Tokyo Century (8439 ) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 net income was ¥22.1 billion, down 4% year-over-year, mainly due to the absence of last year's one-time gains in Specialty Financing and higher SG&A expenses.

• Revenues rose 4.0% year-over-year to ¥347.6 billion, with gross profit up 7.0% to ¥77.2 billion, driven by International Business segment growth.

• Four out of five segments increased net income; all segments are on track to meet annual forecasts.

• Growth investments include a new truck leasing JV in Australia, active M&A in IT equipment leasing, and expansion in grid-scale storage batteries.

• Reform projects to enhance management foundation are underway, targeting higher profits and corporate value.

Financial highlights

• Ordinary income for Q1 FY2025 was ¥37.3 billion, down 2.4% year-over-year.

• Net income attributable to owners of parent was ¥22.1 billion, a 4% decrease year-over-year.

• EPS declined to ¥45.25 from ¥46.98 year-over-year; diluted EPS was ¥45.06, down from ¥46.80.

• ROE dropped to 8.8% from 10.1% year-over-year; ROA decreased to 1.3%.

• Total assets at June 30, 2025, were ¥6,787.0 billion, down 1.1% from March 31, 2025, mainly due to exchange rates.

Outlook and guidance

• Annual net income forecast remains at ¥93.0 billion, with progress at 23.7% after Q1; full-year net income is forecast to rise 9.1% year-over-year.

• No changes to the dividend policy or annual net income target despite insurance settlements.

• Risk buffer of ¥32.0 billion factored into FY2025 forecast to account for external uncertainties.