Tohoku Electric Power Company, Incorporated
9506・Prime Market・Electric Power & Gas
Business
Tohoku Electric Power, established in 1951, is a comprehensive electric power company serving the six Tohoku prefectures and Niigata Prefecture as its supply area. The group comprises 71 companies in total, including the parent company, 40 subsidiaries, and 30 affiliated companies, and operates across three segments: the "Power Generation & Sales Business," which handles power generation from thermal, nuclear, and renewable energy sources along with electricity retail and solution services; the "Transmission & Distribution Business," which provides a neutral and fair electric power network; and the "Other" segment, covering DX & IT and Comprehensive Facilities Engineering Business, among others. In fiscal year 2025, consolidated net sales reached ¥2,372,420 million, and total assets reached approximately ¥5,731.8 billion, making it a large-scale infrastructure company.
Business Model
In the Power Generation & Sales Business, the company sells electricity generated in-house from thermal, nuclear, and renewable sources through retail and wholesale channels, with a mechanism to pass on cost fluctuations to prices through the fuel cost adjustment system. In the Transmission & Distribution Business, the company stably earns wheeling revenue based on a regulated tariff structure. By combining these two businesses, the structure allows market competition risk and the stability of regulated revenue to complement each other.
Company Strengths
Onagawa Nuclear Power Station Unit 2 has continued stable operation, and nuclear power generation output in FY2025 reached 5,199 million kWh, a 229.4% increase year on year. Low-fuel-cost nuclear power supports the earnings base of the Power Generation & Sales Business, serving as a key driver of segment ordinary income of ¥126,604 million.
Tohoku Electric Power Network Co., Inc. centrally manages transmission and distribution facilities across the six Tohoku prefectures and Niigata Prefecture, recording FY2025 Transmission & Distribution Business sales of ¥476,702 million (external customers). Following a revision to wheeling tariff rates, base wheeling revenue rose 10.7% year on year to ¥131,561 million, forming a stable revenue base as regulated income.
The company holds a diverse power generation mix combining hydroelectric, thermal, nuclear, and renewable energy sources. As of the end of FY2025, the cumulative equity-based renewable energy output reached approximately 900,000 kW, and the company has built up a track record in decarbonization initiatives, including the commencement of commercial operation of grid-scale battery storage facilities (Nirazuka and Okakuda storage stations).
ENVALITH's Perspective
Performance Trend
Revenue declined for two consecutive fiscal years after peaking at ¥3,007,204 million in FY2023, falling to ¥2,372,420 million in FY2025 (down 10.3% year on year). The main causes were a decrease in electricity sales volume (retail) and market price fluctuations. Operating profit was ¥160,380 million (down 42.8% year on year), ordinary profit was ¥126,407 million (down 50.8%), and profit attributable to owners of the parent was ¥84,975 million (down 53.5%), with all profit indicators deteriorating significantly. External factors included a sharp spike in fuel prices and electricity market prices due to the worsening situation in the Middle East, which generated valuation losses on forward electricity transactions, while an increase in supply-demand adjustment costs in the Transmission & Distribution Business also weighed on results. On the other hand, the earnings improvement effect from the restart of Onagawa Nuclear Power Station Unit 2 has been confirmed, and the reversal of valuation losses, which is expected to be neutral to earnings on a two-year cumulative basis, is expected to be a factor in the recovery of performance in FY2026 (ending March 2026).
Growth Strategy
Building a virtuous cycle of "profit, investment, and growth" centered on the three pillars of nuclear power, renewable energy, and DX, aiming for an early recovery of the financial base
With the restart of Unit 2, nuclear power generation output for FY2025 (ending March 2025) reached 5,199 million kWh, up 229.4% year on year. The company aims to reduce power generation costs and improve profitability through continued stable operation of this low-cost, low-carbon power source.
The company is promoting grid reinforcement investment, including establishing two routes for the 500kV transmission line between the Tohoku and Tokyo areas. In FY2025 (ending March 2025), the increase in tangible and intangible fixed assets was ¥417,131 million, up 10.6% year on year, reflecting more aggressive investment. The company is also promoting grid connections for large-scale demand customers through the announcement of a "Welcome Zone."
Through the expansion of bilateral wholesale sales, wholesale electricity sales volume in FY2025 (ending March 2025) increased 20.5% year on year to 20.6 billion kWh. The company is diversifying its revenue sources to offset declining profits from intensifying retail competition, by strengthening corporate PPAs and renewable energy aggregation services.
Based on the medium- to long-term vision "Yorisou next+PLUS," the company has reorganized its business segments into "Power Generation & Sales," "Transmission & Distribution," "Comprehensive Facilities Engineering," "Real Estate," "DX & IT," and "Other." The company is developing new growth areas, including responding to demand for GPUs related to generative AI.
The annual dividend for FY2025 (ending March 2025) was ¥40 per share (an increase from ¥35 in the previous fiscal year), with total dividends of ¥20,043 million. The equity ratio recovered to 19.4%. Even amid an undetermined earnings forecast, the company has disclosed a projected FY2026 (ending March 2026) dividend of ¥40 per share, reflecting its policy of ensuring predictability for shareholders.
Last updated: July 19, 2026