Kyushu Railway : Summary of Financial Results for the Third Quarter（238 KB）

About this update from Kyushu Railway Company

(Translation) Consolidated Financial Results for the Nine-Month Period Ended December 31, 2025 (Japanese GAAP) February 10, 2026 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 Planned date of dividend payment commencement: － 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 Nine-Month Period Ended December 31, 2025 (From April 1, 2025 to December 31, 2025) Consolidated operating results (Percentages show year-on-year changes.) Operating revenue Operating income Ordinary income Net income attributable to owners of the parent Nine months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % December 31, 2025 360,019 11.8 62,731 26.3 63,079 26.2 40,834 9.2 December 31, 2024 321,903 9.9 49,673 15.1 49,975 11.5 37,399 (8.2) (Note) Comprehensive income: Nine months ended December 31, 2025: ¥53,858 million [58.4%] Nine months ended December 31, 2024: ¥34,004 million [(25.3%)] Net income per share - basic Net income per share - diluted Nine months ended Yen Yen December 31, 2025 265.21 - December 31, 2024 238.81 - Consolidated financial position Total assets Net assets Equity ratio Millions of yen Millions of yen % As of December 31, 2025 1,214,975 484,978 39.8 As of March 31, 2025 1,140,509 458,620 40.0 (Reference) Shareholders' equity: As of December 31, 2025: ¥484,082 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 Year ended March 31, 2025 Year ended March 31, 2026 Yen - - Yen 46.50 57.50 Yen - - Yen 51.50 Yen 98.00 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 489,100 % 7.6 Millions of yen 73,100 % 23.9 Millions of yen 72,300 % 21.4 Millions of yen 46,000 % 5.4 Yen 298.76 (Note) Revisions to the most recently disclosed financial forecasts: No Notes Significant changes in the scope of consolidation during the nine months ended December 31, 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 7 of the Attachments Application of special accounting treatment in preparing the quarterly 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) As of December 31, 2025 154,649,000 Shares As of March 31, 2025 157,301,600 Shares As of December 31, 2025 913,734 Shares As of March 31, 2025 1,111,485 Shares As of December 31, 2025 153,969,314 Shares As of December 31, 2024 156,607,573 Shares Number of shares issued and outstanding at end of period (including treasury stock) Number of shares of treasury stock at end of period Average number of shares during the period 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) (Q3 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) (Q3 FY2026/3, 740,600 shares; FY2025/3, 934,600 shares). In addition, the number of shares of the Company's stock held by the Board Benefit Trust (BBT) (Q3 FY2026/3, 174,489 shares; Q3 FY2025/3, 176,600 shares) and shares of the Company's stock held by the Stock-based Benefit Trust (Employee Shareholders Association Purchase-type) (Q3 FY2026/3, 819,800 shares; Q3 FY2025/3, 517,222 shares) are included in the treasury stock that is subtracted in the calculation of the average number of shares during the period. Review of the attached quarterly consolidated financial statements by certified public accountants or accounting auditors: Yes (voluntary) 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 February 10, 2026 (Tuesday). 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 Quarterly Consolidated Financial Statements and Major Notes 3 Consolidated Balance Sheets …………………………………………………………………………………… 3 Quarterly Consolidated Income Statements and Quarterly Consolidated Comprehensive Income Statements 5 Notes to Quarterly Consolidated Financial Statements 7 (Notes on Going Concern Assumption) 7 (Changes in the Scope of Consolidation or Application of the Equity Method)… 7 (Notes on Significant Changes in the Value of Shareholders' Equity) 7 (Additional Information) 7 (Notes Related to the Quarterly Consolidated Statement of Cash Flows) 7 (Notes on Segment Information, etc.) 8 Operating Results Overview Consolidated operating revenue for the nine 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. Net income attributable to owners of the parent also rose for the first time in two periods. The Group's business performance by segment is as follows. (Millions of Yen) Operating revenue Operating income/loss EBITDA (Note 2) FY2026/3, consolidated cumulative third quarter (nine months ended December 31, 2025) YoY FY2026/3, consolidated cumulative third quarter (nine months ended December 31, 2025) YoY FY2026/3, consolidated cumulative third quarter (nine months ended December 31, 2025) YoY Transportation 142,603 16,370 13.0% 28,480 9,497 50.0% 39,334 10,576 36.8% Real Estate and Hotels 109,081 14,679 15.6% 25,920 3,243 14.3% 39,704 3,567 9.9% Real estate lease 60,609 3,313 5.8% 15,213 