ORIX (8591) Q4 2026 earnings summary

Executive summary

• Achieved record net income of JPY 447.3B for FY March 2026, up 27% year-over-year, with ROE rising to 10.4% (+1.6pp), and market capitalization at record highs for the third consecutive year.

• Pre-tax profits reached JPY 691.4B (+44% YoY), driven by gains in all business categories, including significant contributions from Greenko sale, PE investees, and strong insurance and asset management performance.

• Segment profits surged 35% YoY, with most segments growing except Banking and Credit, Aircraft and Ships, and ORIX USA.

• Implemented organizational reforms, including a new CXO system and expanded business unit authority, to accelerate decision-making and growth.

• Portfolio optimization, sophisticated risk management, and new business creation were key strategic priorities, including major asset sales and new investments.

Financial highlights

• Net income rose 27% year-over-year to JPY 447.3B, exceeding the revised forecast; operating income increased 37.5% YoY to JPY 456.2B.

• Pre-tax profit reached JPY 691.4B, up 44% year-over-year; segment profits totaled JPY 732.6B (+35% YoY).

• ROE improved to 10.4%, up 1.6 percentage points from the prior year; ROA increased to 4.0%.

• Shareholders’ equity rose 10% to JPY 4,482.5B; total assets increased 7% to JPY 18,002.8B.

• Full-year dividend per share hit a record JPY 156.1, up 30% year-on-year; share buyback of JPY 150B completed.

Outlook and guidance

• FY March 2027 net income target set at JPY 530B (+18.5% YoY), with ROE target of 11.7%.

• Pre-tax profit guidance for FY March 2027 is JPY 760B, up 10% year-over-year; segment profits expected to rise to JPY 830B.

• Dividend payout ratio to be maintained at 39%, with projected DPS of JPY 187.36 and a new share buyback program of JPY 250B.

• Segment structure will change from April 2026, with new disclosures from Q1 FY2027.