Keio Corporation
9008・Prime Market・Land Transportation
Transportation Business
Core business of the Keio Group. Handles passenger transportation such as railway and bus services.
| Period | Current | Previous | Change |
|---|---|---|---|
| Operating Revenue (Transportation Business) | ¥133,233 million | ¥130,106 million | ↑ |
| Operating Profit (Transportation Business) | ¥13,254 million | ¥15,694 million | ↓ |
| Operating Margin (Transportation Business) | 9.9% | 12.1% | ↓ |
| Total Passengers Carried | 605,755 thousand | 593,146 thousand | ↑ |
| Total Passenger Transportation Revenue | ¥83,248 million | ¥81,499 million | ↑ |
| Commuter (Teiki) Passengers Carried | 333,562 thousand | 328,046 thousand | ↑ |
| Non-Commuter (Teiki-gai) Passengers Carried | 272,193 thousand | 265,100 thousand | ↑ |
| Depreciation Expenses (Transportation Business) | ¥20,889 million | ¥18,818 million | ↑ |
| Segment Assets (Transportation Business) | ¥511,415 million | ¥475,779 million | ↑ |
Business Details
The Transportation Business segment centers on the Railway Business operated by Keio Corporation itself, and is composed of the Bus Business (Keio Bus Group, Nishi-Tokyo Bus), Taxi Business (Keio Automobile Group), and Freight Transport & Moving Business (Keio Unyu). Its primary customers are commuters and students along the railway lines, and it provides a transportation network with Shinjuku as its eastern hub and Hashimoto as its western hub. As the revenue base for the group as a whole, it plays a role in generating sustainable demand in tandem with community development along the railway lines.
Recent Overview
Passengers carried increased, but operating profit fell 15.5% due to new rolling stock and higher personnel expenses.
In the Transportation Business for FY2026 (ending March 2026), the Railway Business saw increases in both commuter (up 1.7% year on year) and non-commuter (up 2.7% year on year) passengers carried, resulting in increased passenger transportation revenue of ¥83,248 million (up 2.1% year on year). On the other hand, increased depreciation expenses from new rolling stock (¥20,889 million, up 10.9% year on year) and increased personnel expenses associated with compensation improvements led to a significant decline in operating profit to ¥13,254 million (down 15.5% year on year). The Bus Business achieved increased revenue and profit driven by strong highway bus revenue, including increased revenue from routes benefiting from inbound demand. The forecast for FY2027 (ending March 2027) is operating revenue of ¥135,700 million (up 1.9% year on year) and operating profit of ¥13,500 million (up 2.2% year on year).
Key Products
Growth Drivers
- Both commuter and non-commuter passengers carried are trending upward, with continued recovery in demand along the railway lines (FY2026 (ending March 2026): commuter +1.7%, non-commuter +2.7%)
- Increased revenue from inbound demand routes and strong performance in highway bus revenue within the Bus Business
- Long-term demand creation through measures to enhance value along the railway lines based on the medium-term management plan "HIRAKU2030"
- Improved safety and service quality through railway safety investments (such as platform door installation)
Risks
- Continued profit pressure from increased depreciation expenses associated with new rolling stock and railway safety investment (¥20,889 million in FY2026 (ending March 2026), up 10.9% year on year)
- Risk of declining profitability due to increased personnel expenses associated with compensation improvements
- Long-term risk of shrinking transportation demand along the railway lines due to population decline
- Risk of increased funding costs for long-term liabilities (corporate bonds, long-term borrowings) in the Railway Business due to rising interest rates
- Risk of impairment of fixed assets (an impairment loss of ¥427 million was recorded in FY2025 (ending March 2025); no impairment loss was recorded in the Transportation Business in FY2026 (ending March 2026))
Last updated: June 23, 2026