ORIX (8591) Q4 2026 earnings summary

Executive summary

• Achieved record net income of JPY 447.3B for FY ended March 2026, up 27% YoY, with ROE rising to 10.4% and record market capitalization, marking the third consecutive year of record profits.

• Pre-tax profits reached JPY 691.4B (+44% YoY), driven by gains in all business categories and major asset sales, including Greenko and ORIX Bank.

• Segment profits surged 35% YoY, with notable contributions from insurance, asset management, and PE investments.

• Implemented organizational reforms, including a new CXO system and expanded business unit authority, to accelerate decision-making and growth.

• Focused on portfolio optimization, sophisticated risk management, and new business creation as key strategic initiatives.

Financial highlights

• FY 2026 net income: JPY 447.3B, up 27% YoY, exceeding the revised forecast; Q4 net income: JPY 57.6B, impacted by impairments mainly at ORIX USA.

• Pre-tax profit: JPY 691.4B, up 44% YoY; segment profits: JPY 732.6B (+35% YoY).

• Shareholders’ equity: JPY 4.5T, up 10% YoY; consolidated assets: JPY 18.0T, up 7% YoY.

• ROE: 10.4% (up 1.6pp YoY); basic EPS: JPY 400.27.

• Completed JPY 150B share buyback and cancelled over 2% of shares.

Outlook and guidance

• FY 2027 net income target: JPY 530B (+18.5% YoY); ROE target: 11.7%.

• Pre-tax profit guidance: JPY 760B (+10% YoY); segment profits expected to rise to JPY 830B.

• Dividend per share for FY 2027 projected at the higher of JPY 187.36 or a 39% payout ratio; share buyback program set at JPY 250B.

• Finance segment profit expected to rise 63% YoY, driven by ORIX Bank sale gain.

• Segment structure will change from April 2026, with new disclosures from Q1 FY2027.