Mitsubishi HC Capital (8593) Q3 2025 earnings summary

Executive summary

• Net income attributable to owners rose 8.0% year-over-year to ¥87.0Bn for 3Q FYE3/2025, driven by strong Aviation and Logistics segments, large asset sales in Real Estate, and fiscal period adjustments, despite higher credit costs in Global Business and Environment & Energy.

• Gross profit increased 28.3% year-over-year to ¥346.5Bn, with recurring income up 34.3% to ¥140.0Bn.

• Revenues rose 8.9% year-over-year to ¥1,551.9Bn, while operating income increased 35.7% to ¥137.9Bn.

• Major developments included investment in European Energy A/S, new decarbonization initiatives, and progress on the Medium-term Management Plan.

• Total segment assets grew 6.9% from the previous year to ¥10,877.0Bn, mainly due to asset increases in Aviation and Logistics.

Financial highlights

• Net income attributable to owners was ¥87.0Bn, up 8.0% year-over-year.

• New transactions volume reached ¥2,503.8Bn, up 13.3% year-over-year, led by Aviation and Logistics.

• Equity capital increased 6.1% to ¥1,788.8Bn.

• Earnings per share increased to ¥60.64 from ¥56.14 year-over-year.

• Total assets grew to ¥11,805.1Bn as of December 31, 2024, up ¥655.2Bn from March 31, 2024.

Outlook and guidance

• Full-year net income forecast remains at ¥135.0Bn, with 64.5% progress as of 3Q, supported by expected gains in Aviation, Logistics, and asset sales in Environment & Energy.

• Aviation and Logistics segments are expected to exceed initial plans, while Environment & Energy anticipates large gains from an overseas infrastructure sale.

• ROA and ROE targets for FYE3/2025 are 1.2% and 8.0%, with a medium-term plan aiming for ¥160.0Bn net income and 10% ROE by FYE3/2026.

• Annual dividend per share forecasted at ¥40, up ¥3 year-over-year, with a payout ratio target of 40% or more.