Mitsubishi Electric (6503) investor relations material

Executive summary

• Q1 FY26 revenue reached ¥1,312.8 billion, up 2% year-over-year, with operating profit at ¥111.9 billion, up 91%, both record highs for Q1.

• Growth was driven by Infrastructure, Life, and factory automation systems, with a notable one-time gain from a subsidiary share transfer.

• Net profit attributable to shareholders reached ¥90.9 billion, up 85% year-over-year, a record high for Q1.

• Overseas revenue accounted for 54.7% of total, with Japan and North America showing notable increases.

• Management emphasized resilience through price improvements, cost reductions, and indirect cost optimization.

Financial highlights

• Operating profit margin improved to 8.5% from 4.6% year-over-year.

• Net profit margin attributable to stockholders increased to 6.9% from 3.8% year-over-year.

• Free cash flow rose to ¥174 billion, up ¥53.9 billion year-over-year.

• Cash and cash equivalents at period-end rose to ¥821.8 billion.

• Cost of sales ratio improved to 68.4% from 71.0% year-over-year.

Outlook and guidance

• FY26 full-year revenue forecast is ¥5,400.0 billion, with operating profit expected to rise 10% to ¥430.0 billion; guidance unchanged.

• Net profit attributable to stockholders projected at ¥340.0 billion, up 5% year-over-year.

• Automotive equipment sales volume forecast revised down, but overall outlook stable due to offsetting factors.

• U.S. tariff impact expected at -¥30.0 billion, with countermeasures in place.

• R&D expenditures forecast to increase 5% to ¥240.0 billion for the full year.