878 6.1% 26,171 919 3.6% Real estate sale 22,695 9,830 76.4% 4,549 2,015 79.5% 4,557 2,012 79.1% Hotel 25,776 1,535 6.3% 6,157 349 6.0% 8,974 635 7.6% Retail and Restaurant 53,597 3,476 6.9% 3,396 336 11.0% 4,486 344 8.3% Construction 68,280 6,499 10.5% 2,312 258 12.6% 3,300 317 10.6% Business Services 59,793 5,393 9.9% 3,253 356 12.3% 5,366 27 0.5% Total 433,356 46,419 12.0% 63,362 13,693 27.6% 92,192 14,832 19.2% Adjustment (Note 1) (73,336) (8,303) - (631) (635) - (935) (644) - Amount on the consolidated financial statements 360,019 38,115 11.8% 62,731 13,058 26.3% 91,256 14,188 18.4% (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 Third Quarter, FY2026.3," which is scheduled to be posted on TDnet and the Company's website on Tuesday, February 10, 2026. 2. Quarterly Consolidated Financial Statements and Major Notes Consolidated Balance Sheets FY 2025/3 (As of March 31, 2025) (Millions of Yen) FY 2026/3, Third Quarter (As of December 31, 2025) ASSETS Current assets Cash and time deposits 35,057 57,129 Notes and accounts receivable-trade, and contract assets 58,152 49,613 Fares receivable 3,235 4,156 Securities 11,027 24,200 Merchandise and finished goods 20,533 10,904 Work in process 47,995 76,463 Raw materials and supplies 10,871 13,569 Other 27,371 25,528 Allowance for doubtful accounts (98) (87) Total current assets 214,146 261,478 Non-current assets Property, plant and equipment Buildings and fixtures (net) 410,184 412,991 Machinery, rolling stock and vehicles (net) 77,236 78,829 Land 218,266 218,660 Lease assets (net) 22,058 22,454 Construction in progress 27,182 34,892 Other (net) 11,677 11,364 Net property, plant and equipment 766,606 779,192 Intangible assets 5,427 6,204 Investments and other assets Investment securities 53,217 70,658 Deferred tax assets 41,039 31,932 Net defined benefit assets 1,277 1,361 Other 61,226 66,576 Allowance for doubtful accounts (2,431) (2,430) Total investments and other assets 154,329 168,098 Total non-current assets 926,362 953,496 Total assets 1,140,509 1,214,975 FY 2025/3 (As of March 31, 2025) (Millions of Yen) FY 2026/3, Third Quarter (As of December 31, 2025) LIABILITIES Current liabilities Notes and accounts payable-trade 32,336 21,709 Short-term loans 2,495 2,439 Commercial papers 25,000 - Current portion of bonds 5,000 - Current portion of long-term loans 32,065 38,447 Payables 48,268 48,723 Accrued income taxes 9,355 5,932 Fare deposits received with regard to railway connecting services 3,265 2,727 Railway fares received in advance 9,241 8,047 Accrued bonuses 11,276 5,460 Other 34,401 54,024 Total current liabilities 212,706 187,511 Non-current liabilities Corporate bonds 180,000 230,000 Long-term loans 178,760 205,743 Allowance for safety and environmental measures 595 594 Allowance for disaster-damage losses 2,629 3,890 Net defined benefit liabilities 44,324 45,982 Asset retirement obligations 2,875 2,881 Other 59,997 53,392 Total non-current liabilities 469,181 542,484 Total liabilities 681,888 729,996 NET ASSETS Shareholders' equity Common stock 16,000 16,000 Capital surplus 226,063 215,968 Retained earnings 211,021 234,869 Treasury stock (4,311) (3,522) Total shareholders' equity 448,773 463,315 Accumulated other comprehensive income Unrealized gain on available-for-sale securities 8,075 20,873 Foreign currency translation adjustments (178) (177) Remeasurements of defined benefit plans (163) 70 Total accumulated other comprehensive income 7,733 20,766 Non-controlling interests 2,113 895 Total net assets 458,620 484,978 TOTAL LIABILITIES AND NET ASSETS 1,140,509 1,214,975 Quarterly Consolidated Income Statements and Quarterly Consolidated Comprehensive Income Statements Quarterly Consolidated Income Statements Consolidated Cumulative Third Quarter (Millions of Yen) FY 2025/3, Third Quarter (Nine months ended December FY 2026/3, Third Quarter (Nine months ended December 31, 2024) 31, 2025) OPERATING REVENUE 321,903 360,019 OPERATING EXPENSE Transportation, other services and cost of sales 179,118 198,363 Selling, general and administrative expense 93,111 98,924 Total operating expense 272,230 297,287 OPERATING INCOME 49,673 62,731 NON-OPERATING INCOME Interest income 90 129 Dividend income 938 1,150 Gain on assets held in trust 1,052 1,264 Other 1,004 1,305 Total non-operating income 3,086 3,849 NON-OPERATING EXPENSE Interest expense 2,283 3,159 Other 500 341 Total non-operating expense 2,783 3,501 ORDINARY INCOME 49,975 63,079 EXTRAORDINARY GAINS Construction grants received 616 731 Gain on sales of fixed assets 319 2,229 Gain on sales of investment securities 271 - Other 145 239 Total extraordinary gains 1,352 3,200 EXTRAORDINARY LOSSES Loss on reduction of noncurrent assets 596 720 Project withdrawal losses - 8,702 Provision for loss on disaster - 1,264 Disaster-damage losses - 217 Other 324 735 Total extraordinary losses 