ORIX (8591) Q1 2025 earnings summary

Executive summary

• Q1 net income rose 38% year-over-year to JPY 86.7 billion, representing 22% of the FY25.3 target, with annualized ROE at 8.7%.

• Segment profits increased 28% year-over-year to JPY 137.3 billion, with strong growth in insurance, airport concessions, and domestic PE exits.

• Inbound tourism and global travel recovery drove sharp profit increases in aircraft leasing, airport concessions, and real estate operations.

• Capital gains totaled JPY 35 billion in Q1, mainly from domestic PE and other exits, with proceeds reinvested in growth areas.

• Total revenues rose 5% year-over-year to JPY 708,139 million, driven by higher operating leases, services income, and sales of goods and real estate.

Financial highlights

• Q1 net income: JPY 86.7 billion, up 38% year-over-year, the strongest Q1 since FY18.3.

• Annualized ROE: 8.7%; full-year target 9.6%.

• Segment profits: JPY 137.3 billion, up 28% year-over-year.

• Base profits rose 6% year-over-year to JPY 103.8 billion; investment gains up 261% to JPY 33.5 billion.

• EPS for Q1 was JPY 75.40, up 40% year-over-year.

Outlook and guidance

• Full-year net income target set at JPY 390 billion for FY2025 March, a 12.7% increase year-over-year.

• Full-year capital gains expected to surpass prior year, with ongoing focus on capital recycling and growth investments.

• Forecast full-year dividend per share of JPY 133.2 and payout ratio of 39%.

• Plans to flexibly respond to macroeconomic changes, including interest rates and FX movements.

• Year-end dividend forecast is JPY 98.60 per share.