Mitsubishi HC Capital (8593) Q1 2027 earnings summary

Executive summary

• Net income for 1Q FY2026 was ¥31.6bn, down 44.8% YoY, mainly due to the absence of prior-year one-time gains from fiscal period changes and lower asset sale gains, especially in Real Estate.

• Revenues declined 7.8% YoY to ¥539.1bn, with gross profit down 25.1% to ¥113.4bn.

• Progress toward full-year net income forecast (¥160bn) was 19.8%, broadly in line with plan.

• Several strategic initiatives were announced, including a new medium-term management plan, renewable energy partnerships, and digital infrastructure alliances.

• The company was recognized for ESG achievements, including selection for the Supplier Engagement Assessment Leaderboard and ISS ESG Prime status.

Financial highlights

• Operating income dropped 42.9% YoY to ¥47.1bn; recurring income decreased 41.7% to ¥46.4bn.

• Earnings per share for the quarter were ¥22.03, down from ¥39.89 a year earlier.

• Comprehensive income rose to ¥57.0bn from ¥5.1bn, driven by improved other comprehensive income items.

• Total assets increased 1.7% from FY2025-end to ¥13,314.4bn as of June 30, 2026.

• Net assets rose to ¥2,028.2bn, with an equity ratio of 15.1%.

Outlook and guidance

• FY2026 net income forecast is ¥160bn, a 1.4% decrease YoY; 1Q progress was 19.8%.

• Most asset sale gains are expected in the second half.

• Annual dividend per share forecast is ¥51, up ¥5 YoY, with a payout ratio of 45.8%.

• No changes to previously announced financial or dividend forecasts.

• FX sensitivity: ¥1 depreciation vs USD/GBP increases net income by ¥460m/¥110m, respectively.