Fuyo Lease profits plunge 89% on renewable energy losses

Fuyo General Lease Co., Ltd. announced a substantial decline in profitability for the six months ended September 30, 2025. Net sales rose 3.5% year-on-year to ¥343,520 million, but operating profit plummeted 89.0% to ¥3,568 million. Ordinary profit decreased 82.7% to ¥5,917 million, and profit attributable to owners of parent fell 79.7% to ¥4,623 million. This downturn was primarily attributed to recording losses from uncollectible or delayed collection of receivables related to renewable energy projects in Spain, totaling ¥28.6 billion in impact on ordinary profit.

Despite the profit decline, newly executed contract volume increased 20.1% year-on-year to ¥1,011,133 million, driven by strong performance in the Financing segment, which saw a 35.4% rise in new contracts. However, the Lease and Installment Sales segment experienced a 13.2% decrease. Operating assets grew 0.4% to ¥3,085,138 million. The company reiterated its full-year consolidated earnings forecast, anticipating an ordinary profit of ¥38,000 million and a basic earnings per share of ¥188.52, with no change to its dividend forecast of ¥158 per share for FY2025.