Kansai Electric FY26 Net Profit Falls 10% to ¥380 Billion; Guides Sharp FY27 Profit Decline

Kansai Electric Power (TSE: 9503), the major utility serving Japan's Kansai region, reported FY3/2026 revenue of ¥4.06 trillion (-6.5%) and net profit of ¥380.1 billion (-9.6%) as energy prices eased. The annual dividend was raised to ¥75, but management guides a sharp FY3/2027 profit decline, with operating profit seen falling 43% to ¥250 billion.

Electric power transmission towers and high-voltage lines at dusk Kansai Electric Power Co., Inc. · Tokyo Stock Exchange Prime

Kansai Electric Power Co., Inc. (TSE: 9503) reported consolidated results for FY3/2026 (J-GAAP). Revenue fell 6.5% to ¥4,056,638 million, operating profit fell 6.7% to ¥437,556 million, ordinary profit eased 2.5% to ¥518,530 million, and net profit attributable to owners fell 9.6% to ¥380,051 million. EPS was ¥341.14; comprehensive income was ¥460,910 million (-7.8%). ROE was 11.7% and the operating margin 10.8%.

Lower energy prices trim revenue and profit

Kansai Electric is one of Japan's largest electric utilities, generating and supplying power across the Kansai region (Osaka, Kyoto, Hyogo and surrounding prefectures) from nuclear, thermal and renewable sources, alongside transmission, gas and overseas businesses. Softer fuel and electricity prices pulled both revenue and reported profit lower from a strong prior year.

Large, asset-heavy balance sheet

Total assets stood at ¥9,854,646 million and net assets ¥3,502,744 million, for an equity ratio of 35.1% (BPS ¥3,101.43). Operating cash flow was ¥652,381 million, against investing outflows of ¥571,921 million as the group continued to invest in generation and grid assets.

Dividend lifted to ¥75

The FY3/2026 annual dividend was raised to ¥75.00 (¥30 interim + ¥45 year-end) from ¥60.00, a consolidated payout ratio of 22.0%; for FY3/2027 the company plans a further increase to ¥80.00 (¥40 + ¥40).

FY27 guidance: profit set to fall sharply

For FY3/2027 management guides higher revenue of ¥4,500,000 million (+10.9%) but sharply lower profit: operating profit of ¥250,000 million (-42.9%), ordinary profit of ¥290,000 million (-44.1%) and net profit of ¥310,000 million (-18.4%), with EPS of ¥278.26. The company also newly consolidated KE Fuel International.

Kansai Electric Power Co., Inc. — FY3/2026 Key Financials (J-GAAP, consolidated)
MetricFY3/2026FY3/2025YoY
Revenue (¥ million)4,056,6384,337,111-6.5%
Operating profit (¥ million)437,556468,877-6.7%
Ordinary profit (¥ million)518,530531,686-2.5%
Net profit attrib. to owners (¥ million)380,051420,364-9.6%
EPS (¥)341.14436.09-21.8%
ROE11.7%15.7%-4.0pp
Annual dividend (¥)75.0060.00+25.0%
FY27 operating profit guidance (¥ million)250,000-42.9%

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.