TOHOKU ELECTRIC POWER CO., INC.
April 30, 2026
Financial Results for Fiscal Year ending March 31, 2026 (FY2025), and Financial and Dividend Forecasts for Fiscal Year ending March 31, 2027 (FY2026)
Tohoku Electric Power Co., Inc. released its financial results for FY2025 (April 1, 2025 through March 31, 2026), and financial and dividend forecasts for FY2026 (April 1, 2026 through March 31, 2027) today.
【Consolidated Financial Results for FY2025】
Total electricity sales volume increased to 78.9 TWh (1.1% increase year-on-year), as our wholesale electricity sales increased as a result of higher sales outside our main service area, although our retail electricity sales declined due to contract switching amid intensifying competition.
Operating revenue amounted to 2,372.4 billion yen, a decrease of 272.4 billion yen (10.3%) compared to the previous fiscal year, mainly due to the decline in retail electricity sales volume.
Despite improved earnings from the restart of Onagawa Nuclear Power Station Unit 2, ordinary income amounted to 126.4 billion yen, representing a year-on-year decrease of 130.3 billion yen (50.8%), due to lower earnings resulting from changes in market and sales conditions, increased supply-demand balancing costs in the transmission and distribution business, and the market valuation impact of forward power contracts and others, caused by a sharp rise in fuel and wholesale electricity prices amid the worsening situation in the Middle East.
Net income attributable to owners of the parent was 84.9 billion yen, a decrease of 97.8 billion yen or 53.5% from the previous fiscal year, mainly due to the recording of valuation losses on securities as extraordinary losses.
Note: The market valuation impact of forward power contracts and others
In order to mitigate fuel price volatility risks and secure stable earnings for electricity sales in FY2026, we conduct fuel and electricity trading through our trading subsidiary.
These transactions include forward power contracts, in which electricity prices are fixed in advance and are therefore subject to market valuation under the accounting standards. In FY2025, a portion of these transactions recorded significant valuation impact due to the sharp increase in fuel prices and electricity market prices associated with the worsening geopolitical situation in the Middle East.
These market valuation impacts are expected to be reversed and recognized as gains in FY2026; therefore, there is no net earnings impact on a cumulative basis over FY2025 and FY2026.
In addition, these valuation gains and losses are non-cash items and do not affect consolidated cash flows.
【Year-End Dividend for FY2025】
The year-end dividend for FY2025 will be 20 yen per share, as previously forecasted in April last year, after considering our financial results and financial condition.
The dividend will formally be resolved at the 102nd Annual General Meeting of Shareholders, scheduled to be held on June 25, 2026.
【Financial Forecast for FY2026】
Due to the highly uncertain outlook for fuel prices and other factors amid the worsening situation in the Middle East, it is currently difficult to reasonably estimate earnings for FY2026. Accordingly, the earnings forecast for FY2026 has been undetermined at this time.
We will promptly disclose our earnings forecast once the geopolitical situation and fuel prices stabilize to an extent that allows for a reasonable projection.
【Dividend Forecast for FY2026】
Our basic policy is to provide stable dividends, taking into comprehensive consideration factors such as annual performance and medium- to long-term earnings prospects.
In addition, from FY2024 onward, we have adopted a policy of determining shareholder returns while maintaining a balance with the recovery of its financial base, using a Dividend on Equity (DOE) ratio of approximately 2% as a guideline.
Even though the FY2026 earnings forecast remains undetermined, in order to ensure predictability for shareholders, we expect to pay dividends at a level considered distributable at this time, taking into account a 2% DOE based on shareholders' equity as of the end of FY2025.
As a result, we plan to set both the interim and year-end dividends for FY2026 at 20 yen per share each.
1Key points of financial results and forecas ts
Financial Results for FY2025Operating revenue ¥2,372.4 billion (YoY decline of ¥272.4 billion)
Ordinary income ¥126.4 billion (YoY decline of ¥130.3 billion)
Net Income Attributable to Owners of Parent
¥84.9 billion (YoY decline of ¥97.8 billion)
Financial Forecasts for FY2026 Dividend Forecasts for FY2026Summary of Financial Results 2
Operating Revenue ¥2,372.4 billion (YoY decline of ¥272.4 billion)
… Operating revenue declined mainly due to lower retail electricity sales.
Ordinary Income ¥126.4 billion (YoY decline of ¥130.3 billion)
... Although there were positive factors, such as the restart of Onagawa Unit 2, ordinary income declined due to changes in the market and sales environment, increase of power supply-demand balancing costs in the transmission and distribution business, and the market valuation impact of forward power contracts and others, driven by a sharp rise in fuel prices and electricity market prices amid rising tensions in the Middle East.
Net Income Attributable to Owners of Parent
¥84.9 billion (YoY decline of ¥97.8 billion)
【Summary of Consolidated Financial Statements】
(¥ billion)
FY2024
FY2025
Change
Change
(A)
(B)
(B) - (A)
(B) / (A)
Operating Revenue
2,644.9
2,372.4
(272.4)
89.7 %
Ordinary Income *1
256.7
126.4
(130.3)
49.2 %
[234.7]
[165.9]
[(68.7)]
[70.7 %]
Net Income Attributable to
Owners of Parent
182.8
84.9
(97.8)
46.5 %
Mar. 31, 2025
(A)
Mar. 31, 2026
(B)
Change
(B) - (A)
Equity ratio
(After considering hybrid bonds *2)
18.3%
(20.8%)
19.4%
(21.8%)
1.1%
(1.0%)
Interest-Bearing Liabilities
3,336.9
3,479.1
142.2
*1 Lower figures in [ ] exclude the time-lag effect of the fuel cost adjustment (FY2025 figure also excludes the market valuation impact of the
forward power contracts.)
*2 Equity ratio assuming 50% of the issued amount (¥140 billions) of the issued hybrid bonds as equity capital
3 Changing Factors in Consolidated Ordinary Income from the Corresponding Period Last YearAlthough there were positive factors, such as the restart of Onagawa Unit 2, ordinary income declined due to changes in the market and sales environment, increase of power supply-demand balancing costs in the transmission and distribution business, and the market valuation impact of forward power contracts and others, driven by a sharp rise in fuel prices and electricity market prices amid rising tensions in the Middle East.
The market valuation impact reported in FY2025 will be reversed as a gain in FY2026, resulting in no impact on earnings on a cumulative two-year basis.
Consolidated ordinary income was ¥126.4 billion, down ¥130.3 billion YoY. (¥165.9 billion was reported as excluding the time-lag effect of the fuel cost adjustment and the market valuation impact, down ¥68.7 billion YoY.)
(¥ billion)
256.7
30.0 (42.0)
Fuel cost
adjustment lag
22.0
Restart operation
(21.4)
182.9
Reversal at the beginning of FY2026
(+56.5 to be recorded in FY2026)
Ordinary income, excluding the
Market
of Onagawa Unit 2 (Reduction in fuel costs)
Changes in the
market and sales
environment Distribution and
transmission
(35.4) (5.0)
market valuation
Fuel cost
adjustment lag
17.0
impact
valuation impact
business Others
Diff in the time-lag effect of the fuel cost adjustment
FY2025 +17.0
FY2024 +22.0
(Decline in marginal profit)
(56.5)
126.4
Fuel cost
adjustment lag
17.0
*See the page 5 for details
FY2024
Ordinary income, excluding the fuel cost adjustment lag
234.7
YoY decline of ¥68.7 billion,
excluding the fuel cost adjustment lag and the market valuation impact
Ordinary income, excluding the fuel cost adjustment lag and the market valuation impact
FY2025
165.9