Mitsubishi Heavy Industries (7011) investor relations material

Executive summary

• Q1 FY2026 order intake, revenue, business profit and net income reached first-quarter records; backlog rose ¥865.3bn from FY2025 year-end to ¥14.1tn.

• Revenue increased 16% YoY to ¥1,194.2bn and business profit rose 65% to ¥159.6bn; net income attributable to owners reached ¥134.7bn, nearly double YoY.

Financial highlights

• Order intake was ¥2,022.4bn, up 26% YoY; revenue was ¥1,194.2bn, up 16%.

• EBITDA reached ¥190.3bn, up 52% YoY, with a 15.9% margin, up 3.8 points.

• Free cash flow was ¥391.5bn; operating cash flow was ¥284.6bn, up from ¥89.7bn, while investing cash flow was positive at ¥106.9bn, mainly on Logisnext sale proceeds.

• Total assets were ¥8,151.3bn; cash and equivalents increased ¥349.2bn to ¥1,684.0bn.

• Interest-bearing debt was ¥519.8bn and the D/E ratio was 0.16.

Outlook and guidance

• FY2026 revenue and business profit forecasts were maintained at ¥5,400bn and ¥540bn, respectively; net income attributable to owners is forecast at ¥380bn.

• Order intake guidance increased to ¥7tn, with GTCC and Defense & Space forecasts each raised by ¥100bn; FCF guidance rose ¥300bn to ¥600bn.

• Annual dividend forecast increased to ¥29 per share, comprising ¥14 interim and ¥15 year-end.

• Business profit guidance includes a ¥20bn buffer for one-time expenses; Q1's ¥25bn one-time gains were already included in the full-year forecast.

• CFO said Q1 captured ¥55bn of the initially expected ¥83bn full-year benefit from revenue and margin changes; updated guidance was planned with H1 results.