SEC Form 6-K filed by ORIX Corporation

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2025

Commission File Number: 001-14856

 

 

ORIX Corporation

(Translation of Registrant’s Name into English)

 

 

World Trade Center Bldg., SOUTH TOWER, 2-4-1 Hamamatsu-cho, Minato-ku, Tokyo, JAPAN

(Address of Principal Executive Offices)

 

 

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F ☒  Form 40-F ☐

 

Table of Contents

Material Contained in this Report

 

1.		ORIX’s First Quarter Consolidated Financial Results (April 1, 2025 –June 30, 2025) filed with the Tokyo Stock Exchange on Thursday, August 7, 2025.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

		ORIX Corporation
Date : August 7, 2025		By		/s/ Yasuaki Mikami
				Yasuaki Mikami
				Member of the Board of Directors Senior Managing Executive Officer Responsible for Corporate Function Unit Responsible for Work Style Reform Project ORIX Corporation

 

Consolidated Financial Results

April 1, 2025 - June 30, 2025

 

 

August 7, 2025

In preparing its consolidated financial information, ORIX Corporation (the “Company”) and its subsidiaries have complied with generally accepted accounting principles in the United States of America.

This document may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on the Company’s current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission.

The Company believes that it may have been a “passive foreign investment company” for U.S. federal income tax purposes in the year to which these consolidated financial results relate by reason of the composition of its assets and the nature of its income. In addition, the Company may be a PFIC for the foreseeable future. Assuming that the Company is a PFIC, a U.S. holder of the shares or American depositary shares of the Company will be subject to special rules generally intended to eliminate any benefits from the deferral of U.S. federal income tax that a holder could derive from investing in a foreign corporation that does not distribute all of its earnings on a current basis. Investors should consult their tax advisors with respect to such rules, which are summarized in the Company’s annual report.

For further information please contact:

Investor Relations and Sustainability Department

ORIX Corporation

World Trade Center Bldg., SOUTH TOWER, 2-4-1 Hamamatsu-cho, Minato-Ku, Tokyo, 105-5135

JAPAN

Tel: +81-3-3435-3121 Fax: +81-3-3435-3154

E-mail: [email protected]

Consolidated Financial Results from April 1, 2025 to June 30, 2025

(U.S. GAAP Financial Information for ORIX Corporation and its Subsidiaries)

 

Corporate Name:		ORIX Corporation
Listed Exchanges:		Tokyo Stock Exchange (Securities No. 8591)
		New York Stock Exchange (Trading Symbol : IX)
Head Office:		Tokyo JAPAN
		Tel: +81-3-3435-3121
		(URL https://www.orix.co.jp/grp/en/ir/)

1. Performance Highlights as of and for the Three Months Ended June 30, 2025

(1) Performance Highlights - Operating Results (Unaudited)

(millions of yen)

 

		Total Revenues				Year-on-Year Change				Operating Income				Year-on-Year Change				Income before Income Taxes				Year-on-Year Change				Net Income Attributable to ORIX Corporation Shareholders				Year-on-Year Change
June 30, 2025			768,641				8.5	%			129,750				50.4	%			155,480				29.4	%			107,288				23.7	%
June 30, 2024			708,139				4.6	%			86,266				3.9	%			120,169				34.4	%			86,735				37.7	%

“Comprehensive Income Attributable to ORIX Corporation Shareholders” was ¥144,448 million for the three months ended June 30, 2025 (year-on-year change was a 30.3% decrease) and ¥207,115 million for the three months ended June 30, 2024 (year-on-year change was a 29.5% increase).

 

		Basic Earnings Per Share				Diluted Earnings Per Share
June 30, 2025			94.63				94.44
June 30, 2024			75.40				75.28

 

*Note 1:

Unless otherwise stated, all amounts shown herein are in millions of Japanese yen, except for per share and dividend amounts, which are in single yen.

(2) Performance Highlights - Financial Position (Unaudited)

 

		Total Assets				Total Equity				Shareholders’ Equity				Shareholders’ Equity Ratio
June 30, 2025			17,000,280				4,223,446				4,145,509				24.4	%
March 31, 2025			16,866,251				4,171,783				4,089,782				24.2	%

 

*Note 2:

“Shareholders’ Equity” refers to “Total ORIX Corporation Shareholders’ Equity.”

“Shareholders’ Equity Ratio” is the ratio of “Total ORIX Corporation Shareholders’ Equity” to “Total Assets.”

