Mitsubishi HC Capital (8593) Q4 2025 earnings summary

Executive summary

• Achieved record net income of ¥135.1bn for FYE3/2025, marking the third consecutive year of record profits, driven by strong Aviation and Logistics segments and gains from investment securities in Environment & Energy, despite higher credit costs in Global Business and Environment & Energy.

• Revenues increased 7.2% YoY to ¥2,090.8bn, and gross profit rose 21.7% to ¥462.6bn.

• Major developments included the acquisition of a 20% stake in European Energy A/S, the transfer of Miyuki Building Co., Ltd., and continued portfolio transformation with investments in renewable energy and logistics assets.

• Annual dividend increased to ¥40 per share, with a forecasted rise to ¥45 for FYE3/2026, marking 27 consecutive years of dividend growth.

Financial highlights

• Net income increased by ¥11.3bn YoY to ¥135.1bn; recurring income up 27.7% to ¥193.6bn; operating income rose 28.0% YoY to ¥187.1bn.

• Total segment assets grew by ¥756.1bn to ¥10,935.6bn; total assets up 5.5% to ¥11,762.3bn; net assets increased 5.8% to ¥1,804.5bn.

• ROA improved to 1.2% (+0.1pt YoY); ROE at 7.8% (+0.1pt YoY); EPS was ¥94.19, up from ¥86.30.

• New transactions volume increased 8.5% YoY to ¥3,311.7bn.

• Cash and cash equivalents at year-end were ¥290.8bn, down 13.3% YoY.

Outlook and guidance

• Net income for FYE3/2026 forecast at ¥160.0bn (+18.4% YoY), with ROA at 1.4%, ROE at 8.8%, and EPS projected at ¥111.45.

• Dividend per share expected to rise to ¥45, marking 27 consecutive years of increases.

• Forecast assumes gradual global economic slowdown, decrease in credit costs, and no major impairment losses in Environment & Energy; impact of U.S. tariff measures not yet incorporated.