Kyushu Railway : Summary of Financial Results（339 KB）

About this update from Kyushu Railway Company

(Translation) Consolidated Financial Results for the Year Ended March 31, 2026 (Japanese GAAP) 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 of Ordinary General Meeting of Shareholders: June 23, 2026 Scheduled date of dividend payment commencement: June 24, 2026 Scheduled date of release of annual securities report: June 19, 2026 Preparation of supplementary explanations for financial results: Yes May 11, 2026 Holding of a briefing on 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 Year Ended March 31, 2026 (From April 1, 2025 to March 31, 2026) Consolidated operating results (Percentages show year-on-year changes.) Operating revenues Operating income Ordinary income Net income attributable to owners of the parent Year ended March 31, 2026 Year ended March 31, 2025 Millions of yen 500,393 454,393 % 10.1 8.1 Millions of yen 74,040 58,976 % 25.5 25.2 Millions of yen 74,032 59,571 % 24.3 21.7 Millions of yen 45,468 43,657 % 4.1 13.6 (Note) Comprehensive income: As of March 31, 2026: ¥ 63,355 million [60.5%] As of March 31, 2025: ¥39,479 million [(21.1%)] Net income per share - basic Net income per share - diluted Return on equity Ordinary income to total assets Operating income to operating revenues Year ended March 31, 2026 Year ended March 31, 2025 Yen 295.39 278.96 Yen - - % 9.6 9.7 % 6.3 5.3 % 14.8 13.0 (Reference) Equity in net income (losses) of affiliated companies: As of March 31, 2026: ¥ 231 million As of March 31, 2025: ¥ 56 million Consolidated financial position Total assets Net assets Equity ratio Net assets per share As of March 31, 2026 Millions of yen 1,222,430 Millions of yen 494,870 458,620 % 40.4 Yen 3,210.79 As of March 31, 2025 1,140,509 40.0 2,922.77 (Reference) Shareholders' equity: As of March 31, 2026: ¥493,928 million As of March 31, 2025: ¥456,507 million Consolidated cash flows Net cash provided by operating activities Net cash used in investing activities Net cash provided by (used in) financing activities Cash and cash equivalents , end of year Year ended March 31, 2026 Year ended March 31, 2025 Millions of yen 72,853 96,669 Millions of yen (87,130) (107,410) Millions of yen 12,509 (6,931) Millions of yen 44,257 45,799 Dividends Annual dividends Total dividends (Fiscal) Payout ratio (Consolida ted) Dividends to net assets ratio (Consolida ted) 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 57.50 Yen 98.00 115.00 Millions of yen 15,415 17,784 ％ 35.1 38.9 ％ 3.4 3.8 Year ending March 31, 2027 (Forecast) - 60.50 - 60.50 121.00 36.1 Consolidated Forecasts for the Fiscal Year Ending March 31, 2027 (April 1, 2026 to March 31, 2027) (Percentages show year-on-year changes.) Operating revenues Operating income Ordinary income Net income attributable to owners of the parent Net income per share - basic Full year Millions of yen 520,500 % 4.0 Millions of yen 75,000 % 1.3 Millions of yen 70,900 % (4.2) Millions of yen 51,600 % 13.5 Yen 335.43 Notes Significant changes in the scope of consolidation during the year ended March 31, 2026: Yes Newly added: Three 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 15 of the Attachments 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 As of March 31, 2026 154,649,000 shares As of March 31, 2025 157,301,600 shares As of March 31, 2026 815,134 shares As of March 31, 2025 1,111,485 shares As of March 31, 2026 153,929,077 shares As of March 31, 2025 156,499,059 shares Number of shares issued and outstanding (common stock) i 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) (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) (FY2026/3, 642,000 shares; FY2025/3, 934,600 shares). In addition, the number of shares of the Company's stock held by the Board Benefit Trust (BBT) (FY2026/3, 174,067 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) (FY2026/3, 781,725 shares; FY2025/3, 625,717 shares) are included in the treasury stock that is subtracted in the calculation of the average number of shares during the period. (Reference) Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (April 1, 2025-March 31, 2026) Non-consolidated operating results (Percentages show year-on-year changes.) Operating revenues Operating income Ordinary income Net income Year ended March 31, 2026 Year ended March 31, 2025 Millions of yen 272,939 240,849 ％ 13.3 2.8 Millions of yen 49,405 36,061 ％ 37.0 20.6 Millions of yen 50,249 40,663 ％ 23.6 9.4 Millions of yen 28,760 31,075 ％ (7.4) (5.6) Net income per share - basic Net income per share - diluted Year ended March 31, 2026 Yen 186.84 Yen - Year ended March 31, 2025 198.57 - Non-consolidated financial position Total assets Net assets Equity ratio Net assets per share As of March 31, 2026 As of March 31, 2025 Millions of yen 999,754 941,589 Millions of yen 376,106 364,695 ％ 37.6 38.7 Yen 2,444.89 2,334.95 (Reference) Shareholders' equity: As of March 31, 2026: ¥376,106 million As of March 31, 2025: ¥364,695 million Non-Consolidated Forecasts for the Fiscal Year Ending March 31, 2027 (April 1, 2026-March 31, 2027) (Percentages show year-on-year changes.) Operating revenues Operating income Ordinary income Net income Net income per share - basic Full year Millions of yen 286,100 % 4.8 Millions of yen 48,800 % (1.2) Millions of yen 45,200 % (10.0) Millions of yen 34,800 % 21.0 Yen 226.22 * This summary of 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 materials have been attached to this summary of financial results. A financial results briefing for institutional investors and securities analysts is scheduled to be held on May 12, 2026 (Tuesday). The presentation materials used for this briefing will be posted on TDnet and the Company's website. Contents of Accompanying Materials Qualitative Information on Consolidated Financial Performance 2 Qualitative Information on Consolidated Operating Results 2 Qualitative Information on Consolidated Financial Position 8 Dividend Policies, Dividends in the Fiscal Year Ended March 31, 2026, and Forecast for Dividends in the Fiscal Year Ending March 31, 2027 8 Basic Policies Regarding the Selection of Accounting Standards 9 Consolidated Financial Statements and Major Notes 10 Consolidated Balance Sheets 10 Consolidated Statements of Income and Comprehensive Income 12 Consolidated Statements of Changes