J-Lease (7187): FY2025 Results Summary — Record Sales and Profit with Seven Consecutive Years of Growth

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

Note: J-Lease’s most recent completed fiscal year is the fiscal year ended March 31, 2026, which this site classifies as FY2025; labels in this article follow the company’s presentation materials.

J-Lease Co., Ltd. (7187), which operates residential and business rent guarantee services, reported net sales of 21,574 million yen (+24.9% YoY) and operating profit of 3,624 million yen (+16.8% YoY) for the fiscal year ended March 31, 2026, with both hitting record highs. Sales, profit, and profit margin all exceeded the company plan, and the company achieved seven consecutive years of higher sales and profit. According to the materials, this performance also enabled the company to achieve its three-year business plan one year ahead of schedule.

Consolidated Results (Full-Year Actual)

Net sales continued to grow at a double-digit pace, supported by strong performance in mainstay residential and business rent guarantees and by the contribution of sales from K-net, which became a subsidiary in April 2025. All profits posted record highs, as higher bad debt-related expenses arising from an increase in the number of contracts, an increase in administrative fees (cost of sales) resulting from intensifying competition, and an increase in goodwill amortization arising from M&As were absorbed by sales growth. The materials note that figures for the year ended March 31, 2025 reflect retrospective application due to changes in presentation method following the establishment of J-Lease Football Club Co., Ltd. (spin-off).

Item (Millions of yen)	Year ended March 31, 2025 Results	Year ended March 31, 2026 Plan	Year ended March 31, 2026 Results	YoY change	Versus plan
Net sales	17,269	21,000	21,574	+24.9%	+2.7%
Operating profit	3,103	3,500	3,624	+16.8%	+3.5%
Operating profit margin	18.0%	16.7%	16.8%	-1.2pt	+0.1pt
Ordinary profit	3,097	3,450	3,590	+15.9%	+4.1%
Profit attributable to owners of parent	2,089	2,290	2,470	+18.3%	+7.9%

Performance of Main Businesses

Both residential and business rent guarantee sales reached record highs. Residential rent guarantee sales grew significantly, up 29.1% YoY to 11,996 million yen, with K-net also contributing to higher sales; new transactions increased due to the strengthening of human resources in the Tokyo metropolitan area, human resource development, and the formation of alliances. Business rent guarantee sales rose 22.8% YoY to 4,525 million yen, as the company further focused on sales activities in the Tokyo metropolitan area against a backdrop of risk avoidance among real estate owners, and contract unit prices increased due to growth in guarantees for high-value properties. The sales composition ratio for the fiscal year was 55.6% residential rent guarantee, 21.0% business rent guarantee, and 23.4% other, with medical expense guarantees, IT-related business, and real-estate-related business remaining strong.

Business (Millions of yen)	Year ended March 31, 2025	Year ended March 31, 2026	YoY change
Residential rent guarantee	9,289	11,996	+29.1%
Business rent guarantee	3,683	4,525	+22.8%

Key performance indicators for the guarantee-related business (J-lease alone, excluding K-net) were as follows. The subrogation incidence rate remained in line with the plan through measures such as credit screening based on AI analysis, and the subrogation recovery rate was brought to a level 0.6pt above the full-year plan through attentive customer service and other efforts. Aiming to open branches in all 47 prefectures, the company opened the Mie Branch in June 2025, the Yamagata Branch in September 2025, and the Aomori Branch and Akita Branch in March 2026.

KPI (J-lease alone)	Year ended March 31, 2025 Results	Year ended March 31, 2026 Results	YoY
Number of real estate company agreements (thousands)	28	31	+9.2%
Number of applications (thousands)	296	321	+8.6%
Average contract rent for residential use (yen)	69,668	72,782	+4.5%
Average contract rent for business use (yen)	168,101	184,210	+9.6%
Subrogation incidence rate	6.3%	6.5%	+0.2pt
Subrogation recovery rate	97.4%	97.4%	+0.0pt
Balance of advance subrogation payments (millions of yen)	7,177	8,562	+19.3%
Number of stores (stores)	40	44	+4 stores
Number of prefectures with stores	37	41	+4 prefectures
Number of employees (persons)	437	451	+14 persons

Group Companies and Businesses in Development

K-net Co., Ltd. (guarantee-related business; K-net alone, consolidated since May 2025) recorded net sales of 1,378 million yen against a full-year plan of 1,580 million yen and operating profit of 46 million yen against a full-year plan of 10 million yen, and various measures for generating synergy — including expansion of the whole-building guarantee service leveraging J-lease’s nationwide branch network — are underway. AIVS (IT-related business; AIVS alone, consolidated since May 2024) posted net sales of 1,526 million yen (-17.4% YoY) and operating profit of 194 million yen (+56.4% YoY); although net sales declined due in part to a single large-scale order of 480 million yen in the previous fiscal year, profit increased substantially as a result of prioritizing profitability and winning a large number of high-margin deals.

