Transportation: Earnings Outlook (Apr-Jun)

Research evidence excerpt

Transportation: Earnings Outlook (Apr-Jun)

J P M O R G A N Asia Pacific Equity Research

06 July 2026

Transportation: Earnings Outlook

(Apr-Jun)

Estimate good earnings progress at JR companies and

in marine transportation

Our subsector preference order for 2H 2026 is logistics > marine transportation Japan Equity Research

(short term spanning 1Q–2Q FY2026) > airlines > railways (see our June 18, 2026

Transportation (Land, Sea, Air), OTC

report Transportation sector: 2H 2026 investment strategy). We expect 1Q FY2026 & Small Companies, Real Estate &

results to reveal good earnings progress at the Japan Railway (JR) companies and REITs

in marine transportation. However, we recommend noting their outlook from 2Q AC Ryota Himeno

is not bright as declines in reaction to the Osaka Expo in 2025 will widen at the JR (81-3) 6736-8639

companies, while geopolitics may have brought forward containership ryota.himeno@jpmorgan.com

transportation demand at shipping companies. For our 1Q forecasts, see Figure 1Quarterly JPMorgan Securities Japan Co., Ltd.

OperatingProfitForecasts.

• Logistics: We expect progress toward a guidance beat at SG Holdings. We do

not expect it to raise full-year FY2026 guidance, but think the market will

respond positively as concerns ease over overseas earnings undershooting. We

also estimate progress toward a guidance beat at Nippon Express Holdings (its

fiscal year ends in December), but do not expect it to raise full-year FY2026

guidance given it already factors in some recovery in 2H. Still, as the

company’s outlook for FY2026 already exceeds ¥150 billion, we think Nippon

Express may raise its MTP’s 2028 real estate sales target from at least ¥150

billion. We estimate progress in line with guidance at Yamato Holdings. If