Tokyo Century Q1 Net Profit Jumps 59% to ¥35.1 Billion as Aircraft and Ship Sales Lift Transport Profit 245%

Tokyo Century Corporation (TSE: 8439) reported consolidated first-quarter results for the three months to June 30, 2026 under Japanese GAAP. Revenue rose 11.7% to ¥388,407 million, operating profit climbed 31.1% to ¥46,303 million, recurring profit advanced 36.9% to ¥51,057 million and profit attributable to owners of the parent leapt 59.1% to ¥35,129 million from ¥22,082 million. Earnings per share reached ¥71.85 against ¥45.25. Comprehensive income swung dramatically, to a ¥63,971 million gain from a ¥29,245 million loss a year earlier, as currency translation moved in the group's favour.

Gross profit up 19.5%, and the gains keep coming below the line

Gross profit expanded ¥15.1 billion, or 19.5%, to ¥92.3 billion, which the company attributes primarily to the International Business and Transport divisions. Selling, general and administrative expenses rose ¥4.1 billion (9.8%) to ¥46.0 billion, mostly on higher personnel and property costs in International Business. Non-operating income more than doubled, up ¥2.8 billion (141.4%) to a ¥4.8 billion profit, driven by higher equity-method earnings. Below recurring profit, extraordinary items contributed a ¥1.5 billion gain, largely a litigation settlement. Income taxes increased ¥2.1 billion (18.9%) to ¥13.4 billion and profit attributable to non-controlling interests rose ¥0.3 billion (6.7%) to ¥4.1 billion — neither enough to blunt the 59.1% rise at the bottom line.

Six new segments, and Transport steals the quarter

Following an organisational overhaul on April 1, 2026, Tokyo Century has replaced its five former reporting segments — Domestic Leasing, Auto Mobility, Specialty, International and Environmental Infrastructure — with six: two customer-facing front divisions (Domestic Business and International Business) and four product divisions (Social Infrastructure, Transport, Mobility and Corporate Investment). Prior-year figures are restated on the new basis. The standout is Transport, where segment profit more than tripled — up 245.4% to ¥12.2 billion on higher gains from aircraft disposals and vessel sales, with revenue up 20.5% to ¥61.5 billion and segment assets up 4.4% to ¥2,348.7 billion, by far the group's largest asset pool. International Business grew revenue fastest, up 35.9% to ¥64.3 billion, with profit up 37.4% to ¥5.0 billion on a large ITAD mandate at subsidiary CSI Leasing and solid North American leasing. Domestic Business remained the revenue anchor at ¥127.6 billion (+8.7%), with profit up 17.2% to ¥8.1 billion on a bigger pick-up of earnings from the NTT・TC Leasing joint venture. Social Infrastructure lifted profit 37.8% to ¥3.3 billion on real-estate disposal gains and overseas renewable-energy projects even as revenue slipped 2.5%. Mobility added 13.7% to ¥7.4 billion on higher used-car prices and inbound-driven rental-car demand. Only Corporate Investment fell, down 12.5% to ¥1.4 billion, because this year's capital gains ran below last year's.

A balance sheet that grows on both sides

Total assets rose ¥222.7 billion (3.1%) to ¥7,437.5 billion, with segment assets up ¥145.2 billion (2.3%) to ¥6,455.9 billion. Liabilities grew in step, up ¥183.4 billion (3.1%) to ¥6,145.7 billion, of which interest-bearing debt increased ¥228.4 billion (4.4%) to ¥5,370.9 billion — the funding engine of a leasing balance sheet. Net assets improved ¥39.2 billion (3.1%) to ¥1,291.8 billion, driven by a ¥13.5 billion rise in retained earnings and a ¥22.1 billion increase in the foreign-currency translation adjustment. That left the equity ratio 0.1 point higher at 15.6%, with shareholders' equity of ¥1,159.1 billion. The translation swing has a specific cause worth noting: the group's main overseas subsidiaries and affiliates close their books in December, and the rate used for their consolidation moved to ¥159.93 per US dollar (as of March 2026) from ¥156.54 (December 2025).

Guidance untouched, dividend up 12.5%

Tokyo Century made no revision to the consolidated forecast published on May 11, 2026: profit attributable to owners of the parent of ¥123,000 million, up 10.5%, with earnings per share of ¥251.66. The first quarter's ¥35.1 billion represents 28.6% of that target — comfortably ahead of a straight-line quarter, though the Transport division's disposal gains are by nature lumpy. The dividend forecast is likewise unchanged and notably higher: ¥90.00 per share for FY3/2027, split evenly between a ¥45.00 interim and a ¥45.00 year-end payment, against ¥80.00 paid for FY3/2026 (¥36.00 interim plus ¥44.00 year-end). The company applies special accounting treatments permitted for the preparation of quarterly consolidated statements; there were no changes in accounting policies, estimates or restatements.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company’s published earnings short report and may be subject to subsequent revision.