ORIX Corp Ads Reports Q1 Earnings, Exceeds Expectations Amid Challenges

Orix Corp Ads reported strong Q1 earnings with a 20.6 billion yen increase in net income and a 35.3 billion yen increase in pretax profit. The company completed a 40.9 billion yen share buyback program and sold a 17.5% stake in Greenko for a gain of 93.4 billion yen. However, challenges in the US market and declines in the aircraft and ship, and ORIX Europe segments were noted.

Orix Corp. (IX) reported robust financial performance for its fiscal first quarter, ending June 30, 2026, with a net income of JPY 107.3 billion, up JPY 20.6 billion year-over-year (YoY), and an annualized return on equity (ROE) of 10.4% [3]. The Tokyo-based financial services company also posted a significant increase in pretax profit, rising JPY 35.3 billion YoY to JPY 155.5 billion [3].

The company's strong performance was driven by effective cost management and revenue growth, with the finance, operations, and investments categories all posting YoY growth. Orix Corp. completed a JPY 40.9 billion share buyback program, equivalent to 40.9 billion JPY of a 100 billion JPY share buyback program authorized by the company’s Board of Directors [3].

Additionally, Orix Corp. sold a 17.5% stake in Greenko Energy Holdings for a gain of JPY 93.4 billion, contributing to the company's positive earnings [4]. The company also announced plans to acquire a majority stake in Hilco Global, an Illinois-based financial services firm, to bolster its asset management capabilities in the U.S. [4].

However, the company faced challenges in the U.S. market and declines in the aircraft and ship, and ORIX Europe segments. Despite these headwinds, Orix Corp. maintains a robust financial health score of 2.81, rated as "GOOD" [6].

BofA Securities recently raised its price target on Orix to JPY 3,880 from JPY 3,620, citing the company's strong momentum and improved ROE [6]. The firm projects Orix to achieve ROE of 10.3% in FY3/26, 10.2% in FY3/27, and 10.7% in FY3/28 [6].

Looking ahead, investors will closely monitor Orix Corp.'s earnings for the period ending June 30, 2026, with the results expected to be announced on August 7 [2].

References:
[1] https://www.marketscreener.com/news/orix-first-quarter-results-presentation-material-2025-6-ce7c5eded080fe21
[2] https://www.investing.com/news/analyst-ratings/orix-stock-price-target-raised-to-jpy3880-by-bofa-on-roe-improvement-93CH-4177510
[3] https://www.ainvest.com/news/orix-corporation-q1-2026-earnings-net-income-jpy-107-3-billion-annualized-roe-10-4-2508/
[4] https://www.marketscreener.com/news/orix-s-fiscal-q1-profit-rises-24-ce7c5edfda8cf724
[5] https://www.investing.com/news/sec-filings/orix-reports-repurchase-of-54-million-shares-in-july-for-1798-billion-93CH-4169660
[6] https://au.investing.com/news/analyst-ratings/orix-stock-price-target-raised-to-jpy3880-by-bofa-on-roe-improvement-93CH-3966018