Mitsubishi HC Capital (8593) Q1 2026 earnings summary

Executive summary

• Net income for 1Q FY2025 was ¥57.2bn, up 46.2% year-over-year, driven by asset-related gains in Real Estate, strong performance in Logistics and Aviation, and a one-time boost from fiscal period changes in key subsidiaries.

• Revenues increased 10.3% year-over-year to ¥584.5bn, and operating income surged 68.5% to ¥82.5bn.

• Results benefited from changes in fiscal periods of key subsidiaries (elfc, CAI, PNW), contributing additional profit.

• Comprehensive income dropped sharply to ¥5.1bn from ¥146.1bn a year earlier, mainly due to negative foreign currency translation adjustments.

• New transactions volume declined 8.1% year-over-year, mainly due to fewer large-lot deals in Aviation and Real Estate and FX impacts.

Financial highlights

• Gross profit rose 33.4% year-over-year to ¥151.6bn; recurring income increased 61.9% to ¥79.7bn.

• Operating income surged 68.5% to ¥82.5bn; net income attributable to owners was ¥57.2bn, up 46.2%.

• Asset-related gains rose 70.8% to ¥18.1bn, mainly from Real Estate asset sales.

• Credit costs increased 24.1% year-over-year to ¥7.6bn, with notable rises in Global Customer Business and Customer Solutions.

• Total assets as of June 30, 2025, were ¥11,560.7bn, down ¥201.5bn from March 31, 2025.

Outlook and guidance

• Full-year net income forecast remains at ¥160.0bn, with 35.8% of the target achieved in Q1.

• No changes to guidance as results are in line with plan; U.S. tariff effects are not included in the forecast.

• Dividend forecast for the year is ¥45 per share (payout ratio 40.4%), up from ¥40 in the previous year.

• Global Customer Business aims to recover through lower credit costs in the Americas and growth in Europe.