Among businesses in development, medical expense guarantees posted net sales of 189 million yen (+26.8% YoY), with 55 newly contracted medical institutions from April 2025 to March 2026. The real-estate-related business (subsidiary Asumirai, engaged in real estate brokerage for foreign nationals) recorded net sales of 690 million yen (+130.4% YoY) driven by strong performance in renovation and resale and real estate for sale, and operating profit turned to a profit of 11 million yen for the full year (against a loss of 38 million yen for the previous year).

Plan for the Fiscal Year Ending March 31, 2027

For the fiscal year ending March 31, 2027, the company plans net sales of 24,859 million yen (+15.2% YoY) and operating profit of 3,856 million yen (+6.4% YoY), aiming to absorb upfront investment with the effect of higher sales and renew the record-high profit; the operating profit margin is planned at 15.5%. Selling, general and administrative expenses will rise by approximately 300 million yen year on year due to strategic investments, including the introduction of a new HR system from April 2026 (+135 million yen YoY), development costs of a new core system that will serve as the foundation for AI utilization (+121 million yen YoY), and the expansion of the Tokyo head office floor space in April 2026 (+40 million yen YoY). Operating profit will decline in the first half due to strategic investments, but is expected to grow for the full year on the back of higher sales. The subrogation incidence rate is expected to be 6.7% (6.5% in the previous fiscal year) and the recovery rate 96.8% (97.4% in the previous fiscal year).

Item (Millions of yen)	FYE Mar 2026	FYE Mar 2027 (plan)	YoY change
Net sales	21,574	24,859	+15.2%
Operating profit	3,624	3,856	+6.4%
Operating profit margin	16.8%	15.5%	—

By business (on a non-consolidated basis, excluding amortization of goodwill, etc.), all businesses are expected to perform solidly.

Business	Metric (Millions of yen)	FYE Mar 2026	FYE Mar 2027 (plan)	Change
Guarantee-related business	Net sales	19,319	22,394	+15.9%
Guarantee-related business	Operating profit	3,683	3,909	+6.1%
Real-estate-related business	Net sales	690	740	+7.3%
Real-estate-related business	Operating profit	11	45	+287.5%
IT-related business	Net sales	1,526	1,730	+13.3%
IT-related business	Operating profit	194	165	-15.3%
Others (AFB: advertising agency, J-Lease Football Club)	Net sales	323	476	+47.5%
Others (AFB: advertising agency, J-Lease Football Club)	Operating profit	4	25	+483.1%

Shareholder Returns

The final dividend for the fiscal year ending March 2026 was increased from 25 yen to 30 yen, bringing the annual dividend to 55.0 yen (interim 25.0 yen, fiscal year-end 30.0 yen). For the fiscal year ending March 31, 2027, the company forecasts an annual dividend of 60.0 yen (interim 30.0 yen, fiscal year-end 30.0 yen), planning to raise dividends for the seventh consecutive year. The company will provide shareholder returns based on a dividend payout ratio of around 40% (Basic Dividend Policy) and will continue the Premium Benefit Club for shareholder benefits. The dividend payout ratio was 39.9% for the fiscal year ended March 31, 2026 and is forecast at 42.4% for the fiscal year ending March 31, 2027.

Dividend	Year ended March 31, 2026 Results	Year ending March 31, 2027 Forecast
Interim	25.0 yen	30.0 yen
Fiscal year-end	30.0 yen	30.0 yen
Total	55.0 yen	60.0 yen

Medium-Term Plan / Topics

Results are forecast to significantly exceed the three-year management plan announced in May 2024 (net sales of 21,170 million yen, operating profit of 3,465 million yen). For the fiscal year ending March 31, 2028, double-digit operating profit growth (over +10%) is expected as sales expand and the investment cycle is completed. Under management mindful of cost of capital and share price, the company will aim to keep the equity ratio at 50% or higher while actively providing shareholder returns and implementing growth investments, and to keep ROE at around 20-35%. The company also positions the following three pillars of its medium-term growth strategy: accelerating AI-driven reform, executing strategic investments, and building a stock-type revenue model and realizing synergies, including joint promotion of the whole-building guarantee service with K-net and deployment as a distributor of the Mitsubishi Estate Group’s HOMETACT smart home service.

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.