in Net Assets 14 Consolidated Statements of Cash Flows 16 Notes to Consolidated Financial Statements 18 (Notes on Going Concern Assumption) 18 (Changes in the Scope of Consolidation or Application of the Equity Method) 18 (Additional Information) 18 (Segment Information) 19 (Per Share Information) 21 (Significant Subsequent Events) 21 Non-Consolidated Financial Statements and Major Notes 22 Non-Consolidated Balance Sheets 22 Non-Consolidated Statements of Income 24 Non-Consolidated Statements of Changes in Net Assets 26 Qualitative Information on Consolidated Financial Performance Forward-looking statements in this document are based on assessments as of the end of the fiscal year ended March 31, 2026. Qualitative Information on Consolidated Operating Results [1] Overview of the fiscal year ended March 31, 2026 During the consolidated fiscal year under review, the Japanese economy continued a modest recovery, with personal consumption showing signs of improvement and the employment and income environment improving. However, due to factors such as rising prices, fluctuations in financial and capital markets, and increasing geopolitical risks, we believe it remains necessary to closely monitor the future economic outlook. Against this backdrop, the JR Kyushu Group advanced under the JR Kyushu Group Medium-Term Business Plan 2025-2027, which was formulated together with the renewal of our corporate philosophy in March 2025. Under this plan, we promoted three key strategies: "realizing sustainable mobility services," "city building through enhanced collaboration among businesses," and "planting seeds for the future." In addition, we focused on four initiatives to strengthen the management base that supports the execution of these strategies: "human capital expansion in light of changes in the labor market," "an integrated approach to environmental issues," "expansion and pursuit of DX utilization," and "Stronger Group governance and establishment of a governance structure that enables appropriate risk-taking." As a result, operating revenue increased 10.1% year on year to ¥500,393 million, operating income grew 25.5% to ¥74,040 million, EBITDA rose 17.4% to ¥112,684 million, ordinary income expanded 24.3% to ¥74,032 million, and net income attributable to owners of the parent increased 4.1% to ¥45,468 million. (Note) EBITDA for the consolidated period under review is the numerical value of operating income plus the cost of depreciation (excluding the cost of depreciation related to lease assets held for the purpose of subleasing). The Group's business performance by segment is as follows. (Millions of Yen) Operating revenue Operating income EBITDA (Note 2) FY2026/3 (April 1, 2025- March 31, 2026) YoY FY2026/3 (April 1, 2025- March 31, 2026) YoY FY2026/3 (April 1, 2025- March 31, 2026) YoY Transportation 190,668 21,330 12.6% 23,976 11,789 96.7% 38,670 13,277 52.3% Real Estate and Hotels 156,694 13,281 9.3% 34,403 2,919 9.3% 52,937 3,328 6.7% Real estate lease 82,951 4,677 6.0% 18,714 499 2.7% 33,436 570 1.7% Real estate sale 39,673 6,774 20.6% 8,346 1,886 29.2% 8,358 1,883 29.1% Hotel 34,069 1,830 5.7% 7,342 533 7.8% 11,141 874 8.5% Retail and Restaurant 71,810 4,737 7.1% 3,873 390 11.2% 5,391 413 8.3% Construction 111,087 10,467 10.4% 7,740 380 5.2% 9,096 449 5.2% Business Services 84,166 1,566 1.9% 5,037 ( 222) (4.2%) 7,999 (525) (6.2%) Total 614,427 51,384 9.1% 75,031 15,257 25.5% 114,094 16,942 17.4% Adjustment (Note 1) (114,034) (5,385) - (991) (194) - (1,409) (213) - Amount on the consolidated financial statements 500,393 45,999 10.1% 74,040 15,063 25.5% 112,684 16,729 17.4% (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) Transportation Group In the railway business, we implemented revisions to fares and charges for the first time in 29 years, excluding revisions attributable to the consumption tax increase. In addition, we implemented various initiatives in the aim of realizing sustainable mobility services. Placing the highest priority on safety, which is the foundation of the JR Kyushu Group, we promoted the "Future Railway Project," which seeks to enhance the sustainability and profitability of railway operations through the use of DX and new technologies. Specifically, we worked on initiatives to further improve safety, sustainability, and profitability, including expanding target areas for automated operation through the full-scale implementation of GoA2.0 on certain sections of the Kagoshima Main Line and the Nippo Main Line in December 2025, as well as advancing the development of a wireless train control system using public telecommunications networks. On the sales and marketing front, we continued to promote initiatives to improve CX (customer experience) from the customer's perspective and link these efforts to top-line growth. These included ongoing efforts to enhance the comfort of the user environment, such as the "HEARTFUL JR KYUSHU" project, a station restroom renovation initiative under the concept of "Restrooms You'll Fall in Love With." In addition, we worked to improve convenience through the further expansion of ticketless services using QR codes* and the provision of other digital services, while also addressing congestion at ticket counters and reducing equipment maintenance costs. We also focused on creating new travel demand through initiatives such as the collaboration project with a popular character, "Super Mario × JR Kyushu - Let's GO KYUSHU!" Furthermore, through the promotion of "Kyushu MaaS" utilizing the MaaS app "my route," we expanded the implementation of digital tickets and strengthened multimodal integration across various regions in Kyushu. By establishing these initiatives as a framework that integrates tourism, events, and regional transportation, we advanced community-based city development centered on mobility services. As a result, operating revenue increased 12.6% year on year to ¥190,668 million, operating income rose 96.7% to ¥23,976 million, and EBITDA grew 52.3% to ¥38,670 million. * QR Code is a registered trademark of DENSO WAVE INCORPORATED. Real Estate and Hotels Group In the real estate leasing business, station building tenant sales remained strong, centered on JR Hakata City Co., Ltd. We also made growth investments by acquiring an office building and a logistics facility. In the real