ORIX (8591) Q1 2026 earnings summary

Executive summary

• Net income for Q1 was ¥107.3 billion, up 24% year-on-year, with annualized ROE at 10.4%.

• Total revenues for the quarter ended June 30, 2025, were ¥768.6 billion, up 8.5–9% year-on-year, driven by gains on investment securities, dividends, and higher sales of goods and real estate.

• Pre-tax profit rose to ¥155.5 billion, a 29% increase year-on-year, with operating income up 50% to ¥129.8 billion.

• Shareholders' equity reached ¥4.15 trillion, with a ratio of 24.4%, and total assets were ¥17.0 trillion.

• Shareholder returns included ¥40.9 billion in share buybacks and a dividend payout ratio of 39% of first-half net income.

Financial highlights

• Basic EPS for the quarter was ¥94.63, up 26% year-on-year; diluted EPS was ¥94.44.

• Segment profit for Q1 rose 20% year-on-year to ¥164.9 billion.

• Debt-to-equity ratio stood at 2.2 times; non-performing ratio for leases and loans was 3.1%.

• Funding costs for domestic currency rose to 0.79%, while foreign currency funding costs declined to 4.89%.

• Shareholders' equity per share increased to ¥3,672.65.

Outlook and guidance

• Gains from Greenko and ORIX Asset Management sales to be booked in Q2, strengthening first-half outlook.

• Full-year net income target under review due to macroeconomic uncertainty and timing of exits; forecast for FY2026 is ¥380 billion, up 8.1% year-on-year.

• Annual dividend is forecast at the higher of a 39% payout ratio or ¥120.01 per share, with a potential increase to ¥132.13 per share if net income target is met.

• Earnings expected to be more heavily weighted to H2.

• Forward-looking statements highlight risks and uncertainties, with guidance subject to market and regulatory changes.