T&D (8795) Q2 2026 earnings summary

Executive summary

• Achieved key financial KPIs ahead of schedule, with average ROE exceeding the 7.5% target and robust performance from three life insurers leveraging specialized business models and strong new policy sales.

• Group adjusted profit for the six months ended September 30, 2025, was ¥70.1 billion, down 13.4% year-over-year, mainly due to lower investment income from Fortitude, while profit attributable to owners of parent rose 3.0% to ¥67.3 billion.

• Ordinary revenues for the six months ended September 30, 2025, rose 3.6% year-over-year to ¥1,718.6 billion, driven by strong investment income despite a slight decline in insurance premiums.

• Strategic focus on capital efficiency, risk reduction, and shareholder returns, with a new long-term vision emphasizing stable profit growth and business expansion from 2026-2030.

• Interim dividend of ¥62 per share paid; annual dividend forecast at ¥124 per share, marking 11 consecutive years of increases, and share buyback program up to ¥100.0 billion, with approximately ¥62.0 billion acquired by end of October 2025.

Financial highlights

• Group's MCEV increased by approximately JPY 890 billion, supported by solid insurance sales and investments, reaching ¥4,269.5 billion, up 8.2% from March 2025.

• Adjusted EPS doubled from JPY 130 to JPY 295 during the long-term vision period.

• PBR improved from 0.54x (March 2021) to 1.18x (September 2025).

• Annualized premiums of new policies increased 8.6% year-over-year to ¥114.3 billion; policies in force up 2.7% to ¥1,749.6 billion.

• Core profit for the domestic life insurance business rose 27.4% year-over-year to ¥103.4 billion, supported by favorable sales and higher interest/dividends income.

Outlook and guidance

• No change to current guidance despite Q3 profit recovery and higher sales gains; ongoing monitoring of profit levels and market conditions.

• Full-year group adjusted profit forecast is ¥146.0 billion, with 48.1% progress as of the first half.

• Next long-term vision (2026-2030) targets stable profit growth, core business expansion, and enhanced capital circulation.

• Dividend payout ratio set at 60% of average adjusted profit over five years, with flexible share buybacks planned.

• Annual dividend per share is forecast to increase to ¥124.00 from ¥80.00 in the previous year.