Odakyu Electric Railway Co.,Ltd.
9007・Prime Market・Land Transportation
Business
Odakyu Electric Railway is a group company (51 subsidiaries and 17 affiliates) built around a railway network (120.5km of operating track) connecting Shinjuku with Odawara, Hakone, and Enoshima, and it operates a Transportation Business encompassing bus, taxi, ropeway, and other services, a Real Estate Business covering property sales, leasing, and commercial facility operation, and a Lifestyle Services Business including department stores, supermarkets, hotels, and restaurants. Under its management vision of becoming a "region-value-creating company" that captures demand ranging from the daily lives of residents along its rail lines to tourism and inbound visitors, it operates its businesses centered on three major hubs: Shinjuku, Hakone, and Shonan. Consolidated operating revenue for FY2025 (ended March 2025) was ¥422,700 million.
Business Model
A structure built on stable passenger revenue from railway transportation (total passenger transportation revenue of ¥115,309 million), layering on commercial facility and office leasing revenue along the line, condominium and detached house sales revenue, and consumption-related revenue from department stores, supermarkets, hotels, and other businesses. The complementary relationship, in which the railway attracts customers to areas along the line and line-side development in turn increases railway ridership, underpins the stability of earnings. Efforts are also underway to convert inbound demand into tourism revenue through the MaaS App "EMot" and collaboration with Klook.
Company Strengths
Centered on a 120.5km railway network, ridership in FY2025 (ended March 2025) totaled 698,871 thousand passengers (up 2.2% year on year). With operating revenue of ¥174,927 million in the Transportation Business, ¥95,897 million in the Real Estate Business, and ¥168,695 million in the Lifestyle Services Business, the diverse businesses rooted along the railway line mutually complement each other in customer attraction and revenue generation, forming a stable earnings base.
The Shinjuku Station West Exit District Development Plan, being jointly promoted with Tokyo Metro Co., Ltd. and Tokyu Land Corporation, is underway. Construction of a new building and demolition work are being carried out on the site of the former main building of Odakyu Department Store's Shinjuku store, and upon completion, expansion of rental income from state-of-the-art high-grade office and commercial functions is expected. The project is positioned as a core initiative for achieving the Real Estate Business's FY2030 operating income target of ¥30.0 billion.
The company's railway line encompasses some of Japan's leading tourist destinations, including Hakone (ropeways, ferries, hotels, etc.) and Shonan (Enoshima Electric Railway, etc.), and in September 2024 launched a Klook-linked digital ticketing service through the MaaS App "EMot". With targets of ¥120.0 billion in tourism revenue and ¥15.0 billion in operating income for FY2030, concrete measures to capture inbound demand are underway.
ENVALITH's Perspective
Performance Trend
From FY2022 to FY2025 (ending March 2025), revenue continued to grow, rising from ¥358,753 million to ¥422,700 million, but in FY2026 (ending March 2026) it turned to a slight decline, coming in at ¥418,732 million (down 0.9% year on year). The main cause was the reversal of the prior period's effect, in which the Department Store Business and Store Business consolidated results over 13 months due to the application of the group-wide fiscal period alignment system. Operating income maintained stable growth at ¥52,659 million (up 2.4% year on year), supported by an increase in passenger volume and the effect of fare revisions in the Transportation Business. On the other hand, net income attributable to owners of parent declined for the second consecutive year, coming in at ¥37,368 million (down 28.1% year on year), due to the reversal of the gain on sale of UDS Co., Ltd. shares recorded in the prior period. As an external factor, interest expense increased to ¥6,165 million (from ¥4,839 million in the prior period), and there is an emerging risk that rising financial costs amid a rising interest rate environment could constrain growth in ordinary income.
Growth Strategy
Aiming for operating profit of ¥80 billion in FY2030 through concentrated investment in tourism, real estate, and hotels, combined with enhanced shareholder returns
A large-scale redevelopment project undertaken jointly by the Company, Tokyo Metro, and Tokyu Land Corporation. Pile work, new construction work, and demolition of the former Shinjuku Mylord have progressed, and leasing of the office space has commenced. Upon completion, large-scale rental income from this prime central Tokyo location is expected to substantially expand the earnings base of the Real Estate Business.
The Board of Directors decided to proceed with the project in September 2025. Land acquisition procedures are underway. This large-scale project is expected to generate real estate revenue through utilization of the former site after relocation, and will also contribute to enhancing value along the railway line.
In March 2026, the Company increased Romancecar services, lengthened train formations, and revised the timetable. Fare revisions were also carried out for the Bus Business and in the Hakone area. As a result, railway passenger volume for FY2026 (ending March 2026) reached 712,628 thousand passengers (up 2.0% year on year), and operating profit for the Transportation Business reached ¥29,517 million (up 11.4% year on year), demonstrating tangible results.
The Company has made active investments in the Hakone area, including the opening of the new Owakudani observation area "Chikyu no Tani" and the opening of "RETONA HAKONE" following a complete renovation. While capturing inbound demand, the Company has also revised pricing, including the Hakone Free Pass, to establish a sustainable capital investment framework.
The Company has set targets of cumulative shareholder returns of ¥180.0 billion for FY2026-FY2030 (¥200.0 billion cumulative for FY2025-FY2030), reducing the equity ratio to 30% by FY2030, and progressive dividends. In May 2026, the Company resolved to acquire treasury shares up to 16 million shares / ¥20.0 billion and began implementation. The annual dividend was increased from ¥40 to ¥55.
Last updated: July 17, 2026