estate sales business, we recorded revenue from the sale of an office building and rental condominiums, as well as from the delivery of units in properties such as "MJR Kumamoto Gate Tower" and "MJR Kagoshima-Chuo Ekimae The Garden" Additionally, we undertook sales activities for newly launched condominiums, including "MJR Akasaka Gate Tower," "MJR Urakami THE ONCE," and "Livio Tower Shinagawa." In the hotel business, amid firm inbound demand, the occupancy remained stable, and we worked to ensure efficient business operations. As a result, operating revenue increased 9.3% year on year to ¥156,694 million, operating income rose 9.3% to ¥34,403 million, and EBITDA grew 6.7% to ¥52,937 million. Retail and Restaurant Group In the retail business, we focused on strengthening competitiveness through the opening of new convenience store locations and the renovation of existing stores. In the restaurant business, we sought to expand revenue by opening new franchise outlets and aimed to drive customer traffic by refreshing menus at our existing restaurants. In addition, JR Kyushu Food Service Inc. entered into a franchise agreement with Soup Stock Tokyo Co., Ltd., and began operating four stores in Fukuoka Prefecture from March of this year. As a result, operating revenue expanded 7.1% year on year to ¥71,810 million, operating income rose 11.2% to ¥3,873 million, and EBITDA increased 8.3% to ¥5,391 million. Construction Group In the construction business, we worked to ensure safe and stable railway transportation through civil engineering, track, architectural work, maintenance operations, and rolling stock and machinery installations related to railway infrastructure. We focused on securing new orders, including public-sector projects such as those related to the Hokkaido Shinkansen, as well as private-sector construction such as condominium developments. In addition, through various initiatives aimed at improving productivity, we secured the necessary construction capacity. Together with continued investment in human resource development, this enabled us to maintain a stable business operating structure. Furthermore, in order to strengthen the BtoB and BtoG businesses and drive further growth for the entire Group, last April we converted Meijikensetsu Co., Ltd. and Showatecs Co., Ltd. into consolidated subsidiaries. As a result, operating revenue increased 10.4% year on year to ¥111,087 million, operating income rose 5.2% to ¥7,740 million, and EBITDA expanded 5.2% to ¥9,096 million. Business Services Group In the construction machinery sales and rental business, we worked to secure earnings through aggressive sales activities. In addition, we worked to win new orders and reduce costs, particularly in the advertising business. In addition, we carried out an organizational restructuring through the merger of JR Kyushu Service Support Co., Ltd. and JR Kyushu Linen Co., Ltd. Through this integration, we strengthened our management base and expanded orders by delivering further service improvements through the integrated provision of cleaning and linen supply services. As a result, operating revenue increased 1.9% year on year to ¥84,166 million, operating income fell 4.2% to ¥5,037 million, and EBITDA declined 6.2% to ¥7,999 million. (Note) Segment EBITDA is the numerical value of operating income for each segment plus the cost of depreciation (before elimination of intersegment transactions, excluding the cost of depreciation related to lease assets held for the purpose of subleasing). (2) Outlook for the Next Fiscal Year In the fiscal year ending March 31, 2027, personal consumption is expected to continue recovering, supported by improvements in the employment and income environment. However, downside risks to the domestic economy remain, including a potential weakening in consumer sentiment due to continued inflation, fluctuations in financial and capital markets, and rising geopolitical risks. Against this backdrop, the Group enters the second year of the JR Kyushu Group Medium-Term Business Plan 2025-2027, a critical phase in its execution. Based on the business performance in the fiscal year ended March 31, 2026, we have revised upward the numerical targets for the final year of the plan, the fiscal year ending March 31, 2028. However, there is no change to our original policy of positioning the plan period as a phase for achieving sustainable growth from a long-term perspective. As a corporate group responsible for transportation infrastructure, we will continue to steadily advance initiatives centered on three key strategies: "realizing sustainable mobility services," "city building through enhanced collaboration among businesses" centered on stations, and "planting seeds for the future," aimed at creating new businesses and strengthening resilience. Performance forecast for the fiscal year ending March 31, 2027 Operating revenue: ¥520.5 billion (up 4.0% year on year) Operating income: ¥75.0 billion (up 1.3%) Ordinary income: ¥70.9 billion (down 4.2%) Net income attributable to owners of the parent: ¥51.6 billion (up 13.5%) EBITDA: ¥116.2 billion (up 3.1%) Also, forecasts by segment for operating revenues, operating income, and EBITDA are as follows. (Millions of Yen) Operating revenues Operating income EBITDA FY 2027/3 (April 1, 2026 - March 31, 2027) YoY FY 2027/3 (April 1, 2026 - March 31, 2027) YoY FY 2027/3 (April 1, 2026 - March 31, 2027) YoY Transportation 193,000 2,331 1.2% 23,800 (176) (0.7%) 40,200 1,529 4.0% Real Estate and Hotels 168,100 11,405 7.3% 34,100 (303) (0.9%) 53,000 62 0.1% Real estate lease 84,100 1,148 1.4% 18,900 185 1.0% 34,200 763 2.3% Real estate sale 48,200 8,526 21.5% 7,400 (946) (11.3%) 7,400 (958) (11.5%) Hotel 35,800 1,730 5.1% 7,800 457 6.2% 11,400 258 2.3% Retail and Restaurant 76,000 4,189 5.8% 4,200 326 8.4% 6,000 608 11.3% Construction 114,000 2,912 2.6% 8,300 559 7.2% 10,000 903 9.9% Business Services 88,500 4,333 5.1% 5,500 462 9.2% 8,300 300 3.8% Total 639,600 25,172 4.1% 75,900 868 1.2% 117,500 3,405 3.0% Adjustment (119,100) (5,065) - (900) 91 - (1,300) 109 - Amount on the consolidated financial statements 520,500 20,106 4.0% 75,000 959 1.3% 116,200 3,515 3.1% Moreover, the performance outlook was prepared based on information available as of the release date of these materials, and there are cases where actual