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Tokyo Century lifts its estimate of the Itochu aircraft-lessor gain as the yen weakens

Tokyo Century now expects about ¥38bn of after-tax profit from selling half of its US aircraft lessor to Itochu, up from about ¥30bn, citing a weaker yen, and has raised its full-year profit forecast to ¥145bn.

By Tokyo Brief DeskNov 9, 20262 min readTokyo Century Corporation8439
Parked narrow-body passenger jets beside a diagram of a company split into two equal halves and a currency-rate gauge.

Tokyo Century has raised its estimate of what the sale of half of its US aircraft-leasing holding company to Itochu will add to profit, and moved its full-year guidance up with it. The deal itself was announced on 3 August. Earlier Tokyo Brief coverage What changed on 9 November is the size of the expected gain.

The new estimates

The company's guidance revision notice says the transfer of 50% of TC Skyward Aviation U.S., Inc. to Itochu should produce an extraordinary gain on the sale of subsidiary shares of about ¥65bn in its consolidated results, up from about ¥50bn at the 3 August announcement. The effect on net profit attributable to owners of the parent is now about ¥38bn, against about ¥30bn before. In the parent company's own individual accounts the expected gain is about ¥85bn, up from about ¥70bn.

The reason given is the exchange rate. The yen has weakened against the rate assumed in the earlier calculation, which raised the estimates.

Guidance and dividend

Tokyo Century now forecasts net profit attributable to owners of the parent of ¥145bn for the year to March 2027, up from ¥123bn in May's forecast and compared with ¥111.3bn a year earlier. Forecast earnings per share rise to ¥296.06 from ¥251.66. The company said the increase reflects the share transfer and its overall view of the business environment.

The board also lifted the interim dividend to ¥52 from ¥45 and the year-end forecast to ¥52, for a ¥104 annual payout against ¥90 previously.

Terms and timing

The half-year securities report puts the planned consideration at $1,946mn for 3,118 shares, leaving Tokyo Century with 50.0%. Completion is planned for November 2026, subject to antitrust approvals in the relevant countries. Once the deal closes, the US holding company and its subsidiary Aviation Capital Group will leave Tokyo Century's consolidated group and become equity-method affiliates.

The gain estimates assume completion goes to plan in November, and the company says they may change with exchange rates and other factors. The deal has not yet closed.