2. Dividends (Unaudited)

 

		First Quarter-end				Second Quarter-end				Third Quarter-end				Year-end				Total
March 31, 2025			—				62.17				—				57.84				120.01
March 31, 2026			—				—				—				—				—
March 31, 2026 (Est.)			—				60.00				—				60.01				120.01

 

*Note 3:

Revision from previously announced dividend forecast: No

 

*Note 4:

For the fiscal year ending March 31, 2026, the annual dividend is forecasted at the higher of either payout ratio of 39% or ¥120.01 per share. In the above table, the minimum forecasted dividend has been stated. If net income attributable to ORIX Corporation shareholders is ¥380 billion, as stated in the forecast for the year ending March 31, 2026 described below, the annual dividend per share is expected to be ¥132.13.

 

- 1 -

3. Forecast for the Year Ending March 31, 2026 (Unaudited)

 

		Net Income Attributable to ORIX Corporation Shareholders				Year-on-Year Change
March 31, 2026			380,000				8.1	%

 

*Note 5:

Although forward-looking statements in this document are based on information currently available to ORIX Corporation and are based on assumptions deemed reasonable by ORIX Corporation, actual financial results may differ materially due to various factors. Readers are urged not to place undue reliance on such forward-looking statements.

Factors causing a result that differs from forward-looking statements include, but are not limited to, those described under “Risk Factors” in our Form 20-F submitted to the U.S. Securities and Exchange Commission.

 

*Note 6:

Revision from previously announced forecast for the year ending March 31, 2026: No

4. Other Information

 

(1) Significant Changes in Scope of Consolidation			Yes ( )  No ( x )
Addition - None (        )			Exclusion - None (        )
(2) Adoption of Simplified Accounting Method			Yes ( )  No ( x )
(3) Changes in Accounting Principles, Procedures and Disclosures
1. Changes due to adoptions of new accounting standards			Yes ( )  No ( x )
2. Other than those above			Yes ( )  No ( x )

(4) Number of Issued Shares (Ordinary Shares)

1. The number of issued shares, including treasury stock, was 1,162,962,244 as of June 30, 2025, and 1,162,962,244 as of March 31, 2025.

2. The number of treasury stock was 30,796,694 as of June 30, 2025, and 23,259,695 as of March 31, 2025.

3. The average number of outstanding shares was 1,133,591,927 for the three months ended June 30, 2025, and 1,150,311,448 for the three months ended June 30, 2024.

The Company’s shares held through the Board Incentive Plan Trust (3,413,000 shares as of June 30, 2025 and 3,413,000 shares as of March 31, 2025) are not included in the number of treasury stock as of the end of the periods, but are included in the average number of shares outstanding as treasury stock that are deducted from the basis of the calculation of per share data.

* These consolidated financial results from April 1, 2025 to June 30, 2025 are not subject to certified public accountant’s or audit firm’s quarterly review.

 

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1. Summary of Consolidated Financial Results

(1) Financial Highlights

Financial Results for the Three Months Ended June 30, 2025

 

				Three months ended June 30, 2024				Three months ended June 30, 2025				Change
												Amount				Percent
Total Revenues		(millions of yen)			708,139				768,641				60,502				9	%
Total Expenses		(millions of yen)			621,873				638,891				17,018				3	%
Income before Income Taxes		(millions of yen)			120,169				155,480				35,311				29	%
Net Income Attributable to ORIX Corporation Shareholders		(millions of yen)			86,735				107,288				20,553				24	%
Earnings Per Share (Basic)		(yen)			75.40				94.63				19.23				26	%
(Diluted)		(yen)			75.28				94.44				19.16				26	%
ROE (Annualized) *1		(%)			8.7				10.4				1.7				—
ROA (Annualized) *2		(%)			2.11				2.53				0.42				—

 

*1	ROE is the ratio of Net Income Attributable to ORIX Corporation Shareholders for the period to average ORIX Corporation Shareholders’ Equity.

*2	ROA is calculated based on Net Income Attributable to ORIX Corporation Shareholders.

Overview of Business Performance (April 1, 2025 to June 30, 2025)

Total revenues for the three months ended June 30, 2025 (hereinafter, “the first consolidated period”) increased 9% to ¥768,641 million compared to ¥708,139 million during the same period of the previous fiscal year primarily due to increases in gains on investment securities and dividends, sales of goods and real estate and services income, partially offset by decreases in life insurance premiums and related investment income.

Total expenses increased 3% to ¥638,891 million compared to ¥621,873 million during the same period of the previous fiscal year primarily due to increases in costs of goods and real estate sold and services expense, partially offset by decreases in life insurance costs.

