Fuyo Lease revises forecast on €32.9bn renewable energy project losses

Fuyo General Lease identified €32.9 billion in receivables at risk, primarily from renewable energy projects in Spain. These projects, led by alliance partners and funded through entities like Mazarine Renewables and AQ Capital S.A., faced delays due to insufficient development funds. As a result, the company will record these losses in its second-quarter financial results for the fiscal year ending March 2026.

The revised forecast for the fiscal year ending March 2026 anticipates consolidated operating profit of ¥34,000 million (down from ¥66,000 million), ordinary profit of ¥38,000 million (down from ¥70,000 million), and profit attributable to owners of parent of ¥17,000 million (down from ¥46,000 million). This represents a 48.5% decrease in operating profit and a 63.0% decrease in profit attributable to owners of parent.

Despite these one-time losses, Fuyo Lease maintains that its earning base is steadily expanding and the growth trend continues, aiming to achieve its medium-term management plan targets by March 2027. The company's policy for long-term, stable dividends remains unchanged, with the dividend forecast for FY2026 unaffected by the earnings revision.