ORIX (8591) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 net income reached JPY 280.8 billion, up 162% year-over-year, marking a record quarterly profit and achieving 53% of the full-year target.

• Strong core earnings, robust capital recycling, and significant asset management fee growth in Europe, along with gains from Kioxia share sales and valuation, drove results.

• Major asset sales included SUGIKO and ORIX USA's PE portfolio companies; ORIX Bank sale completed and AerFin acquisition announced.

• Total revenues for the quarter rose 17% year-over-year to JPY 876.63 billion, driven by investment securities, dividends, and life insurance premiums.

• Full-year net income forecast remains at JPY 530 billion, with first-half forecast at JPY 840 billion, including large non-cash Kioxia gains.

Financial highlights

• Q1 net income: JPY 280.8 billion (up 162% YoY); segment profits: JPY 424.1 billion (up 173% YoY); pre-tax profits: JPY 405.8 billion (up 161% YoY).

• Kioxia sale and valuation gains contributed JPY 121.7 billion in Q1.

• Adjusted profits (excluding Kioxia): JPY 159.1 billion in Q1.

• Segment assets totaled JPY 14.43 trillion, up JPY 190.9 billion YoY; total assets JPY 18.26 trillion.

• Interim dividend set at JPY 107.27 per share; full-year dividend forecast at JPY 187.36.

Outlook and guidance

• Full-year net income forecast unchanged at JPY 530 billion due to Kioxia share price volatility; H1 net income forecast at JPY 840 billion, including JPY 540 billion Kioxia gains.

• Adjusted profits expected to grow in the second half, supported by improved core earnings.

• Dividend policy revised to 39% of adjusted profits (after tax) or previous year’s dividend, whichever is higher.

• Share buyback program ongoing, with 31% of JPY 250 billion plan completed as of end-July 2026.

• Gains or losses from Kioxia transactions may significantly impact reported net income and remain volatile.