performance differs from outlook figures due to various factors that arise going forward. With regard to the impact of heightened tensions in the Middle East, we recognize increasing risks such as rising crude oil prices and instability in energy supply. However, as it is difficult to reasonably estimate the impact on performance at this time, these factors have not been incorporated into the current performance forecast. (2) Qualitative Information on Consolidated Financial Position Assets, Liabilities, and Net Assets Total assets at the end of the consolidated fiscal year amounted to ¥1,222,430 million, mainly due to an increase in property, plant and equipment. Total liabilities amounted to ¥727,560 million, primarily due to an increase in corporate bonds. Net assets totaled ¥494,870 million, mainly reflecting an increase in retained earnings. Cash Flows (Cash flows from operating activities) Net cash provided by operating activities totaled ¥72,853 million, down ¥23,816 million year on year, due to higher spending on inventory. (Cash flows from investing activities) Net cash used in investing activities was ¥87,130 million, down ¥20,279 year on year, due to a decrease in purchases of fixed assets and other factors. (Cash flows from financing activities) Net cash provided by financing activities was ¥12,509 million (compared with ¥6,931 million used in these activities in the previous fiscal year), due to an increase in proceeds from long-term loans payable. As a result of the above, cash and cash equivalents at end of year decreased ¥1,541 million year on year, to ¥44,257 million. (3) Dividend Policies, Dividends in the Fiscal Year Ended March 31, 2026, and Forecast for Dividends in the Fiscal Year Ending March 31, 2027 The Company views shareholder returns as one of its important management priorities and places importance on providing stable returns over the long term. Over the period to the fiscal year ending March 31, 2028, the Company will implement dividends with a consolidated dividend payout ratio of 35% or higher, while also carrying out share repurchases flexibly, depending on the situation. In accordance with the above policy, the Company plans a year-end dividend of ¥57.50 per share for the fiscal year under review, based on a comprehensive assessment of business performance and other factors. Together with the interim dividend of ¥57.50 per share, this results in an annual dividend of ¥115 per share. The Company also forecasts an annual dividend of ¥121 per share (an interim dividend of ¥60.50 per share and a year-end dividend of ¥60.50 per share) for the fiscal year ending March 31, 2027. The Company's Articles of Incorporation stipulate that an interim dividend may be paid every year with September 30 as the record date, based on a resolution of the Board of Directors. The decision-making authority for dividends from surplus earnings is the Board of Directors for interim dividends and the General Meeting of Shareholders for year-end dividends. Under its corporate philosophy, the Company will allocate retained earnings to maintain and upgrade railway and other facilities and to make growth investments, in order to promote attractive community development through co-creation with local communities by leveraging its comprehensive strengths, centered on mobility services. Basic Policies Regarding the Selection of Accounting Standards The Company employs Japanese generally accepted accounting principles (JGAAP). The Company will examine the possibility of adopting International Financial Reporting Standards (IFRS) in the future based on trends in accounting standards in Japan. Consolidated Financial Statements and Major Notes Consolidated Balance Sheets FY2025/3 (As of March 31, 2025) (Millions of Yen) FY2026/3 (As of March 31, 2026) ASSETS Current assets Cash and time deposits 35,057 36,775 Notes and accounts receivable-trade, and contract assets 58,152 59,968 Fares receivable 3,235 4,297 Securities 11,027 8,199 Merchandise and finished goods 20,533 20,005 Work in process 47,995 70,494 Raw materials and supplies 10,871 12,292 Other 27,371 35,785 Allowance for doubtful accounts (98) (90) Total current assets 214,146 247,728 Non-current assets Property, plant and equipment Buildings and fixtures (net) 410,184 426,483 Machinery, rolling stock and vehicles (net) 77,236 80,948 Land 218,266 222,653 Leased assets (net) 22,058 23,158 Construction in progress 27,182 27,645 Other (net) 11,677 13,504 Total property, plant and equipment 766,606 794,394 Intangible assets 5,427 6,931 Investments and other assets Investment securities 53,217 73,047 Deferred tax assets 41,039 34,850 Net defined benefit assets 1,277 1,878 Other 61,226 66,485 Allowance for doubtful accounts (2,431) (2,886) Total investments and other assets 154,329 173,375 Total non-current assets 926,362 974,701 Total assets 1,140,509 1,222,430 FY2025/3 (As of March 31, 2025) (Millions of Yen) FY2026/3 (As of March 31, 2026) LIABILITIES Current liabilities Notes and accounts payable-trade 32,336 30,659 Short-term loans 2,495 152 Commercial papers 25,000 - Current portion of bonds 5,000 - Current portion of long-term debt 32,065 45,318 Payables 48,268 48,846 Accrued income taxes 9,355 10,935 Fare deposits received with regard to railway connecting services 3,265 3,149 Railway fares received in advance 9,241 8,629 Accrued bonuses 11,276 13,045 Other 34,401 43,868 Total current liabilities 212,706 204,603 Non-current liabilities Corporate bonds 180,000 230,000 Long-term debt 178,760 192,451 Allowance for safety and environmental measures 595 592 Allowance for disaster-damage losses 2,629 3,819 Net defined benefit liabilities 44,324 39,137 Asset retirement obligations 2,875 2,884 Other 59,997 54,071 Total non-current liabilities 469,181 522,956 Total liabilities 681,888 727,560 NET ASSETS Shareholders' equity Common stock 16,000 16,000 Capital surplus 226,063 215,968 Retained earnings 211,021 239,504 Treasury stock (4,311) (3,127) Total shareholders' equity 448,773 468,344 Accumulated other comprehensive income Unrealized gain on available-for-sale securities 8,075 20,457 Foreign currency translation adjustments (178) (234) Remeasurements of defined retirement benefit plans (163) 5,361 Total accumulated other comprehensive income 7,733 25,583 Non-controlling interests 2,113 941 Total net