ORIX CORP Annual Report - How They Did This Year

I’m putting together a guide to help you make sense of ORIX Corp’s latest annual report. Think of this as a plain-English breakdown of how the company is doing and what you should watch if you are considering an investment.

1. What does this company do?

ORIX is a Japanese financial services group with six main areas: Corporate Financial Services, Leasing, Real Estate, Private Equity, Energy, Insurance, and Banking. Think of them as a "financial Swiss Army knife." They manage a massive portfolio that includes loans, real estate, renewable energy, life insurance, and retail banking.

As of the fiscal year ending March 31, 2026, ORIX remains a major global player, operating with the transparency of a large company that follows strict international reporting rules.

2. Financial performance (The "Big Picture")

This past year was strong, with growth across their main revenue streams. Here is the breakdown:

• Revenue: They brought in ¥3.33 trillion, up from ¥2.87 trillion last year. This growth was driven by their leasing and investment segments.
• Profit: Their total profit rose to ¥458.3 billion, up from ¥351.6 billion in 2025.
• Earnings Per Share (EPS): This is the profit assigned to each share of stock. It rose to ¥400.27, compared to ¥307.74 last year, showing they are generating more value for every share you own.
• Return on Equity (ROE): This measures how well they use shareholder capital to generate profit. It improved to 10.4%, up from 8.8% last year.

3. Financial health (Cash and Stability)

ORIX is growing, with total assets reaching ¥18 trillion. Their total debt is ¥9.16 trillion, which is standard for a financial firm that borrows capital to fund its loans, leases, and real estate projects.

They are also prioritizing shareholder returns. Dividends climbed to ¥156.10 per share, up from ¥120.01 in 2025. Additionally, they reduced the total share count from 1.13 billion to 1.09 billion through buybacks, which increases the proportional ownership of remaining shareholders.

4. Major wins and challenges

• Wins: Profit from companies where ORIX holds a significant stake more than doubled to ¥123.8 billion, proving their strategy of partnering with other businesses is delivering strong results.
• Challenges: Their "allowance for credit losses" rose to ¥80.2 billion from ¥56.8 billion. This is a standard reserve set aside to cover potential loan defaults; while it acts as a cost that lowers current profit, it reflects a cautious approach to managing risk.

5. Key risks to watch

• Credit Quality: ORIX’s success depends on borrowers repaying their loans. If the economy weakens and defaults increase, the company will need to set aside more money for losses, which directly impacts their bottom line.
• Global Economy and Interest Rates: As a global business, ORIX is sensitive to interest rate changes and currency shifts. If rates move against them or the economy slows, their profit margins on loans and the value of their real estate holdings could be affected.

A Quick Note for Investors

ORIX is currently in a growth phase, characterized by rising profits and a commitment to returning cash to shareholders through dividends and buybacks. Because they follow U.S. reporting standards, it is relatively straightforward to compare their performance against other global financial institutions.

What’s next? We have a solid grasp of the numbers. In the next update, we will look at their strategic plans and how they intend to maintain this momentum in a changing global economy.

Stay tuned—the next update will dive into their future strategy.