East Japan Railway Company
9020・Prime Market・Land Transportation
Transportation Business
JR East's core segment, centered on railway passenger transportation, accounting for approximately 66% of net sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (external customers) | ¥2,045,840 million | ¥1,945,788 million | ↑ |
| Segment profit (operating profit) | ¥194,414 million | ¥176,091 million | ↑ |
| Depreciation and amortization | ¥303,174 million | ¥299,084 million | ↑ |
| Increase in property, plant and equipment and intangible assets (capital expenditures) | ¥443,720 million | ¥451,211 million | ↓ |
| Segment assets | ¥7,522,076 million | ¥7,309,594 million | ↑ |
Business Details
Centered on the railway passenger transportation business across a wide area including the Kanto and Tohoku regions, the segment also operates a broad range of related businesses, including travel business (JR East View Tourism & Sales), cleaning and maintenance services (JR East Environment Access), station operations (JR East Station Service), railway rolling stock manufacturing (J-TREC) and maintenance (JR East Technology), and construction & facility engineering (Totetsu Kogyo, etc.). The group as a whole is promoting safe, stable transportation and the assurance of service quality.
Recent Overview
Net sales increased 5.1% year on year and operating profit increased 10.4% year on year due to increased railway usage.
In the Transportation Business for FY2026 (ending March 2026), railway transportation revenue increased due to greater railway usage, resulting in net sales of ¥2,045,840 million (up 5.1% year on year) and operating profit of ¥194,414 million (up 10.4% year on year). Meanwhile, multiple transportation disruptions occurred, including major transportation disruptions caused by power outages on the Yamanote, Keihin-Tohoku, Joban, and Utsunomiya lines in January-February 2026, an escalator fire at Hatchobori Station on the Keiyo Line, and a door-opening incident on a moving Chuo Main Line train. A fare revision was implemented on March 14, 2026, and the discontinuation of railway operations on the Tsugaru Line (between Kanita and Mimmaya) and the Kurihara Line (between Kurihara and Kazusa-Kameyama) was announced, effective April 2027.
Key Products
Growth Drivers
- Increase in railway transportation revenue due to increased railway usage (continued expansion of passenger-kilometers)
- Strengthening of the medium- to long-term revenue base through the fare revision implemented on March 14, 2026
- Stimulation of tourism demand and revenue expansion for the Yamagata Shinkansen through introduction of new E8 series rolling stock
- Improved convenience and revenue expansion through digitalization of reservations and payments, including expansion of "Eki-Net Q Ticket" and launch of early reservation services
- Capture of inbound demand through the new "JR EAST PASS" offering and expansion of coverage area for visitors to Japan
- Productivity improvement and cost structure improvement through expansion of one-man train operation and promotion of smart maintenance
- Sustainable growth of the mobility business through promotion of the medium- to long-term growth strategy "PRIDE & INTEGRITY"
Risks
- Structural medium- to long-term decline in transportation demand due to the shrinking working-age population and declining birthrate/aging population
- Risk of transportation disruptions due to major earthquakes and natural disasters (requiring continuous safety investment such as seismic reinforcement)
- Decline in trust and increased response costs due to frequent transportation troubles such as power outages, overhead wire breakages, and rolling stock failures (policy to increase repair expenses)
- Cost pressure from rising personnel and property-related expenses (recorded ¥15,794 million in extraordinary losses related to revisions to the retirement benefit plan)
- Deteriorating profitability of regional local lines and negotiations with local governments along the lines regarding transitioning the transportation system (decision to discontinue the Tsugaru Line and Kurihara Line in April 2027)
- Quality control risks such as improper press-fitting force values in wheel/axle assembly work, and the cost of restoring trust
- Impact on travel demand from an uncertain economic environment due to US trade policy, conditions in the Middle East, and other factors
Last updated: June 17, 2026