ORIX (8591) Q1 2026 earnings summary

Executive summary

• Net income for Q1 was ¥107.3 billion, up 24% year-over-year, with annualized ROE at 10.4% and strong progress toward the annual forecast, driven by capital gains and robust segment performance.

• Total revenues for the quarter ended June 30, 2025, were ¥768.6 billion, up 9% year-over-year, with operating income up 50% to ¥129.8 billion and income before income taxes up 29% to ¥155.5 billion.

• Return on assets improved to 2.53% for the quarter, and shareholders' equity reached ¥4.15 trillion with a ratio of 24.4%.

• Comprehensive income attributable to shareholders declined 30% year-over-year to ¥144.4 billion, reflecting changes in other comprehensive income components.

• Shareholder returns included a share buyback and a dividend payout policy set at 39% of first-half net income.

Financial highlights

• Segment profit for Q1 increased 20% year-over-year to ¥164.9 billion; pre-tax profit up 29% to ¥155.5 billion.

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

• Debt-to-equity ratio stood at 2.2 times, with total assets at ¥17.0 trillion.

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

• Depreciation and amortization for the quarter totaled ¥101.1 billion.

Outlook and guidance

• Gains from the sale of Greenko and ORIX Asset Management and Loan Services Corporation will be booked in Q2, supporting a strong first-half outlook.

• Full-year net income target is under review due to macroeconomic uncertainty and the need to reassess H2 exits and performance.

• Net income for the year ending March 31, 2026 is forecast at ¥380 billion, an 8.1% year-over-year increase.

• 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 the net income target is met.

• Management expects earnings to be more heavily weighted toward H2, with ongoing review of capital gain timing and risk reserves.