Equity in net income of equity method investments increased 150% to ¥19,422 million compared to the same period of the previous fiscal year, and gains on sales of subsidiaries and equity method investments and liquidation losses, net decreased 76% to ¥6,308 million compared to the same period of the previous fiscal year.

Due to the above results, income before income taxes for the first consolidated period increased 29% to ¥155,480 million compared to ¥120,169 million during the same period of the previous fiscal year and net income attributable to ORIX Corporation shareholders increased 24% to ¥107,288 million compared to ¥86,735 million during the same period of the previous fiscal year.

 

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Segment Information

Total segment profits for the first consolidated period increased 20% to ¥164,867 million compared to the same period of the previous fiscal year.

Segment information for the first consolidated period is as follows:

Corporate Financial Services and Maintenance Leasing: Finance and fee business; leasing and rental of automobiles, electronic measuring instruments and ICT-related equipment

 

		Three months ended  June 30, 2024 (millions of yen)				Three months ended  June 30, 2025 (millions of yen)				Change
										Amount   (millions of yen)				Percent   (%)
Segment Profits			19,797				23,568				3,771				19
		As of March 31, 2025  (millions of yen)				As of June 30, 2025  (millions of yen)				Change
										Amount (millions of yen)				Percent (%)
Segment Assets			1,884,565				1,869,979				(14,586	)			(1	)

Segment profits increased 19% to ¥23,568 million compared to the same period of the previous fiscal year primarily due to increases in operating leases revenues and finance revenues.

Segment assets decreased 1% to ¥1,869,979 million compared to the end of the previous fiscal year primarily due to decreases in loans to ORIX and its subsidiaries and installment loans, partially offset by an increase in investment in operating leases.

Real Estate: Real estate development, rental and management; facility operations; real estate asset management

 

		Three months ended  June 30, 2024 (millions of yen)				Three months ended  June 30, 2025 (millions of yen)				Change
										Amount   (millions of yen)				Percent   (%)
Segment Profits			13,954				35,866				21,912				157
		As of March 31, 2025  (millions of yen)				As of June 30, 2025  (millions of yen)				Change
										Amount (millions of yen)				Percent (%)
Segment Assets			1,158,293				1,151,872				(6,421	)			(1	)

Segment profits increased 157% to ¥35,866 million compared to the same period of the previous fiscal year primarily due to an increase in services income.

Segment assets decreased 1% to ¥1,151,872 million compared to the end of the previous fiscal year primarily due to decreases in trade notes, accounts and other receivable and inventories, partially offset by increases in equity method investments and investment in operating leases.

 

- 4 -

PE Investment and Concession: Private equity investment and concession

 

		Three months ended  June 30, 2024 (millions of yen)				Three months ended  June 30, 2025 (millions of yen)				Change
										Amount   (millions of yen)				Percent   (%)
Segment Profits			32,027				24,004				(8,023	)			(25	)
		As of March 31, 2025  (millions of yen)				As of June 30, 2025  (millions of yen)				Change
										Amount (millions of yen)				Percent (%)
Segment Assets			1,022,944				1,054,540				31,596				3

Segment profits decreased 25% to ¥24,004 million compared to the same period of the previous fiscal year primarily due to the absence of gains on sales of subsidiaries and equity method investments recorded in the first quarter of the previous fiscal year as a result of the sale of investees, partially offset by an increase in equity in net income (loss) of equity method investments.

Segment assets increased 3% to ¥1,054,540 million compared to the end of the previous fiscal year primarily due to increases in equity method investments and property under facility operations and goodwill, intangible assets acquired in business combinations, partially offset by a decrease in cash and cash equivalents.

Environment and Energy: Domestic and overseas renewable energy; electric power retailing; ESCO services; sales of solar panels; recycling and waste management

 

		Three months ended  June 30, 2024 (millions of yen)				Three months ended  June 30, 2025 (millions of yen)				Change
										Amount   (millions of yen)				Percent   (%)
Segment Profits			(482	)			17,944				18,426				—
		As of March 31, 2025  (millions of yen)				As of June 30, 2025  (millions of yen)				Change
										Amount   (millions of yen)				Percent (%)
Segment Assets			1,016,175				992,589				(23,586	)			(2	)

Segment profits increased by ¥18,426 million to ¥17,944 million compared to the same period of the previous fiscal year primarily due to increases in gains on sales of subsidiaries and equity method investments, foreign exchange gains or losses, and gains on investment securities and dividends.

