ORIX (8591) Q4 2025 earnings summary

Executive summary

• Net income for FY ending March 2025 was JPY 351.6 billion, up 2% year-over-year but below the forecast due to missed Greenko sale and significant impairments; record profit achieved with strong segment performance in PE, concessions, aircraft, ships, and corporate financial services.

• Pre-tax profit reached JPY 480.5 billion, up 2% year-over-year, driven by robust investments and offsetting prior year one-off gains.

• Segment profits totaled JPY 544.7 billion, with notable growth in PE & Concession, Aircraft & Ships, and Insurance, but declines in Banking & Credit and Energy & Environment.

• Full-year ROE was 8.8%.

• Shareholder returns increased: full-year DPS at JPY 120.01 (up 22%), with a buyback program up to JPY 100 billion authorized.

Financial highlights

• Net income: JPY 351.6 billion (up 2% YoY); pre-tax profit: JPY 480.5 billion (up 2% YoY); segment profits: JPY 544.7 billion (down 3% YoY).

• Booked JPY 53.1 billion in impairments, mainly in energy and environment-related assets.

• Investment gains, net of impairments, were JPY 87.6 billion; capital gains from exits totaled JPY 140.7 billion.

• Total assets increased 3% to JPY 16,866.3 billion; shareholders' equity rose 4% to JPY 4,089.8 billion.

• Cash, cash equivalents, and restricted cash at year-end were JPY 1,321.98 billion, up JPY 136.68 billion from the prior year.

Outlook and guidance

• FY 2026 net income forecast is JPY 380 billion (up 8.1%), targeting a third consecutive record year.

• Segment profits expected to rise 10% to JPY 600 billion; pre-tax profits to JPY 540 billion (up 12%).

• Dividend per share forecast for FY 2026 is JPY 132.13, with a 39% payout ratio or previous year’s dividend, whichever is higher.

• Share buybacks to double to JPY 100 billion, with total shareholder return ratio at 65%.

• Long-term vision targets JPY 1 trillion net profit and 15% ROE by FY 2035; three-year plan aims for 11% ROE by FY 2028.