FY2025 Third Quarter (April 2025 to December 2025) Supplementary Financial Explanation Materials

Performance Overview

Consolidated operating revenue for the third quarter of FY2025 reached JPY 343.6 billion, up 8.5% year-over-year, operating income was JPY 22.7 billion, an increase of 5.9%, and quarterly net income attributable to owners of the parent set a new record at JPY 27.8 billion. The primary drivers of revenue growth were increased condominium sales in the housing business under the real estate segment, the opening of the "ONE FUKUOKA BLDG." in the rental business, and growth in export-import volume in the international logistics operations of the logistics segment. Conversely, the bus and railway businesses experienced profit declines due to rising expenses. Improvements in equity-method investment income and gains on fixed asset sales contributed positively to profit growth.

Segment Performance and Outlook

The transportation segment reported operating revenue of JPY 62.763 billion (up 2.6% YoY) but operating income decreased by 42.7% YoY to JPY 2.856 billion. Passenger recovery in railway operations and increased inbound tourism contributed to revenue growth; however, increased personnel expenses led to profit decline. The real estate segment performed strongly with operating revenue of JPY 66.191 billion (up 19.6% YoY) and operating income of JPY 9.344 billion (up 36.1%), supported mainly by increased condominium sales. The logistics segment saw a significant profit increase with operating revenue of JPY 110.404 billion (up 5.1% YoY) and operating income of JPY 3.979 billion (up 61.0%). The leisure and service segment experienced increased revenue but decreased profit due to higher costs. The full-year FY2025 earnings forecast projects operating revenue of JPY 472.7 billion (down JPY 3.8 billion from previous forecast), operating income of JPY 28.2 billion (up JPY 1.5 billion), and net income attributable to owners of the parent at JPY 31.0 billion (up JPY 10.2 billion).