenue for the six months under review increased for the fifth consecutive period, driven by higher railway transportation revenue and growth in revenue from the sale of real estate. As a result, consolidated operating income and consolidated ordinary income also rose for the fifth consecutive period. However, due to the booking of a loss associated with the cancellation of the project utilizing the space above the tracks at Hakata Station, net income attributable to owners of the parent declined for the second consecutive period. The Group's business performance by segment is as follows. (Millions of Yen) Operating revenue Operating income/loss EBITDA (Note 2) 1H FY2026/3 YoY 1H FY2026/3 YoY 1H FY2026/3 YoY Transportation 92,222 10,050 12.2% 18,533 6,244 50.8% 25,713 6,960 37.1% Real Estate and Hotels 76,662 15,494 25.3% 17,876 4,717 35.9% 26,984 4,902 22.2% Real estate lease 39,968 2,301 6.1% 10,300 1,062 11.5% 17,537 1,079 6.6% Real estate sale 20,896 12,422 146.6% 4,582 3,688 412.6% 4,587 3,686 408.8% Hotel 15,798 770 5.1% 2,993 (33) (1.1%) 4,858 136 2.9% Retail and Restaurant 34,690 2,263 7.0% 2,049 175 9.4% 2,747 172 6.7% Construction 40,644 4,070 11.1% 687 447 186.5% 1,312 463 54.6% Business Services 39,347 2,665 7.3% 2,323 330 16.6% 3,661 102 2.9% Total 283,566 34,544 13.9% 41,469 11,915 40.3% 60,419 12,602 26.4% Adjustment (Note 1) (45,950) (5,341) - (582) (563) - (784) (570) - Amount on the consolidated financial statements 237,616 29,203 14.0% 40,887 11,351 38.4% 59,635 12,031 25.3% (Notes) 1. Adjustments reflect the elimination of intersegment transactions. Consolidated EBITDA = operating income + depreciation (after elimination of intersegment transactions, excluding the cost of depreciation related to lease assets held for the purpose of subleasing), segment EBITDA = segment operating income + segment depreciation (before elimination of intersegment transactions, excluding the cost of depreciation related to lease assets held for the purpose of subleasing) For further details, please refer to the "Financial Results Presentation Materials for the Second Quarter, FY2026.3," which is scheduled to be posted on TDnet and the Company's website on Thursday, November 6, 2025. 2. Interim Consolidated Financial Statements and Major Notes Interim Consolidated Balance Sheets FY 2025/3 (As of March 31, 2025) (Millions of Yen) 1H FY2026/3 (As of September 30, 2025) ASSETS Current assets Cash and time deposits 35,057 37,119 Notes and accounts receivable-trade, and contract assets 58,152 45,160 Fares receivable 3,235 3,583 Securities 11,027 25,220 Merchandise and finished goods 20,533 11,269 Work in process 47,995 72,765 Raw materials and supplies 10,871 13,269 Other 27,371 22,234 Allowance for doubtful accounts (98) (83) Total current assets 214,146 230,539 Non-current assets Property, plant and equipment Buildings and fixtures (net) 410,184 400,312 Machinery, rolling stock and vehicles (net) 77,236 77,934 Land 218,266 216,580 Lease assets (net) 22,058 21,841 Construction in progress 27,182 42,820 Other (net) 11,677 11,185 Net property, plant and equipment 766,606 770,674 Intangible assets 5,427 6,089 Investments and other assets Investment securities 53,217 66,054 Deferred tax assets 41,039 35,598 Net defined benefit assets 1,277 1,328 Other 61,226 64,526 Allowance for doubtful accounts (2,431) (2,331) Total investments and other assets 154,329 165,176 Total non-current assets 926,362 941,939 Total assets 1,140,509 1,172,479 FY 2025/3 (As of March 31, 2025) (Millions of Yen) 1H FY2026/3 (As of September 30, 2025) LIABILITIES Current liabilities Notes and accounts payable-trade 32,336 18,357 Short-term loans 2,495 2,341 Commercial papers 25,000 15,000 Current portion of bonds 5,000 5,000 Current portion of long-term loans 32,065 31,686 Payables 48,268 36,129 Accrued income taxes 9,355 7,590 Fare deposits received with regard to railway connecting services 3,265 3,196 Railway fares received in advance 9,241 9,124 Accrued bonuses 11,276 10,348 Other 34,401 49,691 Total current liabilities 212,706 188,466 Non-current liabilities Corporate bonds 180,000 195,000 Long-term loans 178,760 209,036 Allowance for safety and environmental measures 595 595 Allowance for disaster-damage losses 2,629 4,044 Net defined benefit liabilities 44,324 45,385 Asset retirement obligations 2,875 2,872 Other 59,997 52,968 Total non-current liabilities 469,181 509,903 Total liabilities 681,888 698,369 NET ASSETS Shareholders' equity Common stock 16,000 16,000 Capital surplus 