assets 458,620 494,870 TOTAL LIABILITIES AND NET ASSETS 1,140,509 1,222,430 Consolidated Statements of Income and Comprehensive Income Consolidated Income Statements FY2025/3 (Millions of Yen) FY2026/3 (April 1, 2024 - March 31, 2025) (April 1, 2025 - March 31, 2026) OPERATING REVENUES 454,393 500,393 OPERATING EXPENSES Transportation, other services and cost of sales 265,013 287,313 Selling, general and administrative expenses 130,403 139,038 Total operating expenses 395,417 426,352 OPERATING INCOME 58,976 74,040 NON-OPERATING INCOME Interest income 129 240 Dividend income 951 1,166 Gain on assets held in trust 1,603 1,488 Gain on investment securities 848 881 Other 817 1,131 Total non-operating income 4,350 4,909 NON-OPERATING EXPENSES Interest expense 3,196 4,407 Other 559 510 Total non-operating expenses 3,755 4,917 ORDINARY INCOME 59,571 74,032 EXTRAORDINARY GAINS Construction grants received 9,438 4,645 Gain on sale of noncurrent assets 454 2,331 Other 1,101 820 Total extraordinary gains 10,994 7,797 EXTRAORDINARY LOSSES Loss on reduction of noncurrent assets 8,863 4,595 Project withdrawal losses - 9,471 Impairment loss 4,545 3,322 Provision for loss on disaster - 1,199 Disaster-damage losses - 768 Other 926 2,830 Total extraordinary losses 14,336 22,188 INCOME BEFORE INCOME TAXES 56,229 59,641 INCOME TAXES -Current 9,119 14,509 INCOME TAXES -Deferred 3,414 (378) TOTAL INCOME TAXES 12,533 14,131 NET INCOME 43,696 45,510 NET INCOME ATTRIBUTABLE TO NON- 38 41 CONTROLLING INTERESTS NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT 43,657 45,468 Consolidated Comprehensive Income Statements (Millions of Yen) FY2025/3 (April 1, 2024 - March 31, 2025) FY2026/3 (April 1, 2025 - March 31, 2026) NET INCOME 43,696 45,510 OTHER COMPREHENSIVE INCOME Unrealized gain on available-for-sale securities (3,622) 12,372 Foreign currency translation adjustments (81) (56) Remeasurements of defined retirement benefit plans (512) 5,524 Share of other comprehensive income of affiliates accounted for by the equity method (0) 3 Total other comprehensive income (4,216) 17,844 COMPREHENSIVE INCOME 39,479 63,355 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the parent 39,447 63,319 Non-controlling interests 32 36 Consolidated Statements of Changes in Net Assets For the fiscal year ended March 31, 2025 (Millions of Yen) Shareholders' equity Common stock Capital surplus Retained earnings Treasury stock Total Shareholders' equity Balance at beginning of current year 16,000 225,797 188,295 (568) 429,524 Cumulative effects of changes in accounting policies 21 21 Restated balance 16,000 225,797 188,317 (568) 429,546 Changes of items during the year Dividends of surplus (21,943) (21,943) Net income attributable to owners of the parent 43,657 43,657 Purchase of treasury stocks (4,367) (4,367) Disposal of treasury stocks 624 624 Changes in the scope of consolidation 265 990 1,256 Net changes of items other than shareholders' equity Total changes of items during the year 265 22,704 (3,742) 19,227 Balance at end of current year 16,000 226,063 211,021 （4,311） 448,773 Accumulated other comprehensive income Non-controlling interests Total net assets Valuation difference on available-for-sale securities Foreign currency translation adjustments Remeasuremen ts of defined benefit plans Total accumulated other comprehensive income Balance at beginning of current year 11,651 (97) 348 11,903 859 442,287 Cumulative effects of changes in accounting policies (21) (21) - Restated balance 11,630 (97) 348 11,881 859 442,287 Changes of items during the year Dividends of surplus (21,943) Net income attributable to owners of the parent 43,657 Purchase of treasury stocks (4,367) Disposal of treasury stocks 624 Changes in the scope of consolidation 1,256 Net changes of items other than shareholders' equity (3,554) (81) (512) (4,147) 1,253 (2,894) Total changes of items during the year (3,554) (81) (512) (4,147) 1,253 16,333 Balance at end of current year 8,075 (178) (163) 7,733 2,113 458,620 For the fiscal year ended March 31, 2026 (Millions of Yen) Shareholders' equity Common stock Capital surplus Retained earnings Treasury stock Total Shareholders' equity Balance at beginning of current year 16,000 226,063 211,021 (4,311) 448,773 Changes of items during the year Dividends of surplus (16,993) (16,993) Net income attributable to owners of the parent 45,468 45,468 Purchase of treasury stocks (10,000) (10,000) Disposal of treasury stocks 1,183 1,183 Cancellation of treasury stocks (9,999) 9,999 - Changes in the scope of consolidation (94) 7 (87) Net changes of items other than shareholders' equity Total changes of items during the year - (10,094) 28,482 1,183 19,571 Balance at end of current year 16,000 215,968 239,504 (3,127) 468,344 Accumulated other comprehensive income Non-controlling interests Total net assets Valuation difference on available-for-sale securities Foreign currency translation adjustments Remeasureme nts of defined benefit plans Total accumulated other comprehensiv e income Balance at beginning of current year 8,075 (178) (163) 7,733 2,113 458,620 Changes of items during the year Dividends of surplus (16,993) Net income attributable to owners of the parent 45,468 Purchase of treasury stocks (10,000) Disposal of treasury stocks 1,183 Cancellation of treasury stocks - Changes in the scope of consolidation (87) Net changes of items other than shareholders' equity 12,381 (56) 5,524 17,850 (1,172) 16,678 Total changes of items during the year 12,381 (56) 5,524 17,850 (1,172) 36,249 Balance at end of current year 20,457 (234) 5,361 25,583 941 494,870 Consolidated Statements of Cash Flows (Millions of Yen) FY2025/3 (April 1, 2024 - March 31, 2025) FY2026/3 (April 1, 2025 - March 31, 2026) CASH FLOWS FROM OPERATING ACTIVITIES Income before income taxes 56,229 59,641 Depreciation costs 38,410 40,232 Losses from provision for cost reduction of fixed assets 8,863 4,595 Project withdrawal losses - 9,471 Impairment loss 4,545 3,322 Provision for loss on disaster - 1,199 Disaster-damage losses - 768 Net change in allowance for doubtful accounts 305 447 Net change in net defined benefit liabilities 2,383 2,260 Increase (Decrease) in allowance for safety and environmental measures (50) (3) Interest and dividend income (1,080) (1,407) Interest expense 3,196 4,407 Construction grants received (9,438) (4,645) Gain on assets held in trust (1,603) (1,488) Gain on investment securities (848) (881) (Increase) Decrease in trade receivables 4,394 (2,411) (Increase) Decrease in inventories (6,450) (14,613) Increase (Decrease) in trade payables 6,100 (2,511) Gain on sale of fixed assets (454) (2,331) Other (6,360) (7,783) Subtotal 98,141 88,269 Interest and dividends income received 1,019 1,305 Interest expense paid (2,741) (3,757) Gain on assets held in trust received 1,604 1,482 Loss on disaster paid (995) (505) Income taxes paid (357) (13,941) Net cash provided by operating activities 96,669 72,853 FY2025/3 (April 1, 2024 - March 31, 2025) (Millions of Yen) FY2026/3 (April 1, 2025 - March 31, 2026) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property, plant and equipment, and Intangible assets (112,916) (85,911) Proceeds from sale of property, plant and equipment, and intangible assets 749 2,699 Purchases of investment securities (4,516) (7,724) Proceeds from construction grants 7,188 4,720 Other 2,085 (915) Net cash provided by (used in) investing activities (107,410) (87,130) CASH FLOWS FROM FINANCING ACTIVITIES Net increase (decrease) in short-term loans payable (2,254) (2,297) Net increase (decrease) in commercial papers (15,000) (25,000) Proceeds from long-term loans payable 36,769 58,483 Repayment of long-term loans payable (28,988) (33,046) Payments for long-term accounts payable (134) - Proceeds from issuance of corporate bonds 40,000 50,000 Payments for redemption of corporate bonds (10,255) (5,000) Proceeds from lease and guarantee deposits received 2,146 2,154 Repayments of lease and guarantee deposits received (1,027) (1,065) Cash dividends paid (21,943) (16,993) Payments from changes in ownership interests in subsidiaries that do not result in change in scope of - (2,133) consolidation Purchase of treasury stocks (4,367) (10,000) Proceeds from sales of treasury stocks 624 1,183 Other (2,501) (3,775) Net cash used in financing activities (6,931) 12,509 Effect of exchange rate change on cash and cash equivalents 148 32 Net increase (decrease) in cash and cash equivalents (17,523) (1,735) Cash and cash equivalents, beginning of year 61,907 45,799 Increase in cash and cash equivalents from newly 1,416 193 consolidated subsidiaries Cash and cash equivalents, end of year 45,799 44,257 Notes to Consolidated Financial Statements (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 fiscal year under review due to their increased materiality. JR Kyushu Real Estate Development US LLC has been newly established and has been included in the scope of consolidation from the fiscal year under review. JR Kyushu Linen Co., Ltd. has been excluded from the scope of consolidation from the fiscal year under review following its absorption-type merger into JR Kyushu Service Support Co., Ltd., the surviving company. (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 fiscal year under review have been recorded under "loss on disaster." Additionally, estimated costs expected to be incurred in or after the following fiscal year have been reasonably calculated and recorded as "provision for loss on disaster" under extraordinary losses in the consolidated statement of income for the fiscal year under review. (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 fiscal year under review, "treasury stock" and "capital surplus" under net assets in the consolidated balance sheet each decreased by ¥9,999 million. (Segment Information) Outline of Reportable Segments The reportable segments the Company reports are the business units for which the Company is able to obtain respective financial information separately in order for the Board of Directors, etc., to regularly evaluate how to allocate resources and assess their business performance. The Company primarily engages in the railway business and has five reportable segments: Transportation, Real Estate and Hotels, Retail and Restaurant, Construction, and Business Services. The Transportation segment conducts the railway and bus businesses. The Real Estate and Hotels segment leases station buildings and other real estate, sells condominiums and other properties, and conducts hotel operations, etc. The Retail and Restaurant segment engages in retail, restaurant, and agriculture businesses. The Construction segment performs construction, vehicle equipment- and machinery-related operations, electrical work, and construction consulting. The Business Services segment engages in construction machinery sales and rental, wholesaling, cleaning, advertising, system-related, and other businesses. Methods for Calculating Sales, Income and Losses, Assets, and Other Items by Reportable Segment The accounting methods used for reportable segments are generally the same as those contained in "Significant matters that serve as the basis for preparing consolidated financial statements." Inter-segment internal revenue and transfers are based on market prices, etc. Figures for reportable segment profit are on an operating income basis. Information on Sales, Income and Losses, Assets, and Other Items by Reportable Segment For the fiscal year ended March 31, 2025 (April 1, 2024 - March 31, 2025) (Millions of yen) Reportable Segments Total Adjustment (Note 1) Amount on the consolidate d financial statements (Note 2) Transportatio n Real Estate and Hotels Retail and Restaurant Construction Business Services Operating Revenues Outside Customers Inside Group 164,347 4,989 138,388 5,024 66,683 389 43,070 57,549 41,904 40,695 454,393 108,648 - (108,648) 454,393 - Total 169,337 143,412 67,072 100,619 82,599 563,042 (108,648) 454,393 Segment income (loss) 12,186 31,483 3,482 7,360 5,260 59,773 (796) 58,976 Segment assets 283,837 661,431 37,394 89,013 122,691 1,194,368 (53,859) 1,140,509 Other items Depreciation costs 13,206 18,125 1,495 1,286 4,696 38,810 (399) 38,410 Increase in property, plant and equipment and intangible assets 24,288 65,439 3,285 2,989 10,053 106,057 (684) 105,372 (Notes) 1. The following adjustments have been made. The ¥(796) million adjustment to segment income reflects the elimination of intersegment transactions. The ¥(53,859) million adjustment to segment assets includes a downward adjustment of ¥(159,270) million in reflection of the elimination of intersegment receivables and payables, and ¥105,410 million in corporate assets not allocated to segments. The ¥(399) million adjustment to depreciation costs reflects the elimination of intersegment transactions. The ¥(684) million adjustment to increase in fixed assets reflects the elimination of intersegment transactions. 