Odakyu Electric Railway Co.,Ltd.

Business Details

Comprises the Railway Business (Odakyu Electric Railway, Odakyu Hakone, Enoshima Electric Railway, etc.), Bus Business (Kanagawa Chuo Kotsu, Odakyu Bus, Tachikawa Bus, etc.), Taxi Business (Odakyu Kotsu), Ferry, Ropeway & Cable Car Business (Odakyu Hakone), and Railway Maintenance Business (Odakyu Engineering). Centered on the Odakyu Line service area (Shinjuku–Odawara–Hakone–Enoshima), it forms the Group's revenue base supporting commuter, tourism, and daily-living transportation demand. In the fiscal year under review, revenue from external customers was ¥178,787 million, accounting for approximately 42.7% of the Group's total.

Recent Overview

Increased passenger volumes and fare revision effects drove both operating revenue and income higher year on year.

In the Transportation Business segment for FY2026 (ending March 2026), both commuter and non-commuter passenger volumes increased on the Railway Business (total of 712,628 thousand passengers, up 2.0% year on year), and fare revisions were implemented in the Bus Business and the Hakone area, resulting in operating revenue of ¥181,261 million (up 3.6% year on year) and operating income of ¥29,517 million (up 11.4% year on year). In March of this year, a timetable revision was implemented involving increased frequency and lengthening of the Romancecar limited express service, and with progress on the Fujisawa Station renovation work, the second-floor ticket gate also began operation.

Key Products

Growth Drivers

• Increase in commuter and non-commuter railway passenger volumes (total of 712,628 thousand passengers in FY2026 ending March 2026, up 2.0% year on year)
• Revenue improvement from fare revisions in the Bus Business and the Hakone area
• Improved convenience and passenger attraction from the timetable revision (implemented March 2026) involving increased frequency and lengthening of the Romancecar limited express and improved connections
• Proactive passenger attraction measures in the Hakone area, including the opening of the new Owakudani observation area "Chikyu no Tani"
• Rollout of digital ticketing services for inbound visitors using the MaaS App "EMot" (in partnership with Klook)
• Enhancement of service-area value through safety and service investments, including platform door installation (5 stations), seismic reinforcement, and completion of in-car security camera installation across all train cars

Risks

• Constraints on stable transportation service provision due to driver shortages (particularly evident in the Bus Business)
• Contingent liabilities related to a workmanship-defect accident on a contracted construction project (loss amount not yet determined; while the potential impact on financial position and results of operations is assessed as limited, discussions are ongoing)
• Risk of natural disasters such as large-scale earthquakes (seismic reinforcement work is ongoing)
• Increase in interest-bearing debt costs due to rising interest rates (the Group's overall interest-bearing debt is on an increasing trend)
• Long-term risk of declining transportation demand along the railway lines due to the falling birthrate, aging population, and population decline