226,063 216,063 Retained earnings 211,021 225,261 Treasury stock (4,311) (3,705) Total shareholders' equity 448,773 453,619 Accumulated other comprehensive income Unrealized gain on available-for-sale securities 8,075 17,701 Foreign currency translation adjustments (178) (144) Remeasurements of defined benefit plans (163) (1) Total accumulated other comprehensive income 7,733 17,555 Non-controlling interests 2,113 2,935 Total net assets 458,620 474,110 TOTAL LIABILITIES AND NET ASSETS 1,140,509 1,172,479 Interim Consolidated Income Statements and Interim Consolidated Comprehensive Income Statements (Interim Consolidated Income Statements) (Millions of Yen) 1H FY2025/3 (Six months ended September 1H FY2026/3 (Six months ended September 30, 2024) 30, 2025) OPERATING REVENUE 208,412 237,616 OPERATING EXPENSE Transportation, other services and cost of sales 117,960 132,256 Selling, general and administrative expense 60,916 64,471 Total operating expense 178,876 196,728 OPERATING INCOME 29,535 40,887 NON-OPERATING INCOME Interest income 56 91 Dividend income 523 625 Gain on assets held in trust 643 796 Other 668 808 Total non-operating income 1,891 2,323 NON-OPERATING EXPENSE Interest expense 1,452 2,020 Other 398 164 Total non-operating expense 1,850 2,185 ORDINARY INCOME 29,577 41,026 EXTRAORDINARY GAINS Construction grants received 487 364 Gain on sales of shares of fixed assets 240 1,256 Other 208 118 Total extraordinary gains 936 1,739 EXTRAORDINARY LOSSES Loss on reduction of noncurrent assets 467 359 Loss on project withdrawal - 8,702 Provision for loss on disaster - 1,418 Disaster-damage losses - 54 Other 216 587 Total extraordinary losses 683 11,122 INCOME BEFORE INCOME TAXES 29,830 31,643 INCOME TAXES -Current 1,083 6,650 INCOME TAXES -Deferred 6,104 2,667 TOTAL INCOME TAXES 7,187 9,317 NET INCOME 22,642 22,326 NET INCOME (LOSS) ATTRIBUTABLE TO NON- (7) (7) CONTROLLING INTERESTS NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT 22,649 22,333 (Interim Consolidated Comprehensive Income Statements) (Millions of Yen) 1H FY2025/3 1H FY2026/3 (Six months ended September (Six months ended September 30, 2024) 30, 2025) INTERIM NET INCOME 22,642 22,326 OTHER COMPREHENSIVE INCOME Unrealized gain on available-for-sale securities (1,955) 9,624 Foreign currency translation adjustments (36) 34 Remeasurements of defined benefit plans 262 162 Share of other comprehensive income of affiliates accounted for by the equity method (0) 0 Total other comprehensive income (1,730) 9,821 COMPREHENSIVE INCOME 20,912 32,147 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the parent 20,921 32,155 Non-controlling interests (9) (8) (3) Interim Consolidated Statements of Cash Flows (Millions of Yen) 1H FY2025/3 1H FY2026/3 (Six months ended September (Six months ended September 30, 2024) 30, 2025) CASH FLOWS FROM OPERATING ACTIVITIES Income before income taxes 29,830 31,643 Depreciation 18,765 19,528 Losses from provision for cost reduction of fixed 467 359 assets Loss on project withdrawal - 8,702 Provision for loss on disaster - 1,418 Disaster-damage losses - 54 Net change in allowance for doubtful accounts 122 (115) Net change in net defined benefit liabilities 1,097 1,217 Interest and dividend income (579) (717) Interest expense 1,452 2,020 Construction grants received (487) (364) Gain on assets held in trust (643) (796) Net change in trade receivables 18,529 13,100 Net change in inventories (4,361) (11,658) Net change in trade payables (7,203) (14,266) Losses (gains) on sales of fixed assets (240) (1,256) Other (1,742) 473 Sub-total 55,005 49,343 Proceeds from interest and dividends 551 684 Payments of interest (1,291) (1,651) Proceeds from gain on assets held in trust 639 791 Payments of disaster-damage losses (629) (107) Income taxes refunded (paid) 539 (8,540) Net cash provided by operating activities 54,814 40,520 CASH FLOWS FROM INVESTING ACTIVITIES Payments for purchases of fixed assets (54,888) (42,325) Proceeds from sales of property, plant and equipment 287 1,435 Purchases of investment securities (2,100) (5,620) Proceeds from construction grants 3,304 4,579 Other (310) (158) Net cash used in investing activities (53,707) (42,089) (Millions of Yen) 1H FY2025/3 (Six months ended September 1H FY2026/3 (Six months ended September 30, 2024) 30, 2025) CASH FLOWS FROM FINANCING ACTIVITIES Net change in short-term loans 35 (44) Net change in commercial papers (30,000) (10,000) Proceeds from long-term loans payable 21,869 38,500 Repayments of long-term loans (7,167) (7,635) Repayments of long-term liabilities (128) - Proceeds from issuance of bonds 20,000 15,000 Payments for redemption of bonds (255) - Proceeds from deposits and guarantees 1,276 1,228 Redemption of deposits and guarantees (223) (408) Cash dividends paid (14,629) (8,101) Purchase of treasury stocks (4,367) (10,000) Proceeds from sales of treasury stocks 58 605 Other (2,461) (1,830) Net cash used in financing activities (15,993) 17,314 TRANSLATION DIFFERENCES FOR CASH AND CASH EQUIVALENTS 75 4 CASH AND CASH EQUIVALENTS AT BEGINNING 61,907 45,799 INCREASE IN CASH AND CASH EQUIVALENTS 1,416 193 CASH AND CASH EQUIVALENTS AT END OF THE 48,512 61,742 NET CHANGE IN CASH AND CASH EQUIVALENTS (14,810) 15,749 OF THE PERIOD FROM NEWLY CONSOLIDATED SUBSIDIARIES PERIOD Notes to Interim Consolidated Financial Statements (Notes on Going Concern Assumption) None (Changes in the Scope of Consolidation or Application of the Equity Method) Meijikensetsu Co., Ltd. and Showatecs Co., Ltd. have been included in the scope of consolidation from the first half of FY2026.3 due to their increased materiality. JR Kyushu Linen Co., Ltd. has been excluded from the scope of consolidation from the first half of FY2026.3 following its absorption-type merger into JR Kyushu Service Support Co., Ltd., the surviving company. (Notes on Significant Changes in the Value of Shareholders' Equity) None (Additional Information) (Damage caused by the "Heavy Rains Beginning August 6, 2025") In August 2025, heavy rainfall occurred across parts of Kyushu, causing damage such as mudslides and embankment collapses on the Nippo Main Line, Hisatsu Line, and other lines. Of the restoration-related costs stemming from this event, those incurred during the first half of FY2026.3, have been recorded under "loss on disaster." Additionally, estimated costs expected to be incurred after the first half of FY2026.3 onward have been reasonably calculated and recorded as "provision for loss on disaster" under extraordinary losses during the first half of FY2026.3. (Cancellation of Treasury Stock) At a meeting of the Board of Directors held on September 2, 2025, the Company resolved to cancel treasury stock pursuant to Article 178 of the Companies Act. Reason for the cancellation: To enhance shareholder returns and improve capital efficiency Type of shares cancelled: Common stock of the Company Total number of shares cancelled: 2,652,600 shares (Equivalent to 1.69% of total shares outstanding before cancellation) Effective date of cancellation: September 9, 2025 As a result, during the first half of FY2026.3, "treasury stock" and "capital surplus" under net assets in the consolidated balance sheet each decreased by ¥9,999 million. (Notes on segment information, etc.) (Segment information) 1H FY2025/3 (from April 1 to September 30, 2024) Information Related to Operating Revenue and Income (Loss) by Segment (Millions of Yen) Reportable Segment Total Adjustment (Note 1) Interim Consolidated Statements of Income (Note 2) Transportation Real Estate and Hotels Retail and Restaurant Construction Business Services Operating Revenue Outside Customers 79,710 58,772 32,237 17,316 20,375 208,412 - 208,412 Inside Group 2,460 2,395 189 19,256 16,306 40,609 (40,609) - Total 82,171 61,167 32,427 36,573 36,681 249,021 (40,609) 208,412 Segment income 12,288 13,158 1,874 239 1,992 29,554 (18) 29,535 (Notes) 1. The ¥(18) million deduction from segment income (loss) reflects the elimination of intersegment transactions. Segment income (loss) has been adjusted for the operating income figure on the interim consolidated income statements. 1H FY2026/3 (from April 1 to September 30, 2025) Information Related to Operating Revenue and Income (Loss) by Segment (Millions of Yen) Reportable Segment Total Adjustment (Note 1) Interim Consolidated Statements of Income (Note 2) Transportation Real Estate and Hotels Retail and Restaurant Construction Business Services Operating Revenue Outside Customers 89,704 74,154 34,487 18,421 20,847 237,616 - 237,616 Inside Group 2,517 2,507 202 22,222 18,499 45,950 (45,950) - Total 92,222 76,662 34,690 40,644 39,347 283,566 (45,950) 237,616 Segment income 18,533 17,876 2,049 687 2,323 41,469 (582) 40,887 (Notes) 1. The ¥(582) million deduction from segment income (loss) reflects the elimination of intersegment transactions. Segment income (loss) has been adjusted for the operating income figure on the interim consolidated income statements.

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