ORIX Corporation

FY26 results were strong; record earnings despite impairments - FY ended Mar 2026 net income: JPY 447.3bn, +27% YoY (+JPY 95.6bn) and above the revised forecast of JPY 440bn. - ROE: 10.4% (+1.6pp YoY). Record highs in net income and market capitalization were highlighted. - Key negative/drag: total impairments JPY 97.2bn (mostly Orix USA), which reduced Q4 net income (Q4: JPY 57.6bn vs Q3 JPY 118.6bn). - Big “surprising good” offset: investments delivered strong growth even after adjusting for ~JPY 95bn of Greenko gains.

Profit engine mix: finance + operation up; investments very volatile - FY26 pretax profit: JPY 691.4bn, +44% YoY (+JPY 211bn). - Finance category: steady improvement driven by insurance investment income and fee income growth in Corporate Financial Services (+JPY 12.9bn / +7%). - Operations category: resilient despite geopolitics; strong performance in inbound-linked businesses and aviation/ships/automotive (Rentec); also gains from stakes and asset sales (+JPY 37bn / +18%). - Investments category: +82% YoY segment profit driven largely by valuation gains/sales (notably Greenko) and gains from real estate/PE (incl. Toshiba) → implies higher earnings volatility.

FY27 outlook: net income growth, ROE target, but investments expected to fall - FY ending Mar 2027 guidance: net income JPY 530bn (+JPY 82.7bn YoY), ROE target 11.7%. - Pretax profit guidance: JPY 760bn (+10% YoY). - Category outlook: Finance and Operation expected to grow, while Investments expected to decline—however, excluding Greenko gains embedded in FY26, investment profits are expected to improve. - Finance segment boost planned: ORIX expects a ~JPY 124.2bn pretax gain related to selling all shares of ORIX Bank (timing/recognition implied within FY27 unless closing shifts).