According to the financial results for the third quarter of the fiscal year ending March 2026, announced by Japan Freight Railway Company (JR Freight) on February 7, net sales were 148.183 billion yen (up 5.7% year-on-year), operating profit was 2.453 billion yen (compared to an operating loss of 1.413 billion yen in the same period of the previous year), ordinary profit was 1.876 billion yen (compared to an ordinary loss of 745 million yen in the same period of the previous year), and net profit attributable to parent company shareholders was 1.357 billion yen (compared to a loss of 703 million yen in the same period of the previous year).
In the railway logistics business segment, sales were 447 billion yen (up 4.0%), and the operating loss was 21 billion yen (compared to a loss of 27 billion yen in the same period of the previous year).
In September 2024, inappropriate practices such as the falsification of work records related to wheelset assembly work came to light. As a result, the entire company is working to strengthen its safety management system and restore trust.
In terms of transportation services, we have increased transport capacity on routes with high demand by establishing a direct container train service between Tokyo and Sendai, shortening lead times, and expanding late-night departure schedules. We have also expanded our handling of large containers, for which demand has been increasing in recent years.
In terms of transport volume, container shipments increased by 5.4% year-on-year, while carload shipments decreased by 5.6%, resulting in an overall increase of 2.3%.
Container cargo saw an increase compared to the previous year, with eco-related materials exceeding the previous year's volume due to the transportation of soil generated from the construction of the Chuo Shinkansen, and agricultural products and fresh produce increasing in the Tohoku and Niigata regions due to the expanded distribution of government-stocked rice. Automotive parts also exceeded the previous year's volume.
As part of its integrated logistics business, JR Freight Logi Solutions, which changed its name from Nippon Transport & Warehouse in April 2025, is developing a system to offer total services by utilizing various modes of transportation, including freight rail, with the warehousing functions of its group companies as a central point.
In terms of expenses, repair and operational costs increased due to rising prices. Although operating expenses increased compared to the previous year due to continued efforts to improve operational efficiency, the increase in revenue outweighed these increases, resulting in a reduction in the overall deficit for the business.
The full-year earnings forecast projects net sales of 2143 billion yen (up 6.7%), operating profit of 88 billion yen (up 225.1%), ordinary profit of 74 billion yen (up 408.2%), and net profit attributable to parent company shareholders of 43 billion yen (down 36.4%).
