T&D Holdings (8795): FY2025 Results Summary — Record Group Adjusted Profit and 12th Consecutive Dividend Increase

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T&D Holdings, Inc. reported record-high Group adjusted profit of ¥158.5 billion for the fiscal year ended March 31, 2026, up ¥18.4 billion year on year and exceeding the full-year forecast of ¥146.0 billion. Adjusted ROE rose to 10.5%, and Group EV increased ¥292.9 billion to ¥4,238.6 billion with ROEV of 12.1% and ESR of 222%. For the fiscal year ending March 2027, the company forecasts Group adjusted profit of ¥172.0 billion and has set dividend per share at ¥164, marking the 12th consecutive fiscal year of expected dividend increase.

Consolidated Results (Full-Year Actual)

Ordinary revenues decreased 6.7% year on year to ¥3,482.2 billion, while ordinary profit increased 29.5% to ¥257.1 billion and profit attributable to owners of parent rose 10.0% to ¥138.9 billion. Group adjusted profit reached ¥158.5 billion (+¥18.4 billion, +13.1% YoY), surpassing the FY2025 forecast (after revision) of ¥146.0 billion by ¥12.5 billion.

Item	FY2025	FY2024	Change
Ordinary revenues	¥3,482.2 billion	¥3,730.4 billion	-¥248.2 billion (-6.7%)
Ordinary profit	¥257.1 billion	¥198.5 billion	+¥58.5 billion (+29.5%)
Profit attributable to owners of parent (Net income)	¥138.9 billion	¥126.3 billion	+¥12.5 billion (+10.0%)
Group adjusted profit	¥158.5 billion	¥140.0 billion	+¥18.4 billion (+13.1%)
Adjusted ROE	10.5%	9.6%	+0.9pt
Value of new business	¥169.0 billion	¥166.1 billion	+¥2.9 billion
ROEV	12.1%	5.2%	+6.9pt

Segment Results

Group adjusted profit growth was led by Daido Life, up 25.4% to ¥91.0 billion, and T&D Financial Life, up 97.1% to ¥7.7 billion. Taiyo Life’s Group adjusted profit was roughly flat at ¥52.2 billion (+0.8%). T&D United Capital’s Group adjusted profit declined ¥1.8 billion to ¥10.7 billion, while its ordinary profit (loss) improved to ¥(1.8) billion from ¥(1.9) billion; profit and loss of the closed book business (Fortitude Re and Viridium) within T&D United Capital’s adjusted profit was ¥16.3 billion, up ¥0.4 billion year on year.

Segment	Metric	FY2025	FY2024
Taiyo Life	Group adjusted profit	¥52.2 billion	¥51.8 billion
Daido Life	Group adjusted profit	¥91.0 billion	¥72.6 billion
T&D Financial Life	Group adjusted profit	¥7.7 billion	¥3.9 billion
T&D United Capital	Group adjusted profit	¥10.7 billion	¥12.6 billion
Taiyo Life	Value of new business	¥27.4 billion	¥27.2 billion
Daido Life	Value of new business	¥132.6 billion	¥130.0 billion
T&D Financial Life	Value of new business	¥8.9 billion	¥8.8 billion

FY2026 Forecast

For the fiscal year ending March 31, 2027, T&D Holdings forecasts Group adjusted profit of ¥172.0 billion (+¥13.4 billion YoY) and Adjusted ROE of 11% (+0.5pt). Value of new business is forecast at ¥172.0 billion (+¥2.9 billion). Reference net income is forecast at ¥135.0 billion, down ¥3.9 billion from FY2025’s ¥138.9 billion. By company, forecast Group adjusted profit is ¥54.0 billion for Taiyo Life, ¥88.0 billion for Daido Life, ¥8.0 billion for T&D Financial Life, and ¥26.0 billion for T&D United Capital.

Item	Forecast	FY2025 (Actual)
Group adjusted profit	¥172.0 billion	¥158.5 billion
Adjusted ROE	11%	10.5%
Value of new business	¥172.0 billion	¥169.0 billion
Net income (reference)	¥135.0 billion	¥138.9 billion

Shareholder Returns

Dividend per share for FY2026 is forecast at ¥164, up ¥34 from FY2025’s ¥130, marking the 12th consecutive fiscal year of expected dividend increase. The FY2026 forecast comprises an interim dividend of ¥82 and a year-end dividend of ¥82. Under the shareholder return policy, cash dividends target a payout ratio of approximately 60% of the 5-year average Group adjusted profit, with a commitment in principle not to cut dividends. Including share buybacks, the company aims for a total payout ratio of approximately 60% of adjusted earnings over the medium to long term during the Group’s long-term vision period, taking into account growth investment opportunities and ESR levels; when ESR consistently exceeds 225%, additional returns will be considered.

Item	FY2025 (Actual)	FY2026 (Forecast)
Dividend per share	¥130.0	¥164.0
Interim dividend	¥62.0	¥82.0
Year-end dividend	¥68.0	¥82.0

Medium-Term Plan / Topics

ESR (economic solvency ratio, internal model basis) was 222% as of March 31, 2026, down from 225% a year earlier, as surplus increased but economic capital rose due to increased mass surrender risk from rising domestic interest rates and investment in Viridium; the required level is 133%. As an interim target, the company aims to reduce strategic shareholdings by 40% by the end of March 2028 compared to the end of March 2026, and to reduce the balance to zero by the end of March 2031, except for shares held for business partners and collaborators. During FY2025 the company sold approximately ¥296.0 billion of domestic and foreign equities on a full-year basis (Taiyo: approx. ¥170.0 billion, Daido: approx. ¥126.0 billion), and the JGB portfolio rebalancing implemented during the fiscal year is expected to increase interest income by approximately ¥6.5 billion on an annual basis.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.