Segment assets decreased 2% to ¥992,589 million compared to the end of the previous fiscal year primarily due to a general decrease as a result of foreign exchange effects.

 

- 5 -

Insurance: Life insurance

 

		Three months ended  June 30, 2024 (millions of yen)				Three months ended  June 30, 2025 (millions of yen)				Change
										Amount   (millions of yen)				Percent   (%)
Segment Profits			21,944				24,063				2,119				10
		As of March 31, 2025  (millions of yen)				As of June 30, 2025  (millions of yen)				Change
										Amount (millions of yen)				Percent (%)
Segment Assets			3,009,234				3,047,702				38,468				1

Segment profits increased 10% to ¥24,063 million compared to the same period of the previous fiscal year primarily due to a decrease in life insurance costs, partially offset by a decrease in life insurance premiums and related investment income.

Segment assets increased 1% to ¥3,047,702 million compared to the end of the previous fiscal year primarily due to increases in reinsurance recoverables and investment in securities, partially offset by decreases in cash and cash equivalents and trade notes, accounts and other receivable.

Banking and Credit: Banking and consumer finance

 

		Three months ended  June 30, 2024 (millions of yen)				Three months ended  June 30, 2025 (millions of yen)				Change
										Amount   (millions of yen)				Percent   (%)
Segment Profits			6,398				9,939				3,541				55
		As of March 31, 2025  (millions of yen)				As of June 30, 2025 (millions of yen)				Change
										Amount   (millions of yen)				Percent   (%)
Segment Assets			3,144,571				3,216,471				71,900				2

Segment profits increased 55% to ¥9,939 million compared to the same period of the previous fiscal year primarily due to an increase in finance revenues.

Segment assets increased 2% to ¥3,216,471 million compared to the end of the previous fiscal year primarily due to increases in installment loans and investment securities.

 

- 6 -

Aircraft and Ships: Aircraft investment and management; ship-related finance and investment, maritime asset management and ship brokerage

 

		Three months ended  June 30, 2024 (millions of yen)				Three months ended  June 30, 2025 (millions of yen)				Change
										Amount   (millions of yen)				Percent   (%)
Segment Profits			11,764				9,882				(1,882)				(16	)
		As of March 31, 2025  (millions of yen)				As of June 30, 2025  (millions of yen)				Change
										Amount (millions of yen)				Percent (%)
Segment Assets			1,231,973				1,208,440				(23,533	)			(2	)

Segment profits decreased 16% to ¥9,882 million compared to the same period of the previous fiscal year primarily due to the absence of gains on sales of subsidiaries and equity method investments recorded in the first quarter of the previous fiscal year and a decrease in finance revenues in shipping business.

Segment assets decreased 2% to ¥1,208,440 million compared to the end of the previous fiscal year primarily due to a general decrease as a result of foreign exchange effects.

ORIX USA: Finance, investment and asset management in the Americas

 

		Three months ended  June 30, 2024 (millions of yen)				Three months ended  June 30, 2025 (millions of yen)				Change
										Amount   (millions of yen)				Percent   (%)
Segment Profits			11,835				648				(11,187	)			(95	)
		As of March 31, 2025  (millions of yen)				As of June 30, 2025  (millions of yen)				Change
										Amount (millions of yen)				Percent (%)
Segment Assets			1,593,939				1,588,197				(5,742	)			(0	)

Segment profits decreased 95% to ¥648 million compared to the same period of the previous fiscal year primarily due to a decrease in gains on sales of subsidiaries and equity method investments, the recognition of valuation losses on loans, and an increase in provision for credit losses.

Segment assets totaled ¥1,588,197 million, remaining relatively unchanged compared to the end of the previous fiscal year due to a general decrease as a result of foreign exchange effects, partially offset by increases in investment in securities and trade notes, accounts and other receivable.

 

- 7 -

ORIX Europe: Asset management of global equity and fixed income

 

		Three months ended  June 30, 2024 (millions of yen)				Three months ended  June 30, 2025 (millions of yen)				Change
										Amount   (millions of yen)				Percent   (%)
Segment Profits			11,154				9,946				(1,208	)			(11	)
		As of March 31, 2025  (millions of yen)				As of June 30, 2025  (millions of yen)				Change
										Amount (millions of yen)				Percent (%)
Segment Assets			669,306				716,077				46,771				7

Segment profits decreased 11% to ¥9,946 million compared to the same period of the previous fiscal year primarily due to a decrease in services income, partially offset by an increase in gains on investment securities and dividends.

