ORIX Corp announces share repurchase progress

ORIX Corporation (TSE: 8591; NYSE: IX), a Tokyo-based diversified financial services group, has disclosed the status of its ongoing share repurchase program. The company revealed that between August 1, 2024, and August 31, 2024, it repurchased 2,341,400 of its common shares for a total cost of approximately 7.93 billion yen.

This repurchase activity is part of a broader buyback plan that was approved by the company's Board of Directors on May 8, 2024. Under the terms of the plan, ORIX is authorized to acquire up to 40 million shares, representing about 3.5% of its total outstanding shares (excluding treasury shares), for a maximum expenditure of 50 billion yen.

The repurchase period extends from May 15, 2024, to March 31, 2025, with the buyback being executed through market purchases based on a discretionary dealing contract.

As of August 31, 2024, ORIX has cumulatively repurchased 7,613,200 shares at a total cost of 26.38 billion yen since the Board's resolution. The repurchase strategy is part of the company's capital allocation policy aimed at enhancing shareholder value.

ORIX Corporation operates in various sectors including finance, insurance, banking, asset management, real estate, environment and energy, and more, with a global presence in around 30 countries and regions. The group employs approximately 34,000 people worldwide and is committed to sustainable development.

This report is based on information provided in a press release statement by ORIX Corporation.

In other recent news, ORIX Corporation reported a significant 38% increase in Q1 net income, reaching JPY86.7 billion. This growth was primarily driven by steady earnings in the finance sector and substantial profit increases in the inbound tourism segment.

The company's annualized return on equity (ROE) also rose to 8.7%. However, ORIX USA reported a decline in profits due to cautious risk management, while profits in the Asia and Australia segment dropped due to the absence of valuation gains.

BofA Securities resumed coverage on ORIX Corp with a Neutral rating, citing challenges in forecasting earnings due to significant volatility in profits, particularly from the private equity investment segment. The firm outlined the risks involved in ORIX's ventures, especially in U.S. real estate and credit operations. These factors contribute to a higher cost of capital for the company within the insurance and non-bank sectors.

ORIX is strategically focusing on sectors with growth potential, such as inbound tourism and aircraft leasing. The company expects growth in the aircraft leasing market and anticipates positive impacts from changes in interest rates and FX. Equity investment in Panasonic (OTC:PCRFY) Connect's projector business is seen as a potential growth driver.

These are the recent developments in the company's operations.

InvestingPro Insights

ORIX Corporation's recent share repurchase program is a significant move that aligns with its capital allocation policy to enhance shareholder value. According to real-time data from InvestingPro, ORIX Corporation boasts a market capitalization of $29.23 billion, with a P/E ratio that suggests an attractive valuation, standing at 11.04. The company's commitment to shareholder returns is further evidenced by its history of maintaining dividend payments for 33 consecutive years, a testament to its financial resilience and operational stability.

InvestingPro Tips highlight that ORIX is not only a prominent player in the Financial Services industry but also demonstrates a strong return over the last month, with a price total return of 17.64%. This performance is indicative of the company's robust market position and investor confidence. Additionally, ORIX's liquid assets exceed its short-term obligations, providing a cushion for the company to navigate economic fluctuations.

For those looking to delve deeper into ORIX Corporation's financial health and investment potential, InvestingPro offers additional tips and insights. Currently, there are numerous tips available on the platform, offering a comprehensive analysis for potential investors (https://www.investing.com/pro/IX).

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