ORIX Corporation: Q3 2026 Financial Summary
Business Context and Reporting Period
This Form 6-K filing reports the unaudited consolidated financial results for ORIX Corporation for the nine months ended December 31, 2025 (Fiscal Year 2026 Q3). The results were filed with the Tokyo Stock Exchange on February 9, 2026. ORIX operates as a diversified financial services group with segments including Corporate Financial Services, Real Estate, PE Investment, Environment and Energy, Insurance, Banking, and regional operations in the Americas, Europe, and Asia.
Key Financial Metrics
| Metric (Millions of Yen) | Nine Months Ended Dec 31, 2025 | Nine Months Ended Dec 31, 2024 | YoY Change |
|---|---|---|---|
| Total Revenues | 2,408,910 | 2,154,484 | +11.8% |
| Operating Income | 366,284 | 290,724 | +26.0% |
| Income Before Income Taxes | 567,719 | 383,377 | +48.1% |
| Net Income (Attributable to ORIX) | 389,675 | 271,777 | +43.4% |
| Comprehensive Income (Attributable to ORIX) | 771,788 | 332,813 | +131.9% |
| Basic EPS (Yen) | 347.14 | 237.46 | +46.2% |
| Total Assets | 18,125,609 | 16,866,251 | +7.5% |
| Shareholders' Equity | 4,584,992 | 4,089,782 | +12.1% |
| Shareholders' Equity Ratio | 25.3% | 24.2% | +1.1 pp |
Debt and Liquidity: Total short-term and long-term debt increased to ¥6,713,384 million (up 7% from the prior fiscal year end). Deposits increased to ¥2,652,659 million. Cash and cash equivalents stood at ¥1,307,029 million as of December 31, 2025.
Material Changes vs. Prior Period
- Revenue Growth: Total revenues rose 12% primarily driven by gains on investment securities and dividends, including a ¥11,840 million gain from the transfer of Greenko Energy Holdings shares. Life insurance premiums and service income also contributed to the increase.
- Profit Surge: Net income attributable to shareholders increased 43% to ¥389.7 billion. This was fueled by an 81% increase in equity in net income of equity method investments and a 157% increase in gains on sales of subsidiaries (notably the Greenko transaction).
- Segment Performance:
- Environment and Energy: Segment profits surged 828% to ¥122.2 billion, largely due to gains on sales of subsidiaries and investment securities.
- PE Investment and Concession: Profits increased 42% to ¥94.0 billion.
- ORIX USA: Profits declined 50% to ¥14.0 billion due to higher SG&A expenses and lower gains on sales of subsidiaries, despite a 31% increase in segment assets from a new acquisition.
- Banking and Credit: Profits decreased 10% to ¥19.9 billion due to lower gains on investment securities.
- Balance Sheet: Total assets grew 7% to ¥18.1 trillion, driven by increases in installment loans, investment in operating leases, and securities. Shareholders' equity grew 12% to ¥4.6 trillion.
Guidance, Outlook, and Risks
- Full Year Forecast (Fiscal 2026): ORIX forecasts Income Before Income Taxes of ¥640 billion (+33.2% YoY) and Net Income Attributable to Shareholders of ¥440 billion (+25.1% YoY).
- Dividends: The interim dividend for the fiscal year ending March 31, 2026, is set at ¥93.76 per share. The company targets an annual dividend of the higher of a 39% payout ratio or ¥120.01 per share. Based on the forecast net income of ¥440 billion, the expected annual dividend is ¥153.67 per share.
- Risks and Contingencies:
- PFIC Status: The Company notes it may be classified as a "Passive Foreign Investment Company" (PFIC) for U.S. federal income tax purposes, which could subject U.S. holders to special tax rules.
- Forward-Looking Statements: Results are subject to risks including market volatility, foreign exchange fluctuations, and changes in regulatory environments.
Investor Verification Checklist
- Greenko Energy Transaction: Verify the sustainability of the ¥11.8 billion gain from the Greenko share transfer and its impact on the Environment and Energy segment's profitability.
- ORIX USA Performance: Investigate the 50% profit decline in the U.S. segment despite asset growth; assess if the new acquisition is accretive to long-term earnings.
- Dividend Payout Sustainability: Confirm if the projected ¥153.67 annual dividend is achievable given the full-year net income forecast of ¥440 billion.
- PFIC Tax Implications: Review the specific tax consequences for U.S. investors if the PFIC status is confirmed for the fiscal year.
- Debt Levels: Monitor the 7% increase in total debt and its impact on interest expense coverage ratios.