Segment assets increased 7% to ¥716,077 million compared to the end of the previous fiscal year primarily due to a general increase as a result of foreign exchange effects and increases in cash and cash equivalents.

Asia and Australia: Finance and investment businesses in Asia and Australia

 

		Three months ended  June 30, 2024 (millions of yen)				Three months ended  June 30, 2025 (millions of yen)				Change
										Amount   (millions of yen)				Percent   (%)
Segment Profits			8,883				9,007				124				1
		As of March 31, 2025  (millions of yen)				As of June 30, 2025  (millions of yen)				Change
										Amount (millions of yen)				Percent (%)
Segment Assets			1,725,627				1,712,608				(13,019	)			(1)

Segment profits increased 1% to ¥9,007 million compared to the same period of the previous fiscal year primarily due to an increase in equity in net income (loss) of equity method investments in Asia and Australia, partially offset by a decrease in finance revenues in Greater China.

Segment assets decreased 1% to ¥1,712,608 million compared to the end of the previous fiscal year primarily due to decreases in cash and cash equivalents and installment loans and equity method investment, partially offset by an increase in investment in operating leases.

 

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(2) Consolidated Financial Condition

Summary of Assets, Liabilities, Shareholders’ Equity

 

				As of March 31, 2025				As of June 30, 2025				Change
												Amount				Percent
Total Assets		(millions of yen)			16,866,251				17,000,280				134,029				1	%
(Segment Assets)					16,456,627				16,558,475				101,848				1	%
Total Liabilities		(millions of yen)			12,691,036				12,773,412				82,376				1	%
(Short-term and Long-term Debt)					6,282,798				6,381,222				98,424				2	%
(Deposits)					2,449,812				2,562,032				112,220				5	%
Shareholders’ Equity *1		(millions of yen)			4,089,782				4,145,509				55,727				1	%
Shareholders’ Equity Per Share *2		(yen)			3,599.24				3,672.65				73.41				2	%

 

*1	Shareholders’ Equity refers to total ORIX Corporation Shareholders’ Equity based on U.S. GAAP.

*2	Shareholders’ Equity Per Share is calculated using total ORIX Corporation Shareholders’ Equity.

Total assets increased 1% to ¥17,000,280 million compared to the end of the previous fiscal year primarily due to increases in investment in operating leases, investment in securities and other assets (mainly reinsurance recoverable), partially offset by decreases in property under facility operations and inventories. In addition, segment assets increased 1% to ¥16,558,475 million compared to the end of the previous fiscal year.

Total liabilities increased 1% to ¥12,773,412 million compared to the end of the previous fiscal year primarily due to increases in deposits and short-term debt, partially offset by decreases in trade notes, accounts and other payable and policy liabilities and policy account balances.

Shareholders’ equity increased 1% to ¥4,145,509 million compared to the end of the previous fiscal year.

 

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2. Financial Information

(1) Condensed Consolidated Balance Sheets (Unaudited)

(millions of yen)

Assets				As of March 31, 2025				As of June 30, 2025
Cash and Cash Equivalents					1,206,573				1,206,661
Restricted Cash					115,410				115,447
Net Investment in Leases					1,167,380				1,184,590
Installment Loans					4,081,019				4,087,274
The amounts which are measured at fair value by electing the fair value option are as follows:
March 31, 2025		¥97,694 million
June 30, 2025		¥95,155 million
Allowance for Credit Losses					(56,769	)			(57,181	)
Investment in Operating Leases					1,967,178				2,013,427
Investment in Securities					3,234,547				3,290,297
The amounts which are measured at fair value by electing the fair value option are as follows:
March 31, 2025		¥41,018 million
June 30, 2025		¥40,177 million
The amounts which are associated to available-for-sale debt securities are as follows:
March 31, 2025
Amortized Cost		¥3,174,036 million
Allowance for Credit Losses		¥(670) million
June 30, 2025
Amortized Cost		¥3,286,194 million
Allowance for Credit Losses		¥(630) million
Property under Facility Operations					771,851				758,818
Equity method investments					1,320,015				1,315,546
Trade Notes, Accounts and Other Receivable					411,012				406,777
Inventories					229,229				214,732
Office Facilities					191,957				191,236
Other Assets					2,226,849				2,272,656
The amounts which are measured at fair value by electing the fair value option are as follows:
March 31, 2025		¥2,586 million
June 30, 2025		¥2,036 million
Total Assets					16,866,251				17,000,280
Liabilities and Equity
Short-term Debt					549,680				629,908
Deposits					2,449,812				2,562,032
Trade Notes, Accounts and Other Payable					339,787				314,926
Policy Liabilities and Policy Account Balances					1,948,047				1,838,581
The amounts which are measured at fair value by electing the fair value option are as follows:
March 31, 2025		¥136,257 million
June 30, 2025		¥140,084 million
Current and Deferred Income Taxes					578,781				603,625
Long-term Debt					5,733,118				5,751,314
Other Liabilities					1,091,811				1,073,026
Total Liabilities					12,691,036				12,773,412
Redeemable Noncontrolling Interests					3,432				3,422
Commitments and Contingent Liabilities
Common Stock					221,111				221,111
Additional Paid-in Capital					234,193				234,325
Retained Earnings					3,354,911				3,396,279
Accumulated Other Comprehensive Income					341,298				378,458
Treasury Stock, at Cost					(61,731	)			(84,664	)
Total ORIX Corporation Shareholders’ Equity					4,089,782				4,145,509
Noncontrolling Interests					82,001				77,937
Total Equity					4,171,783				4,223,446
Total Liabilities and Equity					16,866,251				17,000,280

