Mitsubishi HC Capital (8593) investor relations material

Executive summary

• Net income attributable to owners of the parent reached a record ¥162.2 billion in FY2025, up 20.0% year-over-year, exceeding forecasts for the fourth consecutive year, driven by strong performance in Aviation, Real Estate, and Logistics, lower credit costs, and fiscal period changes at subsidiaries.

• Revenues rose 6.0% year-over-year to ¥2,215.4 billion, with operating income up 28.5% to ¥240.4 billion and recurring income up 22.0% to ¥236.1 billion.

• Comprehensive income surged 62.8% year-over-year to ¥261.5 billion.

• Major initiatives included new business launches in renewable energy, digital solutions, strategic alliances, and progress on climate action and ESG targets.

• Fiscal period changes at key subsidiaries (elfc, CAI, PNW) added ¥22.8 billion to FY2025 segment profit.

Financial highlights

• Gross profit increased 8.1% year-over-year to ¥500.2 billion.

• Operating income surged 28.5% year-over-year to ¥240.4 billion; net income attributable to owners of the parent grew 20.0% to ¥162.2 billion.

• Earnings per share rose to ¥112.98 from ¥94.19 year-over-year.

• Credit costs declined 59.4% year-over-year to ¥20.1 billion, mainly due to lower costs in the Americas' commercial truck business.

• Cash and cash equivalents at year-end rose 19.0% to ¥346.0 billion.

Outlook and guidance

• FY2026 net income is forecast at ¥160 billion, broadly flat year-over-year, but underlying net income (excluding fiscal period changes) is expected to rise by ¥20.6 billion (+14.8%).

• Annual dividend per share is projected to rise to ¥51, marking the 28th consecutive year of dividend growth, with a payout ratio of 45.8%.

• The forecast does not reflect potential impacts from Middle East instability due to uncertainty.

• Growth anticipated across all business units, led by a recovery in Global Customer Business.