Japan Investment Adviser (7172): FY2025 Results Summary — Operating Profit Up 55.9% as Equity Sales Hit a Record; Further Record Profits Forecast for FY2026

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Japan Investment Adviser Co., Ltd. (Prime Market of the Tokyo Stock Exchange, Stock Code: 7172), a financial-solutions group centered on the Operating Lease Business, reported FY2025 consolidated net sales of 38,738 million yen, up 24.4% year on year, with profit attributable to owners of parent rising 30.9% to 10,542 million yen. The company states that all kinds of profits reached the annual forecasts. The total amount of equity sales reached 151,447 million yen, and equity sales in the Operating Lease Business reached the forecast for the final fiscal year of the 3-year medium-term plan one year earlier than forecast. In this article, FY2025 refers to the fiscal year ended December 31, 2025 (the company’s fiscal year-end is December 31).

Consolidated Results (Full-Year Actual)

Net sales grew 24.4% to 38,738 million yen and operating profit rose 55.9% to 18,884 million yen. Gross profit increased 39.9% to 29,140 million yen, with the gross profit margin at 75.2% (66.9% in FY2024). Against the fiscal-year forecasts, progress rates were 105.1% for net sales, 104.2% for operating profit, 105.0% for ordinary profit and 100.4% for profit attributable to owners of parent. On the non-operating side, foreign exchange losses were 159 million yen (versus gains of 1,267 million yen in the previous fiscal year); the company hedged most of its foreign currency-denominated asset exposure with forward exchange transactions in the third quarter of FY2025, so the non-operating exchange gain from October to December was only 241 million yen despite the yen weakening significantly in that period. Sales of real estate fractional ownership products rose 76.1% to 3,725 million yen but fell below the 8,500 million yen forecast (progress rate 43.8%), due to the changes in the market environment before the revision to the taxation system.

Item (Millions of yen)	FY2025	FY2024	Change	Change (%)
Net Sales	38,738	31,129	7,608	24.4%
Operating profit	18,884	12,110	6,773	55.9%
Ordinary profit	16,625	11,635	4,989	42.9%
Profit attributable to owners of parent	10,542	8,055	2,486	30.9%
Total amount of equity sales	151,447	113,106	38,340	33.9%
Total amount of fractional real estate investment sales	3,725	2,115	1,610	76.1%

Segment Results

The Operating Lease Business remained the core earnings driver, with sales of 32,974 million yen (up 16.7%), accounting for 85.1% of total sales. In that business, equity sales rose year on year for the 13th consecutive quarter in October–December, and the amount of deals structured for the full year (Operating Lease Business and Renewable Energy Business) reached 546,817 million yen across 59 deals, up from 287,880 million yen across 40 deals in FY2024. By asset type, equity sales were 119,943 million yen for aircraft, 19,077 million yen for vessels, 11,226 million yen for container boxes and 1,200 million yen for solar photovoltaic generation. The equity sales share of products other than aircraft was 20.2% in 2025, and the company aims to increase the composition of lease assets other than aircraft to around 30% in the future. The balance of equities underwritten stood at 136,482 million yen (50 deals) at the end of December 2025, which the company describes as inventory secured for sustainable growth in the next fiscal year. The Private Equity Investment Business grew sales more than sixfold to 713 million yen, and in the Real Estate Business the company suspended the creation of new fractional-ownership deals in December 2025 and started redeveloping the business in response to the changes in the market environment before the revision to the taxation system.

Business unit (Millions of yen)	FY2025	FY2024	YoY change (%)	Composition ratio
Operating Lease Business	32,974	28,255	16.7%	85.1%
Real Estate Business	518	276	87.7%	1.3%
Renewable Energy Business	1,256	1,054	19.1%	3.2%
Private Equity Investment Business	713	114	521.4%	1.8%
Other Business	3,275	1,428	129.2%	8.5%
Total	38,738	31,129	24.4%	100.0%

FY2026 Forecast

For FY2026 (fiscal year ending December 31, 2026), all kinds of profits are expected to hit a record high. Equity sales of the Operating Lease Business are projected to be 180 billion yen, up 30 billion yen from the amount in the medium-term plan. The company is redesigning the plan for selling real estate fractional ownership products, and has hedged against the impact of exchange rate fluctuations on profit and loss as a whole by concluding forward exchange contracts, so the impact of fluctuations of the dollar-yen exchange rate is expected to be limited.

Item (Millions of yen)	FY2026 Forecast	YoY Change
Net Sales	48,960	10,221
Operating profit	23,580	4,695
Ordinary profit	19,670	3,044
Profit attributable to owners of parent	13,000	2,457
Total amount of equity sales	180,000	28,552

Shareholder Returns

The company has transitioned to a shareholder return policy that emphasizes capital efficiency and aims to achieve a payout ratio of 50% or more. For FY2025, the planned annual dividend is 87 yen per share (interim 43 yen), for a payout ratio of 50.0% and a dividend on equity of 7.5%; the year-end dividend for 2025 will be determined at the 20th general meeting of shareholders to be held in March 2026. For FY2026, with profit expected to hit a record high, the dividend forecast has been revised upward to 108 yen per share (interim 54 yen), for a payout ratio of 50.3% and a dividend on equity of 8.5%. The company also maintains a shareholder benefit plan, in place since the end of fiscal year 2015, providing Quo cards and/or subscriptions to the Nihon Securities Journal Digital based on the number of shares held and the duration of continuous holding.

Item	2024 results	2025 Plans	2026 Plans
Dividend per share (Interim)	27 yen (12 yen)	87 yen (43 yen)	108 yen (54 yen)
Total annual dividend (Million yen)	1,633	5,267	6,539
Payout ratio	20.3%	50.0%	50.3%
Dividend on equity	2.9%	7.5%	8.5%

Medium-Term Plan / Topics

Under the mid-term three-year plan (2024–2026), performance exceeded the forecasts for the first and second years, but performance is projected to fall below the initial forecast for the final year: the FY2026 forecast was revised to net sales of 48,960 million yen (original plan: 69,400 million yen) and net profit of 13,000 million yen (original plan: 25,000 million yen). The company attributes this to the delay in development of its next core business and says it will strive to redevelop it as soon as possible. Among the important indicators, the composition of sales other than the operating lease business was 15% in FY2025 (revised FY2026 target: 17%, versus about 30% in the three-year plan), ROE was 15.0% in FY2025 (revised FY2026 target: 16.9%, versus 25% or more in the plan), and the dividend payout ratio was 50.0% in FY2025. The main strategic points for 2026 are to diversify the Operating Lease Business, redevelop the Real Estate Business, and expand the business portfolio. As topics, the company raised its capital contribution ratio in Intertrade Co., Ltd. (Standard Market of TSE: 3747) to 12% on January 30, 2026, expecting to improve its knowledge in the financial IT field, and it continues to promote SDGs through donation-type private placement bonds, having issued a total of 13.1 billion yen since 2019.

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.