920 11,639 INCOME BEFORE INCOME TAXES 50,407 54,640 INCOME TAXES -Current 4,289 8,965 INCOME TAXES -Deferred 8,726 4,846 TOTAL INCOME TAXES 13,016 13,811 NET INCOME 37,391 40,829 NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (7) (5) NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT 37,399 40,834 Quarterly Consolidated Comprehensive Income Statements Consolidated Cumulative Third Quarter (Millions of Yen) FY 2025/3, Third Quarter FY 2026/3, Third Quarter (Nine months ended December (Nine months ended December 31, 2024) 31, 2025) NET INCOME 37,391 40,829 OTHER COMPREHENSIVE INCOME Unrealized gain on available-for-sale securities (3,725) 12,793 Foreign currency translation adjustments (44) 0 Remeasurements of defined benefit plans 382 234 Share of other comprehensive income of affiliates accounted for by the equity method (0) 1 Total other comprehensive income (3,387) 13,029 COMPREHENSIVE INCOME 34,004 53,858 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the parent 34,015 53,867 Non-controlling interests (10) (9) Notes to Quarterly Consolidated Financial Statements The quarterly consolidated financial statements have been prepared in accordance with Article 4, Paragraph 1, of the Standards for the Preparation of Quarterly Financial Statements of the Tokyo Stock Exchange, Inc. and the Fukuoka Stock Exchange, Inc. and generally accepted accounting standards in Japan regarding quarterly financial statements. (However, the omission of the description prescribed in Article 4, Paragraph 2 of the Standards for the Preparation of Quarterly Financial Statements is applied.) (Notes on Going Concern Assumption) None (Changes in the Scope of Consolidation or Application of the Equity Method) (Significant Changes in the Scope of Consolidation) Meijikensetsu Co., Ltd. and Showatecs Co., Ltd. have been included in the scope of consolidation from the first quarter of FY2026.3 due to their increased materiality. JR Kyushu Linen Co., Ltd. has been excluded from the scope of consolidation from the first quarter 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 nine months of FY2026.3, have been recorded under "loss on disaster." Additionally, estimated costs expected to be incurred during or after the end of the fourth quarter of FY2026.3 have been reasonably calculated and recorded as "provision for loss on disaster" under extraordinary losses during the nine months 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 nine months of FY2026.3, "treasury stock" and "capital surplus" under net assets in the consolidated balance sheet each decreased by ¥9,999 million. (Notes Related to the Quarterly Consolidated Statement of Cash Flows) Quarterly consolidated statements of cash flows have not been prepared for the third quarter of the current fiscal year. Depreciation and amortization expenses (including amortization expenses related to intangible fixed assets excluding goodwill) for the third quarter of the fiscal year under review are as follows. FY2025/3 Third Quarter (Nine months ended December 31, 2024) FY2026/3 Third Quarter (Nine months ended December 31, 2025) Depreciation costs ¥28,455 million ¥29,703 million (Note) Amortization of goodwill is omitted because the amounts are immaterial. (Notes on segment information, etc.) (Segment information) Third Quarter of the Previous Fiscal Year (from April 1 to December 31, 2024) Information Related to Operating Revenue and Income (Loss) by Segment (Millions of Yen) Reportable Segment Total Adjustment (Note 1) Quarterly Consolidated Statements of Income (Note 2) Transportation Real Estate and Hotels Retail and Restaurant Construction Business Services Operating Revenue Outside Customers 122,500 90,746 49,823 28,838 29,995 321,903 - 321,903 Inside Group 3,732 3,655 297 32,942 24,404 65,033 (65,033) - Total 126,233 94,402 50,121 61,780 54,399 386,936 (65,033) 321,903 Segment income 18,982 22,676 3,059 2,054 2,896 49,669 3 49,673 (Notes) 1. The ¥3 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 quarterly consolidated income statements. Third Quarter of the Current Fiscal Year (from April 1 to December 31, 2025) Information Related to Operating Revenue and Income (Loss) by Segment (Millions of Yen) Reportable Segment Total Adjustment (Note 1) Quarterly Consolidated Statements of Income (Note 2) Transportation Real Estate and Hotels Retail and Restaurant Construction Business Services Operating Revenue Outside Customers 138,842 105,281 53,273 30,625 31,995 360,019 - 360,019 Inside Group 3,760 3,800 324 37,654 27,797 73,336 (73,336) - Total 142,603 109,081 53,597 68,280 59,793 433,356 (73,336) 360,019 Segment income 28,480 25,920 3,396 2,312 3,253 63,362 (631) 62,731 (Notes) 1. The ¥(631) 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 quarterly consolidated income statements.

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