ORIX CORPORATION
8591・Prime Market・Other Financing Business
Business
The ORIX Group originated as a leasing company founded in 1964 and has since grown into a comprehensive financial and investment group, currently comprising 1,369 consolidated subsidiaries and 128 equity-method affiliates. In Japan, the group operates corporate leasing and rental, real estate development and operation, life insurance, banking and consumer loans, renewable energy, and Concession Business. Overseas, it engages in finance, investment, global asset management, and aircraft and ship leasing across the Americas, Europe, and Asia & Australia. Its major customers range widely from domestic corporations and individuals to overseas institutional investors, and the diversity of its business portfolio underpins the stability of the group's overall earnings.
Business Model
ORIX has two axes: the "Business Value Creation Model (Alternative Investment & Operations)" and the "Customer Issue Resolution Model (Business Solutions)." In the former, assets acquired and operated on its own balance sheet are converted into funds, leveraging third-party capital to simultaneously earn management/operating fees and gains from enhancing asset value. In the latter, resources from both within and outside the group are combined to solve customer issues and create added value. By combining stock-type revenue from leasing, insurance, banking, etc. with gains on sale from Real Estate and Corporate Investment and equity-method income, the company achieves both diversification and stability of earnings.
Company Strengths
Ten segments stand in parallel, including Corporate Sales & Maintenance Leasing (segment profit of ¥100,740 million), Real Estate (¥78,509 million), Corporate Investment & Concessions (¥125,611 million), Environment & Energy (¥115,772 million), and Insurance (¥102,891 million), resulting in low dependence on any single business. Total segment profit for FY2026 (ending March 2026) reached over ¥732,600 million, up 35% year on year, with multiple segments simultaneously achieving profit growth.
The Global Equity and Bond Asset Management business, centered on ORIX Europe (Robeco), recorded service revenue of ¥273,857 million and generated segment profit of ¥63,051 million. ORIX USA also expanded its segment assets by 22% from the end of the previous fiscal year to ¥1,940,471 million through the acquisition of new subsidiaries. This demonstrates a track record of shifting toward a fee business model utilizing third-party funds.
Assets in the Insurance segment reached ¥3,198,270 million, and assets in the Banking & Credit segment reached ¥3,236,799 million, with the two segments combined accounting for approximately 36% of the group's total assets of ¥18,002,776 million. Life insurance premium revenue and investment income increased 24% year on year to ¥642,904 million, and the balance of operating loans receivable grew 6.9% from the end of the previous fiscal year to ¥2,685,320 million, forming a stable, stock-based earnings foundation.
ENVALITH's Perspective
Performance Trend
Revenue increased 16% from ¥2,874,821 million (FY2025, ending March 2025) to ¥3,330,831 million (FY2026, ending March 2026), achieving five consecutive years of revenue growth. Operating income rose 37.5% from ¥331,826 million to ¥456,248 million, and net income attributable to ORIX Corporation shareholders increased significantly by 27.2% from ¥351,630 million to ¥447,265 million. ROE improved by 1.6 percentage points from 8.8% to 10.4%, and earnings per share increased 30% from ¥307.74 to ¥400.27. The main drivers of revenue growth were fund valuation gains at the US subsidiary, valuation and disposal gains from the sale of shares in Greenko Energy Holdings (market conditions also contributed as an external factor), an increase in life insurance premium income and investment gains (changes in the interest rate environment also had an external impact), and a 117% increase in equity in net income of affiliates (¥123,872 million). Total assets expanded to ¥18,002,776 million (up 7% from the end of the previous fiscal year), and shareholders' equity grew to ¥4,482,500 million (up 10% year on year).
Growth Strategy
Aiming for improved ROE and sustained profit growth through business portfolio rebalancing and strategic investment in the three focus areas
As demonstrated by the transfer of Greenko Energy Holdings shares (gain on sale of ¥83,135 million) and the decision to transfer ORIX Bank's entire equity stake to Daiwa Next Bank (expected gain on sale of approximately ¥124,200 million in FY2027 (ending March 2027)), the company continues its strategy of achieving profit growth through business portfolio rebalancing that combines the sale of existing assets with new investments.
Continuing investment in the three areas set forth in the group's medium- to long-term strategy. In the Environment & Energy segment, advance payments for business assets have increased to ¥115,763 million (up 65% from the end of the previous fiscal year), building a future revenue base. At ORIX USA, a new subsidiary was acquired in the second quarter, expanding the Americas asset management business.
Effective April 1, 2026, the segments used by the company's chief operating decision maker for resource allocation and performance evaluation will be changed. Segment information based on the new classification is scheduled to be disclosed from FY2027 (ending March 2027). The company aims to transition to a management structure that more appropriately reflects the actual state of its business portfolio, with a view to improving capital efficiency.
The annual dividend for FY2026 (ending March 2026) was ¥156.10 (up 30% from ¥120.01 in the previous fiscal year), maintaining a dividend payout ratio of 39.0%. For FY2027 (ending March 2027), the policy is to pay dividends at the higher of a 39% payout ratio or ¥156.10. In FY2026 (ending March 2026), the company conducted share buybacks totaling ¥150,002 million, reducing the number of shares outstanding by 3.3% from the end of the previous fiscal year (from 1,162,962,244 shares to 1,124,106,624 shares).
Last updated: July 19, 2026