The FY2026 results show a powerful profit acceleration to ¥447B driven by one-time and investment gains. However, the 82% surge in credit provisions in the Americas signals potential asset-quality headwinds in the largest profit contributor. The ¥250B buyback is supportive for TSR. Traders should monitor the upcoming Q1 FY2027 consolidated results for the Kioxia-derived income from TB Investment LP (estimate pending) as a potential further catalyst, and watch for any incremental credit deterioration in the US portfolio.
Price Chart
Executive Summary
ORIX Corporation filed its annual 20-F for FY2026 (year ending March 31, 2026), reporting a sharp acceleration in results. Net income attributable to ORIX Corporation shareholders rose 27% to ¥447.3 billion ($447,265 million), driving ROE to 10.4% from 8.8% the prior year. The standout catalyst was the recognition of a ¥83,135 million ($~560M) gain from transferring shares of Greenko Energy Holdings, booked in gains on sales of subsidiaries and equity method investments, and strong valuation gains on fund investments at the U.S. subsidiary, pushing gains on investment securities to ¥127 billion vs ¥11.8 billion last year. Total revenues grew 16% to ¥3.33 trillion. The Environment & Energy segment swung from a ¥-4.9 billion loss to a ¥115.8 billion profit. Total segment profits rose 35% to ¥732.6 billion. However, credit quality showed strains: the provision for credit losses surged 82% to ¥34 billion, driven by higher reserves for individually-assessed loans in the Americas, and the allowance for credit losses ratio rose to 1.5% from 1.1%. ORIX Europe and Asia & Australia segments each saw profits up ~42-49%. The cross-filing context (ongoing ¥250 billion buyback authorization through March 2027) provides capital-return support.
Key Facts
- FY2026 net income attributable to ORIX shareholders: ¥447,265 million (up 27% YoY), ROE 10.4% vs 8.8%
- Total revenues: ¥3,330,831 million (up 16%) with gains on investment securities surging to ¥128,948 million (up 800%)
- Total segment profits: ¥732,597 million (up 35%), led by Environment & Energy swing to ¥115,772 million (from ¥-4,923 million) and Insurance up 38%
- Gains on sales of subsidiaries and equity method investments: ¥111,311 million (up 27%), driven by ¥83,135 million gain on Greenko Energy Holdings transfer
- Provision for credit losses: ¥34,017 million (up 82% from ¥18,723 million), with individually-assessed loan provisions in Americas increasing ¥8,508 million
- Allowance for credit losses ratio: 1.5% (up from 1.1%), total allowance ¥74,712 million
- Total assets: ¥18,002,776 million (up 7%), ORIX shareholders equity: ¥4,482,500 million (up 10%)
- Dividend per share: ¥156.10, up from ¥120.01; ongoing ¥250 billion buyback authorized through March 2027
Financial Impact
Net income up ¥95.6B YoY to ¥447.3B; major catalyst: ¥83.1B gain on Greenko transfer.
Risk Factors
- Elevated credit provision (+82% YoY) in Americas portfolio — possible deterioration ahead
- Large portion of earnings (¥83B Greenko gain) is non-recurring; FY2027 comps will be difficult
- Geopolitical risks (US tariffs, China slowdown, Russia-Ukraine) flagged by management as ongoing
- Unrealized losses on available-for-sale debt securities widened to ¥910.5 billion (from ¥591.2 billion)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 20-F Filing (Primary) | 0001193125-26-276640 |
| Document: d29000dex81.htm | 0001193125-26-276640 |
| Document: d29000dex121.htm | 0001193125-26-276640 |
| Document: d29000dex131.htm | 0001193125-26-276640 |
| Document: d29000dex151.htm | 0001193125-26-276640 |
| Document: 0001193125-26-276640-index-headers.html | 0001193125-26-276640 |
| Document: 0001193125-26-276640-index.html | 0001193125-26-276640 |
| Document: 0001193125-26-276640.txt | 0001193125-26-276640 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 21d ago | 6-K | $37.34 | awaiting T+60 | — | $36.59 (−2.01%) |
Sep 3, 2026 7w ago | 6-K | $41.19 | awaiting T+60 | — | $36.59 (−11.17%) |
Aug 7, 2026 11w ago | 6-K | $40.09 | awaiting T+60 | — | $36.59 (−8.73%) |
Aug 5, 2026 11w ago | 6-K | $41.31 | awaiting T+60 | — | $36.59 (−11.43%) |
Jul 6, 2026 16w ago | 6-K | $39.85 $38.23 | ▼ −4.07% | ▼ −5.79% | $36.59 (−8.18%) |
Jun 30, 2026 16w ago | 6-K | $38.04 $39.10 | ▲ +2.79% | ▼ −0.03% | $36.59 (−3.81%) |
Jun 25, 2026 17w ago | 6-K | $38.48 $39.30 | ▲ +2.13% | ▼ −1.72% | $36.59 (−4.91%) |
Jun 23, 2026 17w ago | 6-K | $39.20 $39.59 | ▲ +0.99% | ▼ −2.25% | $36.59 (−6.66%) |
Jun 22, 2026 18w ago | 20-F | $40.36 $39.69 | ▼ −1.66% | ▼ −3.41% | $36.59 (−9.34%) |
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