2. Segment income has been adjusted for the operating income figure in the consolidated income statements. For the fiscal year ended March 31, 2026 (April 1, 2025 - March 31, 2026) (Millions of yen) Reportable Segments Total Adjustment (Note 1) Amount on the consolidate d financial statements (Note 2) Transportatio n Real Estate and Hotels Retail and Restaurant Construction Business Services Operating Revenues Outside Customers Inside Group 185,724 4,944 151,518 5,175 71,382 427 48,111 62,975 43,655 40,510 500,393 114,034 - (114,034) 500,393 - Total 190,668 156,694 71,810 111,087 84,166 614,427 (114,034) 500,393 Segment income 23,976 34,403 3,873 7,740 5,037 75,031 (991) 74,040 Segment assets 293,219 694,695 41,891 98,895 127,926 1,256,627 (34,197) 1,222,430 Other items Depreciation costs 14,693 18,534 1,517 1,355 4,549 40,651 (418) 40,232 Increase in property, plant and equipment and intangible assets 29,038 39,089 4,526 2,720 10,321 85,697 186 85,884 (Notes) 1. The following adjustments have been made. The ¥(991) million adjustment to segment income reflects the elimination of intersegment transactions. The ¥(34,197) million adjustment to segment assets includes a downward adjustment of ¥(150,511) million in reflection of the elimination of intersegment receivables and payables, and ¥116,314 million in corporate assets not allocated to segments. The ¥(418) million adjustment to depreciation costs reflects the elimination of intersegment transactions. The ¥(186) million adjustment to increase in fixed assets reflects the elimination of intersegment transactions. 2. Segment income has been adjusted for the operating income figure in the consolidated income statements. (Per Share Information) Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2026 Net assets per share ￥2,922.77 ￥3,210.79 Net income per share ￥278.96 ￥295.39 (Notes) 1. Earnings per share-diluted is not shown because no dilutive shares existed. In calculating net assets per share, the Company's shares in the Board Benefit Trust (BBT), which are recorded as treasury stock in the equity section, are included in the treasury stock that is subtracted from the total number of shares issued at the end of the period (FY2025/3: 1,111,200 shares; FY2026/3: 814,800 shares). In addition, in calculating net income per share, these shares are included in the treasury stock that is subtracted in the calculation of the average number of shares during the period (FY2025/3: 802,317 shares; FY2026/3: 955,792 shares). The following is the basis for calculating net assets per share. Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2026 Total net assets (millions of yen) 458,620 494,870 Amount deducted from total net assets (millions of yen) 2,113 941 [Included non-controlling interests (millions of yen)] (2,113) (941) Net assets at end of year relating to common stock (millions of yen) 456,507 493,928 Amount of common stock at end of year used for calculating net assets per share (shares) 156,190,115 153,833,866 The following is the basis for calculating net income per share. Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2026 Net income attributable to owners of the parent (millions of yen) 43,657 45,468 Amount not belonging to ordinary shareholders (millions of yen) - - Net income attributable to common stock owners of the parent (millions of yen) 43,657 45,468 Weighted-average numbers of ordinary shares (shares) 156,499,059 153,929,077 (Significant Subsequent Events) None Non-Consolidated Financial Statements and Major Notes Non-Consolidated Balance Sheets FY2025/3 (As of March 31, 2025) (Millions of Yen) FY2026/3 (As of March 31, 2026) ASSETS Current assets Cash and time deposits 17,284 16,805 Fares receivable 3,115 4,176 Accounts receivable-trade 35,269 40,977 Securities 11,127 8,000 Real estate for sale 10,524 11,232 Real estate for sale in process 44,037 65,379 Supplies 10,079 11,426 Other 5,073 11,332 Allowance for doubtful accounts (5) (4) Total current assets 136,506 169,326 Non-current assets Fixed assets for railway business Property, plant and equipment 762,755 777,731 Accumulated depreciation (599,757) (604,370) Property, plant and equipment (net) 162,998 173,361 Intangible assets 1,759 1,889 Net fixed assets for railway operations 164,757 175,251 Fixed assets for other business Property, plant and equipment 524,788 550,136 Accumulated depreciation (86,387) (97,466) Property, plant and equipment (net) 438,401 452,670 Intangible assets 305 241 Net fixed assets for other business 438,706 452,911 Fixed assets relating to both businesses Property, plant and equipment 30,349 30,008 Accumulated depreciation (14,381) (14,913) Property, plant and equipment (net) 15,967 15,094 Intangible assets 38 120 Net fixed assets relating to both businesses 16,005 15,215 Construction in progress Railway business 9,974 11,417 Other business 6,883 10,017 Relating to both businesses 317 944 Total construction in progress 17,175 22,379 Investments and other assets Investment securities 36,106 48,483 Stocks of subsidiaries and affiliated companies 37,073 26,392 Long-term prepaid expenses 12,932 14,294 Deferred tax assets 32,548 31,601 Other 59,032 52,816 Allowance for doubtful accounts (9,253) (8,918) Total investments and other assets 168,438 164,670 Total noncurrent assets 805,083 830,427 Total assets 941,589 999,754 FY2025/3 (As of March 31, 2025) (Millions of Yen) FY2026/3 (As of March 31, 2026) LIABILITIES Current liabilities Short-term loans 5,000 - Commercial papers 25,000 - Current portion of corporate bonds 5,000 - Current portion of long-term debt 24,242 32,184 Payables 70,999 72,919 Accrued income taxes 3,717 6,481 Fare deposits received with regard to railway connecting services 3,265 3,149 Deposits received 4,968 2,490 Railway fares received in advance 9,241 8,629 Advances received 8,608 8,170 Accrued bonuses 6,137 7,254 Other 6,710 8,452 Total current liabilities 172,890 149,732 Non-current liabilities Corporate bonds 180,000 230,000 Long-term debt 165,994 181,176 Employees' severance and retirement benefits 37,814 40,011 Allowance for