ORIX (8591) Q2 2025 earnings summary

Executive summary

• Net income for the first half rose 43% year-over-year to ¥182.9 billion, driven by higher operating leases, real estate and private equity gains, and record-high pre-tax profits of ¥257 billion.

• Segment profits totaled ¥287.8 billion, up 29% year-over-year, with all business categories—Finance, Operations, and Investments—showing steady progress.

• Interim dividend per share increased 45% to ¥62.17, with a 39% payout ratio; share buybacks completed totaling ¥40.1 billion.

• Total revenues increased 3% year-over-year to ¥1,403.6 billion, while total expenses rose 1% to ¥1,206.7 billion.

• Income before income taxes surged 39% year-over-year to ¥257 billion, reflecting gains on sales of subsidiaries and equity method investments.

Financial highlights

• First half ROE was 9.3%, with a full-year target of 9.6% and forecasted full-year ROE at 10.3%.

• Basic earnings per share increased 45% year-over-year to ¥159.42; diluted EPS was ¥159.15.

• Segment assets slightly decreased by ¥114.6 billion to ¥15.9 trillion, mainly due to foreign exchange effects.

• Shareholders' equity ratio was 23.9% as of September 30, 2024.

• Interim dividend set at ¥62.17 per share, up 45% year-over-year, based on 39% of first half net income.

Outlook and guidance

• Full-year net income forecast at ¥390 billion, up 12.7% year-over-year, with strong progress toward the target and more gains on sales expected in the second half.

• Annual dividend for fiscal year ending March 31, 2025, will be the higher of a 39% payout ratio or ¥98.60 per share.

• Asset management AUM target set at ¥100 trillion in the near term.

• Next midterm management plan will focus on both qualitative and quantitative KPIs, with details to be announced by May.

• Cautious on credit costs and geopolitical risks, especially in Greater China and US.