JR East: Raises FY2027 operating profit forecast, dividend to ¥88

JR East raised its forecasts for FY2027 revenue, operating profit, ordinary profit and net income from its previous projections. The previous forecast, new forecast and prior-year results are shown below.

• Increase from previous forecast: Revenue rises by ¥63 billion, operating profit by ¥21 billion, ordinary profit by ¥25 billion and net income by ¥10 billion.
• Earnings per share: ¥234.75, above the previous forecast of ¥225.85 and the prior-year result of ¥219.42.

JR East cited higher railway transportation revenue and other factors for the revision. Compared with the prior year, revenue is now forecast to rise from ¥3.0847 trillion to ¥3.358 trillion, while operating profit is expected to increase from ¥414.3 billion to ¥450 billion.

JR East raised its interim dividend from the previous forecast of ¥42 a share to ¥44, and increased its year-end dividend forecast from ¥42 to ¥44. The full-year payout is now projected at ¥88, up from the previous forecast of ¥84.

The record date for the newly set interim dividend is Sept. 30, 2026, and the total payout is ¥49.8 billion. The payment takes effect on Dec. 1, 2026. The planned annual dividend is ¥14 higher than the prior-year result, with JR East citing its earnings and other factors in its decision to raise the payout.

In line with its shareholder return policy, JR East is increasing both the interim and year-end dividends for FY2027. The company says it aims to raise its dividend payout ratio gradually to 40% as growth investment settles down in fiscal 2027.

• Dividend policy: Gradually raise the payout ratio to 40% under the group's management vision, “Yusho 2034.”
• Share buybacks: Conduct repurchases flexibly as part of shareholder returns.

JR East said the dividend revisions reflect its return policy and consolidated earnings, among other factors. If the revised earnings outlook is achieved, both profit and dividends will increase.