safety and environmental measures 595 592 Allowance for disaster-damage losses 2,629 3,819 Provision for guarantee obligations 4,182 4,788 Asset retirement obligations 1,878 1,885 Other 10,909 11,640 Total noncurrent liabilities 404,003 473,915 Total liabilities 576,893 623,647 NET ASSETS Shareholders' equity Common stock 16,000 16,000 Capital surplus Capital surplus 171,908 171,908 Other 52,113 42,113 Total capital surplus 224,022 214,022 Retained earnings Other Reserve for deferred gain of fixed assets 11,253 11,253 Retained earnings carried forward 113,187 124,955 Total retained earnings 124,441 136,209 Treasury stock (4,311) (3,127) Total shareholders' equity 360,152 363,103 Valuation and translation adjustment Valuation difference on available-for-sale securities 4,543 13,002 Net valuation and translation adjustment 4,543 13,002 Total net assets 364,695 376,106 TOTAL LIABILITIES AND NET ASSETS 941,589 999,754 Non-Consolidated Statements of Income FY2025/3 (April 1, 2024 - March 31, 2025) (Millions of Yen) FY2026/3 (April 1, 2025 - March 31, 2026) RAILWAY BUSINESS Operating revenues Income from railway passenger traffic 151,248 172,604 Trackage revenue 506 547 Miscellaneous income of transportation 15,301 15,719 Total operating revenues 167,056 188,871 Operating expenses Transportation expenses 119,896 128,434 General and administrative expenses 13,923 14,766 Taxes 8,027 8,292 Depreciation costs 11,806 13,091 Total operating expenses 153,653 164,585 Operating Income 13,402 24,285 OTHER BUSINESSES Operating revenues Revenue from real estate sale 30,361 37,586 Revenue from real estate lease 39,085 41,600 Other 4,345 4,880 Total operating revenues 73,792 84,068 Operating expenses Cost of sales 33,045 39,839 Selling, general and administrative expenses 1,283 1,398 Taxes 5,422 5,766 Depreciation costs 11,383 11,945 Total operating expenses 51,134 58,948 Operating income 22,658 25,119 TOTAL OPERATING INCOME 36,061 49,405 NON-OPERATING INCOME Interest income 88 117 Dividend income 642 745 Gain on assets held in trust 1,603 1,488 Gain on investment securities 847 881 Reversal of provision for loss on guarantees, etc. 3,452 666 Other 615 706 Total non-operating income 7,250 4,606 NON-OPERATING EXPENSES Interest expense 2,144 3,318 Other 503 443 Total non-operating expenses 2,647 3,762 ORDINARY INCOME 40,663 50,249 (Millions of Yen) FY2025/3 (April 1, 2024 - March 31, 2025) FY2026/3 (April 1, 2025 - March 31, 2026) EXTRAORDINARY GAINS Construction grants received 9,313 4,627 Reversal of allowance for doubtful accounts - 828 Other 1,130 889 Total extraordinary gains 10,444 6,345 EXTRAORDINARY LOSSES Loss on reduction of noncurrent assets 8,739 4,576 Project withdrawal losses - 9,649 Impairment loss 2,641 2,172 Provision for loss on disaster - 1,199 Disaster-damage losses - 754 Loss on valuation of subsidiaries and affiliates 1,497 - Other 712 2,568 TOTAL EXTRAORDINARY LOSSES 13,590 20,921 INCOME BEFORE INCOME TAXES 37,516 35,673 INCOME TAXES -Current 2,647 8,215 INCOME TAXES -Deferred 3,793 (1,303) TOTAL INCOME TAXES 6,441 6,912 NET INCOME 31,075 28,760 Non-Consolidated Statements of Changes in Net Assets For the fiscal year ended March 31, 2025 (Millions of Yen) Shareholders' equity Common stock Capital surplus Retained earnings Additional paid-in capital Other capital surplus Total capital surplus Other retained earnings Total retained earnings Provision of reserve for deferred gain of fixed assets Retained earnings carried forward Balance at beginning of current year 16,000 171,908 52,113 224,022 11,171 104,137 115,309 Changes of items during the year Dividends of surplus (21,943) (21,943) Net income 31,075 31,075 Provision of reserve for deferred gain of fixed assets 226 (226) - Reversal of reserve for deferred gain of fixed assets (144) 144 - Purchase of treasury stocks Disposal of treasury stocks Net changes of items other than shareholders' equity Total changes of items during the year - - - - 82 9,049 9,132 Balance at end of current year 16,000 171,908 52,113 224,022 11,253 113,187 124,441 Shareholders' equity Valuation and translation adjustments Total net assets Treasury stock Total shareholders' equity Net unrealized holding gains (losses) on securities Balance at beginning of current year (568) 354,762 8,443 363,206 Changes of items during the year Dividends of surplus (21,943) (21,943) Net income 31,075 31,075 Provision of reserve for deferred gain of fixed assets - - Reversal of reserve for deferred gain of fixed assets - - Purchase of treasury stocks (4,367) (4,367) (4,367) Disposal of treasury stocks 624 624 624 Net changes of items other than shareholders' equity (3,900) (3,900) Total changes of items during the year (3,742) 5,389 (3,900) 1,489 Balance at end of current year (4,311) 360,152 4,543 364,695 For the fiscal year ended March 31, 2026 (Millions of Yen) Shareholders' equity Common stock Capital surplus Retained earnings Additional paid-in capital Other capital surplus Total capital surplus Other retained earnings Total retained earnings Provision of reserve for deferred gain of fixed assets Retained earnings carried forward Balance at beginning of current year 16,000 171,908 52,113 224,022 11,253 113,187 124,441 Changes of items during the year Dividends of surplus (16,993) (16,993) Net income 28,760 28,760 Purchase of treasury stocks Disposal of treasury stocks Cancellation of treasury stocks (9,999) (9,999) Net changes of items other than shareholders' equity Total changes of items during the year - - (9,999) (9,999) - 11,767 11,767 Balance at end of current year 16,000 171,908 42,113 214,022 11,253 124,955 136,209 Shareholders' equity Valuation and translation adjustments Total net assets Treasury stock Total shareholders' equity Net unrealized holding gains (losses) on securities Balance at beginning of current year (4,311) 360,152 4,543 364,695 Changes of items during the year Dividends of surplus (16,993) (16,993) Net income 28,760 28,760 Purchase of treasury stocks (10,000) (10,000) (10,000) Disposal of treasury stocks 1,183 1,183 1,183 Cancellation of treasury stocks 9,999 - - Net changes of items other than shareholders' equity 8,459 8,459 Total changes of items during the year 1,183 2,951 8,459 11,410 Balance at end of current year (3,127) 363,103 13,002 376,106

View stock analysis, news, and events for Kyushu Railway Company