Mitsubishi HC Capital (8593) Q2 2025 earnings summary

Executive summary

• Net income attributable to owners rose 17.0% year-over-year to JPY61.7Bn for 2Q FYE3/2025, driven by strong Aviation and Logistics segments and one-time gains from JSA's fiscal period change, despite higher credit costs in Environment & Energy and Global Business.

• Revenues increased 13.5% YoY to JPY1,069.6Bn, with operating income up 58.7% to JPY102.2Bn and recurring income up 55.9% to JPY104.3Bn.

• Interim dividend increased by 2 yen YoY to 20 yen; annual dividend forecast raised to 40 yen per share.

• Major developments included the acquisition of a 20% stake in European Energy A/S, the transfer of Miyuki Building Co., Ltd., and progress on the Medium-term Management Plan.

• Portfolio profitability enhanced through business replacement and transformation initiatives, with continued focus on stakeholder engagement.

Financial highlights

• Revenues: JPY1,069.6Bn (+13.5% YoY); Operating income: JPY102.2Bn (+58.7% YoY); Net income: JPY61.7Bn (+17.0% YoY).

• Gross profit rose 40.2% YoY to JPY245.4Bn.

• Earnings per share increased to JPY43.02 (diluted: JPY42.92) from JPY36.73 (diluted: JPY36.63) YoY.

• Total segment assets grew 3.4% from FYE3/2024 to JPY10,522.5Bn; total assets reached JPY11,436.4Bn (+JPY286.5Bn from March 31, 2024).

• Extraordinary losses of JPY20.9Bn were recorded, mainly due to the sale of Miyuki Building Co., Ltd.

Outlook and guidance

• Full-year net income forecast remains at JPY135.0Bn, with 2Q progress at 45.7%.

• Aviation and Logistics expected to outperform initial plans; Environment & Energy sales gains anticipated in 2H.

• Medium-term plan targets FYE3/2026 net income of JPY160.0Bn, ROA ~1.5%, ROE ~10%.

• Dividend forecast for FY2025 is JPY40.00 per share, up from JPY37.00 in FY2024.