Japan's Big 5 Leasing Firms FY2026 Full Year: ORIX leads, Fuyo Lease hit by green losses

The fiscal year ending March 2026 marked a major turning point for Japan's leasing sector. While all five companies expanded their revenues, their profitability diverged sharply. Three key themes drove the market:

• Monetization of overseas assets accelerated, with the success of aircraft leasing and foreign investments drawing a line between winners and losers.
• Rising interest rates drove up funding costs, testing each firm's ability to raise capital as Japan's low-interest-rate era came to an end.
• Asset recycling became highly prevalent, with companies transitioning to a high-efficiency business model by selling off real estate and renewable energy assets for profit.

The standout performer of the period was ORIX, which posted an overwhelming revenue of 3,330.8 billion yen (up 15.9% year on year) and an operating profit of 456.2 billion yen (up 37.5%). The company generated massive gains from selling a renewable energy firm in India, maintaining its position as the undisputed market leader by successfully balancing investment and asset operations.

Conversely, Fuyo Lease struggled the most. Although its revenue rose 16.3% to 788.7 billion yen, its net profit plunged 52.4% to 21.6 billion yen. A hefty 28.2 billion yen loss in its Spanish renewable energy business dragged down its bottom line, highlighting a sharp contrast in how the firms managed overseas risk despite solid core earning power.

The other three players also demonstrated their unique market strategies:

• Mitsubishi HC Capital reaped the benefits of its integration. Revenue reached 2,215.4 billion yen (up 6%), while net profit hit a record high of 162.2 billion yen (up 20%). Capitalizing on strong demand in aviation and shipping containers, the company plans its 28th consecutive annual dividend increase.
• Tokyo Century successfully cleaned up its balance sheet, with net profit surging 30.5% to 1,113 billion yen. In a shrewd managerial move, it used insurance settlement payouts from aircraft leases to offset asset impairments, clearing major future uncertainties.
• Mizuho Leasing posted a remarkable 32.5% jump in revenue to 921.6 billion yen, the fastest growth in the sector. However, its operating profit fell 8.8% to 44.7 billion yen due to rising labor costs and higher funding expenses from rising interest rates.

While all five firms grew their top-line revenues, they must prepare for several headwind factors:

• Higher funding costs driven by rising domestic and global interest rates
• Geopolitical risks and project delays in overseas ventures
• Declines in lease asset values during potential economic downturns

The leasing sector is shifting away from traditional asset renting toward active business investment. This transformation offers unique opportunities:

• Abundant opportunities to build a global career.
• Direct involvement in business operations, unlike traditional commercial banking.
• A fast-paced environment where professionals can master management and investment skills.

For those looking to learn both finance and hands-on business management, the leasing sector is currently an ideal destination.