 

- 10 -

Note:

Breakdown of Accumulated Other Comprehensive Income (Loss)

 

		As of March 31, 2025				As of June 30, 2025
Accumulated Other Comprehensive Income (Loss)
Net unrealized gains (losses) on investment in securities			(403,914	)			(465,271	)
Impact of changes in policy liability discount rate			416,124				559,244
Debt valuation adjustments			49				111
Defined benefit pension plans			14,791				20,258
Foreign currency translation adjustments			304,657				261,587
Net unrealized gains on derivative instruments			9,591				2,529
Total			341,298				378,458

 

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(2) Condensed Consolidated Statements of Income (Unaudited)

(millions of yen)

		Three months ended June 30, 2024				Three months ended June 30, 2025
Revenues :
Finance revenues			83,007				87,238
Gains on investment securities and dividends			3,287				16,516
Operating leases			141,786				152,076
Life insurance premiums and related investment income			144,409				132,543
Sales of goods and real estate			100,917				110,952
Services income			234,733				269,316
Total Revenues			708,139				768,641
Expenses :
Interest expense			45,006				45,362
Costs of operating leases			93,381				99,784
Life insurance costs			110,112				94,237
Costs of goods and real estate sold			72,768				83,302
Services expense			136,860				148,670
Other (income) and expense			4,876				(1,010	)
Selling, general and administrative expenses			156,284				164,052
Provision for credit losses			2,498				3,363
Write-downs of long-lived assets			88				1,004
Write-downs of securities			0				127
Total Expenses			621,873				638,891
Operating Income			86,266				129,750
Equity in Net Income of Equity method investments			7,756				19,422
Gains on Sales of Subsidiaries and Equity method investments and Liquidation Losses, net			26,147				6,308
Income before Income Taxes			120,169				155,480
Provision for Income Taxes			35,005				46,209
Net Income			85,164				109,271
Net Income (Loss) Attributable to the Noncontrolling Interests			(1,652	)			1,933
Net Income Attributable to the Redeemable Noncontrolling Interests			81				50
Net Income Attributable to ORIX Corporation Shareholders			86,735				107,288

 

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(3) Condensed Consolidated Statements of Comprehensive Income (Unaudited)

 

						(millions of yen)
		Three months ended June 30, 2024				Three months ended June 30, 2025
Net Income :			85,164				109,271
Other comprehensive income (loss), net of tax:
Net change of unrealized gains (losses) on investment in securities			(80,105	)			(61,363	)
Impact of changes in policy liability discount rate			76,639				143,120
Net change of debt valuation adjustments			442				62
Net change of defined benefit pension plans			46				5,465
Net change of foreign currency translation adjustments			126,833				(44,298	)
Net change of unrealized gains (losses) on derivative instruments			270				(7,172	)
Total other comprehensive income			124,125				35,814
Comprehensive Income			209,289				145,085
Comprehensive Income Attributable to the Noncontrolling Interests			1,935				701
Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests			239				(64	)
Comprehensive Income Attributable to ORIX Corporation Shareholders			207,115				144,448

(4) Assumptions for Going Concern

There is no corresponding item.

(5) Significant Changes in Shareholders’ Equity

There is no corresponding item.

(6) Changes in Accounting Policies

There are no changes in accounting policies.

 

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(7) Segment Information (Unaudited)

The Group CEO, as the Chief Operating Decision Maker (“CODM”), regularly assesses segment performance and allocates management resources by using the amount equivalent to income before income taxes attributable to ORIX Corporation Shareholders of each business segment.

