Nagoya Railroad Co., Ltd.
9048・Prime Market・Land Transportation
Business
Nagoya Railroad, established in 1921, is a comprehensive group built around a railway network with 444.2 km of operating track, comprising seven segments: Bus, Taxi, Trucking, Marine Transport, Real Estate, Hotel, Tourism, and Aviation-Related Service Business, alongside Department Store Business. It has 118 subsidiaries and 24 affiliated companies, with consolidated operating revenue of ¥691,583 million (FY2026, ending March 2026). It provides integrated urban transportation, logistics, and lifestyle services across the Tokai and Chubu regions, functioning as a regionally rooted business entity whose main customers are residents and businesses along its rail lines as well as inbound visitors to Japan. The company is listed on the Prime Market of the Tokyo Stock Exchange and the Premier Market of the Nagoya Stock Exchange.
Business Model
Starting from passenger flows generated by railways, buses, and taxis, the company creates asset value through real estate leasing, sales, and commercial facility development along its rail lines, while capturing consumer demand through hotels, tourism, travel, and department stores. The trucking and marine transport logistics businesses function as revenue sources targeting external markets. By sharing customers and infrastructure across businesses, the structure secures revenue diversification and stability that could not be achieved through a single business alone.
Company Strengths
The company owns a rail network spanning 444.2km in operating distance, and develops real estate assets such as commercial facilities, rental apartments, and parking lots along its lines in an integrated manner. As of the end of FY2026 (ending March 2026), segment assets reached ¥614,540 million for the Transportation Business and ¥510,018 million for the Real Estate Business, forming a structure in which railway infrastructure and real estate assets mutually enhance value.
The company operates 7 segments in parallel—Transportation, Freight & Transport, Real Estate, Leisure & Service, Distribution, Aviation-Related, and Others—giving it a structure in which underperformance in a single business can be offset by other businesses. In FY2026 (ending March 2026), even as the Freight & Transport and Distribution Businesses posted losses, the Transportation, Real Estate, Leisure & Service, Aviation-Related, and Other Businesses remained profitable, securing consolidated operating profit of ¥36,185 million for the group as a whole.
Meitetsu Toshi Kaihatsu became a co-sponsor of Central Retail Investment Corporation, launching the Meitetsu Group's first REIT business. With the opening of the logistics facility "MCD-LOGI Komaki," the Park-PFI project "Gifu Castle Rakuichi," and the station-connected mixed-use facility "ICHI*Building," revenue from the Real Estate Leasing Business expanded 12.4% year on year to ¥64,220 million.
ENVALITH's Perspective
Performance Trend
Operating revenue grew for five consecutive fiscal years, rising from ¥490,919 million in FY2022 (ended March 2022) to ¥691,583 million in FY2026 (ending March 2026), but the growth rate slowed to a virtually flat 0.1%. Operating profit fell to ¥36,185 million (down 14.0% year on year), marking the first profit decline in four years. This was mainly due to increases in personnel expenses and depreciation, with external factors such as soaring resource prices and inflation also pushing up costs. Ordinary profit declined 19.5% due to a decrease in equity-method investment gains and an increase in interest expenses, while net profit deteriorated sharply, down 39.2%, due to the disappearance of the prior-year gain on negative goodwill and a sharp increase in impairment losses. For FY2027 (ending March 2027), the company forecasts operating profit of ¥45,000 million (up 24.4% year on year) and net profit of ¥39,000 million (up 69.9% year on year), driven mainly by an improvement in the Freight & Transport Business's earnings.
Growth Strategy
Aiming for sustainable growth through improvement of the Freight & Transport Business's earnings, expansion of the real estate turnover-type business, and maintaining a consolidated dividend payout ratio of 30% or more
Promoting the integration of bases and management resources through business integration with the NX Group, improving transport efficiency, and providing high value-added services through the new Suita Distribution Center. The company has explicitly identified this as the main driver of the increase in consolidated operating profit for FY2027 (ending March 2027), with turning around from an operating loss of ¥7,711 million to profitability being the top priority.
Meitetsu Urban Development Co., Ltd. has become a joint sponsor of Central Retail Investment Corporation, marking the Meitetsu Group's first entry into the REIT business. Real estate leasing revenue is being expanded through the opening of the logistics facility "MCD-LOGI Komaki" and the launch of new commercial and mixed-use facilities. The company is pursuing improved asset efficiency by leveraging segment assets of ¥510,018 million.
From the beginning of FY2027 (ending March 2027), reportable segments have been reorganized from 7 categories to 5 categories (Transportation, Freight & Transport, Real Estate, Leisure & Lifestyle Services, and Aviation Information Technology Services). The Distribution Business, Aviation-Related Service Business, and Other Businesses have been consolidated to clarify the positioning of each business toward the growth of the group as a whole.
From FY2027 (ending March 2027), a new policy has been established to maintain a consolidated dividend payout ratio of 30% or more and a minimum dividend of ¥60 per share. A 50% increase in dividends is planned, from ¥40 in FY2026 (ending March 2026) to a forecast of ¥60 in FY2027 (ending March 2027). The policy is to continue stable shareholder returns while comprehensively considering business performance trends, the management environment, and financial condition.
Promoting digitalization through the expansion of MaaS Platform "CentX" functionality, the expanded introduction of new-model ticket vending machines and charging machines, and the expansion of AI image analysis-based railroad crossing monitoring systems. Continuing safety and transport capacity investments, including the ongoing elevated track construction at 5 locations (switchover completed at Kitayama Station on the Seto Line and Wakabayashi Station on the Mikawa Line) and the construction of 30 new commuter-type railcars. Capital expenditure for property, plant and equipment acquisitions rose significantly year on year to ¥172,267 million.
Last updated: July 19, 2026