Mitsubishi Heavy Industries (7011) investor relations material

Executive summary

• Order intake reached ¥5,029.1 billion, up 13% year-over-year, led by Energy Systems, while Aircraft, Defense & Space saw a decline due to a high base effect but remained at high levels.

• Revenue increased 9.2% year-over-year to ¥3,329.3 billion, with all major segments contributing to growth.

• Business profit rose 26% to ¥301.2 billion, driven by GTCC, Metals Machinery, and Defense & Space, despite some project losses.

• Net income attributable to owners of the parent increased 23% year-over-year to ¥210.9 billion.

• Total comprehensive income more than doubled year-over-year, reaching ¥394.48 billion.

Financial highlights

• Free cash flow was ¥167.6 billion, with operating cash flow at ¥256.7 billion, both showing significant year-over-year improvement.

• Order backlog exceeded ¥12 trillion, up about ¥2 trillion from the previous fiscal year.

• Total assets rose to ¥7,393 billion as of December 31, 2025, with equity attributable to owners of the parent at ¥2,653.03 billion.

• EBITDA reached ¥393.1 billion, with an EBITDA margin of 11.8%.

• Net interest-bearing debt decreased to -¥112.7 billion.

Outlook and guidance

• Full-year order intake forecast raised to ¥6,700 billion, with business profit forecast at ¥410 billion and net income at ¥260 billion.

• Free cash flow target revised to ¥200 billion.

• Basic earnings per share for the full year is forecast at ¥77.38; dividend forecast is ¥24.00 per share.

• Exchange rate assumption for Q4 is 150 yen to the dollar.