An overview of the operations for each of the ten operating segments follows below.

 

Corporate Financial Services and Maintenance Leasing		:		Finance and fee business; leasing and rental of automobiles, electronic measuring instruments and ICT-related equipment
Real Estate		:		Real estate development, rental and management; facility operations; real estate asset management
PE Investment and Concession		:		Private equity investment and concession
Environment and Energy		:		Domestic and overseas renewable energy; electric power retailing; ESCO services; sales of solar panels; recycling and waste management
Insurance		:		Life insurance
Banking and Credit		:		Banking and consumer finance
Aircraft and Ships		:		Aircraft investment and management; ship-related finance and investment, maritime asset management and ship brokerage
ORIX USA		:		Finance, investment and asset management in the Americas
ORIX Europe		:		Asset management of global equity and fixed income
Asia and Australia		:		Finance and investment businesses in Asia and Australia

The accounting policies of the segments are almost the same as accounting policies for condensed consolidated financial statements except for the treatment of income tax expenses, net income attributable to noncontrolling interests, and net income attributable to redeemable noncontrolling interests. The chief operating decision maker evaluates segment performance based on the amount equivalent to income before income taxes attributable to ORIX Corporation shareholders. Therefore, net income attributable to noncontrolling interests, net income attributable to redeemable noncontrolling interests, and income tax expenses are not included in segment profit or loss. Most of selling, general and administrative expenses, including compensation costs that are directly related to the revenue generating activities of each segment and excluding the expenses that should be borne by ORIX Group as a whole, have been accumulated by and charged to each segment. Gains and losses that management does not consider for evaluating the performance of the segments, such as certain interest expenses and certain foreign exchange gains or losses (included in other (income) and expense) are excluded from the segment profits or losses, and are regarded as corporate items.

Assets attributed to each segment are total assets except for certain cash and head office assets.

 

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Segment information for the three months ended June 30, 2024 and three months ended June 30, 2025 is as follows:

 

		Millions of yen
		Three months ended June 30, 2024
		Corporate Financial Services and Maintenance Leasing				Real Estate				PE Investment and Concession				Environment and Energy				Insurance				Banking and Credit				Aircraft and Ships
Finance revenues			15,219				1,263				2,966				294				84				14,129				1,807
Gains on investment securities and dividends			1,277				143				331				(10	)			0				131				8
Operating leases			68,382				13,551				10,343				20				0				0				14,695
Life insurance premiums and related investment income			0				0				0				0				144,946				0				0
Sales of goods and real estate			881				33,275				64,185				701				0				0				59
Services income			26,698				69,111				16,121				37,593				(1	)			638				2,383
Total Segment Revenues			112,457				117,343				93,946				38,598				145,029				14,898				18,952
Interest expense			1,572				575				817				3,113				28				1,310				3,345
Costs of operating leases			48,810				6,087				6,544				5				0				0				6,180
Life insurance costs			0				0				0				0				109,328				0				0
Costs of goods and real estate sold			725				25,939				44,658				389				0				0				59
Services expense			14,733				59,750				11,169				27,155				0				2,385				480
Other (income) and expense			4,294				266				(114	)			175				(33	)			(86	)			(102	)
Selling, general and administrative expenses			22,790				10,853				21,015				5,205				13,761				5,355				2,516
Provision for credit losses, and write-downs of long-lived assets and securities			176				(28	)			39				22				1				119				(0	)
Total Segment Expenses			93,100				103,442				84,128				36,064				123,085				9,083				12,478
Equity in Net income (Loss) of equity method investments and others			440				53				22,209				(3,016	)			(0	)			583				5,290
Segment Profits			19,797				13,954				32,027				(482	)			21,944				6,398				11,764
Significant non-cash items:
Depreciation and amortization			38,793				4,741				6,574				8,018				2,339				193				5,385
Increase in policy liabilities and policy account balances			0				0				0				0				51,573				0				0
Expenditures for long-lived assets			47,087				24,905				4,406				8,834				0				0				82,218
		Millions of yen
		Three months ended June 30, 2024
		ORIX USA				ORIX Europe				Asia and Australia				Total
Finance revenues			27,504				801				19,212				83,279
Gains on investment securities and dividends			153				1,164				116				3,313
Operating leases			139				0				33,373				140,503
Life insurance premiums and related investment income			0				0				0				144,946
Sales of goods and real estate			172				0				217				99,490
Services income			11,619				62,137				6,682				232,981
Total Segment Revenues			39,587				64,102				59,600				704,512
Interest expense			11,684				193				10,746				33,383
Costs of operating leases			273				0				24,544				92,443
Life insurance costs			0				0				0				109,328
Costs of goods and real estate sold			92				0				197				72,059
Services expense			541				16,255				4,138				136,606
Other (income) and expense			(889	)			2,954				(379	)			6,086
Selling, general and administrative expenses			23,471				34,239				10,974				150,179
Provision for credit losses, and write-downs of long-lived assets and securities			306				0				1,950				2,585
Total Segment Expenses			35,478				53,641				52,170				602,669
Equity in Net income (Loss) of equity method investments and others			7,726				693				1,453				35,431
Segment Profits			11,835				11,154				8,883				137,274
Significant non-cash items:
Depreciation and amortization			908				1,690				23,915				92,556
Increase in policy liabilities and policy account balances			0				0				0				51,573
Expenditures for long-lived assets			225				0				41,939				209,614

