Japan Railway Sector Monthly (June 2026): No change in the underlying demand trend

Research evidence excerpt

Japan Railway Sector Monthly (June 2026): No change in the underlying demand trend

Global Research

15 July 2026ab

Japan Railway Sector Monthly (June 2026) Equities

JapanNo change in the underlying demand trend

Marine Transport

Yusuke Isogai, CFA

Overview: Direct hit from two typhoons Analyst

June monthly figures were weak compared with the strong performance in May. In June yusuke.isogai@ubs.com

last year, the rainy season was relatively dry and weather conditions were favourable, +81-3-5208 6204

whereas this year typhoons made landfall twice, in early and late June. Excluding the

impact of the typhoons, the solid trend in railway demand appears to have continued.

Among the four JR companies, JR East made the best impression. Despite the impact of

the typhoons and two strong earthquakes, the company performed well, with revenue

up 6% yoy, exceeding the company's plan (+5% yoy).

JR East: Solid performance despite earthquake impact

June revenue rose 6.3% yoy, with a contribution from the fare hike on 14 March (up an

average of 7%). Although growth appears to have slowed from the 10% increase in

May, the main factors were typhoons and two strong earthquakes in the company’s

operating area. Shinkansen passenger numbers were flat (±0％ yoy). The Tohoku

Shinkansen saw a decline of 1% yoy due to the impact of the earthquakes, while the

Joetsu Shinkansen rose 2% and the Hokuriku Shinkansen increased 3%, both

maintaining strong trends on the back of robust leisure demand.

JR West: Underlying demand remains strong

June revenues declined 0.2% yoy. Considering the impact of the weather and a

reactionary decline following the Kansai Expo, underlying demand appears to have been

strong. Passenger numbers on the Sanyo Shinkansen declined 2% yoy, while the