Tokyo Century (8439 ) Q3 2025 earnings summary

Executive summary

• Net income rose ¥15.0 billion (+26.3% YoY) to ¥72.0 billion, a record for Q1–Q3, driven by Specialty Financing, especially aviation and real estate, and supported by gains on sale of investment securities.

• Revenues for the nine months ended December 31, 2024 rose 0.8% YoY to ¥1,011.8 billion, with gross profit up 9.4% to ¥208.5 billion, led by Specialty Financing and International Business.

• Operating income increased 10.6% to ¥90.5 billion, and ordinary income rose 11.6% to ¥101.7 billion YoY.

• ROE improved to 10.8% (annualized), progressing toward Medium-Term Management Plan 2027 goals.

• Comprehensive income declined 59.1% YoY to ¥75.5 billion, mainly due to lower other comprehensive income.

Financial highlights

• Ordinary income increased 11.6% YoY to ¥101.7 billion; net income attributable to owners of parent up 26.3% YoY to ¥72.0 billion.

• EPS rose 26.5% YoY to ¥147.34, reflecting a 4-for-1 stock split; ROA improved to 1.5% and ROE to 10.8%.

• Total assets grew 1.6% to ¥6,563.4 billion; shareholders’ equity up 4.1% to ¥908.1 billion; net assets rose 4.2% to ¥1,054.1 billion.

• Shareholders’ equity ratio improved to 13.8% (up 0.3 pts YoY).

• Interest-bearing debt increased 2.2% to ¥4,855.8 billion.

Outlook and guidance

• FY2024 net income forecast is ¥80.0 billion (90% achieved by Q3); ordinary income forecast is ¥125.0 billion (81.4% achieved), with no revisions to prior guidance.

• Medium-Term Management Plan 2027 targets net income of ¥100.0 billion, ROE of 10%, and P/B ratio above 1.0.

• Dividend payout ratio targeted at ~35%, with progressive dividend increases aligned with profit growth; annual dividend forecast is ¥58.00 per share, reflecting the stock split.