 

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		Millions of yen
		Three months ended June 30, 2025
		Corporate Financial Services and Maintenance Leasing				Real Estate				PE Investment and Concession				Environment and Energy				Insurance				Banking and Credit				Aircraft and Ships
Finance revenues			18,002				1,157				3,202				276				38				21,017				928
Gains on investment securities and dividends			1,636				515				269				4,713				0				30				200
Operating leases			73,661				13,629				8,606				21				0				0				21,156
Life insurance premiums and related investment income			0				0				0				0				133,086				0				0
Sales of goods and real estate			1,046				43,513				63,889				689				0				0				266
Services income			27,605				98,145				18,662				43,632				0				623				5,178
Total Segment Revenues			121,950				156,959				94,628				49,331				133,124				21,670				27,728
Interest expense			2,749				1,219				1,182				3,285				127				3,859				5,363
Costs of operating leases			51,172				6,208				5,620				5				0				0				11,797
Life insurance costs			0				0				0				0				94,395				0				0
Costs of goods and real estate sold			851				36,189				44,685				442				0				0				231
Services expense			15,038				65,437				12,569				30,743				0				2,254				2,346
Other (income) and expense			5,808				293				(4,031	)			(5,857	)			(4	)			58				309
Selling, general and administrative expenses			23,530				12,039				22,690				6,563				14,563				5,888				3,248
Provision for credit losses, and write-downs of long-lived assets and securities			135				28				913				3				(20	)			119				(1	)
Total Segment Expenses			99,283				121,413				83,628				35,184				109,061				12,178				23,293
Equity in Net income (Loss) of equity method investments and others			901				320				13,004				3,797				(0	)			447				5,447
Segment Profits			23,568				35,866				24,004				17,944				24,063				9,939				9,882
Significant non-cash items:
Depreciation and amortization			40,658				4,689				5,194				7,952				7,812				(109	)			8,415
Increase in policy liabilities and policy account balances			0				0				0				0				83,836				0				0
Expenditures for long-lived assets			57,351				13,944				4,881				17,293				11				6				74,864
		Millions of yen
		Three months ended June 30, 2025
		ORIX USA				ORIX Europe				Asia and Australia				Total
Finance revenues			24,775				736				17,418				87,549
Gains on investment securities and dividends			4,204				4,810				164				16,541
Operating leases			436				0				33,175				150,684
Life insurance premiums and related investment income			0				0				0				133,086
Sales of goods and real estate			187				0				289				109,879
Services income			10,637				57,997				5,474				267,953
Total Segment Revenues			40,239				63,543				56,520				765,692
Interest expense			11,750				128				9,405				39,067
Costs of operating leases			550				0				23,643				98,995
Life insurance costs			0				0				0				94,395
Costs of goods and real estate sold			87				0				261				82,746
Services expense			534				16,279				3,559				148,759
Other (income) and expense			533				1,792				8				(1,091	)
Selling, general and administrative expenses			22,166				35,457				10,869				157,013
Provision for credit losses, and write-downs of long-lived assets and securities			1,547				0				1,771				4,495
Total Segment Expenses			37,167				53,656				49,516				624,379
Equity in Net income (Loss) of equity method investments and others			(2,424	)			59				2,003				23,554
Segment Profits			648				9,946				9,007				164,867
Significant non-cash items:
Depreciation and amortization			637				1,668				22,785				99,701
Increase in policy liabilities and policy account balances			0				0				0				83,836
Expenditures for long-lived assets			713				189				46,526				215,778

 

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