West Japan Railway Company

Business Details

Centered on the railway business (Shinkansen and conventional lines) operating across 2 prefectures/16 prefectures spanning Hokuriku, Kinki, Chugoku, and northern Kyushu, the segment also operates passenger motor vehicle transportation (bus), ferry, and rental car businesses. It further encompasses related businesses such as rolling stock and other equipment construction, machinery and equipment construction, electrical construction, cleaning and maintenance, construction, and station operations management. Railway transportation revenue accounts for the vast majority of revenue, with the Shinkansen (Sanyo/Hokuriku) and Kinki area conventional lines serving as the main revenue sources. This is the most important segment, accounting for approximately 60% of the Group's total external customer sales.

Recent Overview

Both sales and operating profit increased year-on-year, driven by solid domestic demand alongside the Osaka-Kansai Expo and inbound demand.

In the Mobility Business segment for FY2026 (ending March 2026), external customer sales reached ¥1,105,693 million (up 5.6% year-on-year) and operating profit reached ¥130,920 million (up 6.9% year-on-year), driven by the capture of demand from the Osaka-Kansai Expo (April to October 2025) and inbound demand, as well as continued solid domestic demand even after the Expo concluded. The company implemented multiple demand-creation and value-enhancement initiatives, including the launch of the Shinkansen reservation service "LINE kara EX," the launch of the unified paid reserved-seating brand "SUWALOCA," and the opening of the new Tegarayama Peace Park Station. Meanwhile, the increase in fixed assets rose significantly year-on-year to ¥202,092 million, reflecting continued capital investment in safety measures and infrastructure development.

Key Products

Growth Drivers

• Capturing increased exchange population and access transportation demand in the Kansai metropolitan area triggered by the Osaka-Kansai Expo (Expo Liner operations, venue shuttle bus operations)
• Expansion of services for foreign visitors to Japan, such as QR tickets and multi-ride passes, driven by continued growth in inbound demand
• Passenger revenue per capita enhancement initiatives, including expansion of the paid reserved-seating service "Ureseat" and launch of the unified brand "SUWALOCA"
• Expansion of the WESTER world customer base through digital service enhancements such as the Shinkansen reservation service "LINE kara EX"
• Productivity improvement through railway DX, including promotion of the comprehensive infrastructure management business "JCLaaS" and utilization of optical fiber sensing technology
• Enhanced safety and stable transportation through expansion of Sanyo Shinkansen seismic reinforcement and derailment prevention measures across the entire line (targeted for completion by end of FY2028)

Risks

• Decline in ridership and deteriorating profitability of regional conventional lines due to the declining birthrate, aging population, and population decrease
• Increasing pressure on personnel and outsourcing costs due to worsening labor shortages (cost increases amid rising prices and interest rates)
• Risk of service disruptions and increased capital investment burden due to intensifying natural disasters (earthquakes, heavy rain)
• Price competition in intercity transportation due to competition with airlines, highway buses, and private vehicles
• Increase in operating expenses due to price inflation, including electricity rate hikes
• Continued burden of ongoing safety investments stemming from the Fukuchiyama Line train accident (platform barrier installation, seismic reinforcement, etc.)
• Risk of demand decline after the conclusion of the Osaka-Kansai Expo and the effectiveness of measures to create the next wave of demand