Orix Corporation - ADR

Strong Net Income Growth: ORIX Corporation reported a net income of JPY 88.8 billion for the third quarter, with a cumulative total of JPY 271.8 billion for the nine months ending December 2024, representing a 24% year-over-year increase and an annualized ROE of 9%. The company is on track to achieve a record-high net income target of JPY 390 billion for the fiscal year ending March 31, 2025.

Portfolio Performance and Profit Growth: The three portfolio categories—Finance, Operations, and Investments—have shown positive progress. Finance profits were slightly down by 3% due to a transition of ORIX Credit, but Insurance investments contributed positively. Investments reported a significant profit increase of 86% year-over-year, driven by exits in several projects, indicating strong performance in sectors such as private equity and renewable energy.

Shareholder Returns and Buyback Strategy: ORIX completed JPY 50 billion in share repurchases, reaching the limit of its buyback program. The company plans to cancel treasury stocks exceeding 2% of total shares outstanding. A full-year dividend policy remains unchanged at a payout ratio of 39% of net income, indicating a commitment to returning capital to shareholders while maintaining financial flexibility.